Subhiksha plans to double its outlets in northern region

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The retail sector is set for a boom in the northern region with all the major players in the industry mapping the market for expansion. Among the frontrunners to foray into the retail arena here in early 2007, the retail chain—Subhiksha has opened about 96 stores in Punjab, Haryana and Chandigarh. It plans to double the number of retail outlets in the northern region by the end of this calendar year and plans to explore newer markets.

Mrinal Roy, president for northern region of Subhiksha Trading Services Ltd, shared the company's future plans with FE's Preeti Parashar. Here are the excerpts:

How has been the growth so far in the region for you?

We opened our first supermarket here in February 2007 and at present we have about 96 retail stores under our brand. The stores are categorised into supermarkets, fruits & vegetables, pharmaceutical and telecom formats. In Chandigarh, Panchkula and Mohali together we have 18 stores. About five more stores will come up in the tricity within the next four months. Since the market has a huge potential for growth, we'll be pumping in more investment by opening new stores.

What are the targets for this year?

We plan to take the toll of 96 stores to over 150 stores by the end of this calendar year. We have invested close to Rs 25 crore so far to open these stores. An investment of Rs 20-25 crore has been earmarked for further expansion. Exclusive pharma and telecom stores are also getting a good response. We have about 16 exclusive stores in the region so far and more will be set up in the coming months. We have grown 100% within the existing outlets and aim to grow 150% through new ones.

Which are the new markets that you will explore this year?

After covering the Tier I, II and Tier III cities of the region, we'll tap the rural markets. We further plan to expand in Amritsar, Jalandhar, Bathinda etc. Next on the radar is Himachal Pradesh and Jammu. The basic groundwork for this will start next month and the stores will be launched within the first quarter of the next fiscal year. As per estimates, Shimla will house about 5-6 stores and Jammu will have 10-15 stores.

Do you have your private labels also in the stores? Can we expect more such brands from your closet?