Despite soured Kozhikode opening, RPG firm on 100-store Kerala agenda

Retail behemoth RPG Group on Friday threw itself to taking on Kerala’s most militant trader outfit KVVES (Kerala Vyaparai Vyavasayi Ekopana Samithi) at its den by opening a 13,500 sq ft Spencer’s at Kozhikode and predictably earning a surge of protest at the function. This is Spencers’ first hyper-format in the state.

Meanwhile, CPI(M)-led LDF government gave out mixed signals with its youth outfit DYFI actively joining the protestors of Kozhikode-headquartered KVVES and the state police arresting about 25 of the protesting leaders. Despite the volley of stones, the opening function went off without bloodshed.

KVVES President T Nasirruddin, when contacted by FE, said that “the Friday’s protest was only a foretaste for monopoly retailers making a bid for the small trade’s market pie”. KVVES is banking on the state government to come out with a legislation to keep out the `retail monopolists’, he said.

At the same time, Rs 13,500-crore RPG Group is hardly worried about a sticky wicket ahead. “In fact, we will go ahead with the original agenda of rolling out 100 Spencer’s outlets in Kerala by 2010,” Samar Sheikhawat, Vice-President-Marketing, Spencer’s Retail Ltd, told FE, after the chequered opening function in Kozhikode.

RPG Group is firm in its agenda of focussing on tier-2 cities, where there the purchasing power is going up. The country-wide plan is for 360 outlets in 60 cities.

“Consumer response in Kerala is more than promising, for all the misinformed protest from local traders,” Sheikhawat said.

He claimed that RPG Group is not in the category of `foreign’ protestors that KVVES was gunning at, since Spencers had been set up in Kerala capital as early as 1930’s.

“We are in talks with developers in State for leasing arrangements in 18 stores. 20 MoUs have been signed,” he said.

NRI incomes and taste of living overseas have nursed need for lifestyle stores in Kerala. According to RPG top brass, more than any trader ire, real estate availability is the only roadblock to retail sector expansion in the consumer-state.