Spencer's opens first Hyper store in Kerala

Dec 14, 2007, 11:25 GMT

Kozhikode (Kerala), Dec 14 (IANS) The Spencer's Retail Ltd, the retail venture of the Rs.135-billion RPG group, opened its first 'Hyper' store in Kerala here.

The opening of the store invited protests from traders' groups and Left youth organisations. The protesters threw stones at the store and tried to barge into it.

The police arrested 20 protesters. The traders in the area observed a shutdown till noon.

Spencer's has some 17 food stores operating in different parts of the state and around 350 stores across the country.

'In the last six months, we have been able to set up stores at a rate of 40 a month,' said Ramesh Menon, Spencer's senior vice-president, operations.

The company is planning to open 40-50 stores in Kerala.

Commenting on the opposition in Kerala, especially from local traders, to the entry of organised retailing, Ramesh Menon said: 'Spencer's is operating in Kerala for the last 80 years. Spencer's opened its shops in Thiruvananthapuram and Kozhikode in the 1920s and 1930s. These shops never had been a problem to small-scale retail trading there.'

'We are not going to engage in any price game to undercut local traders,' he said.

'About 12 million retail traders are in India and they handle about 96 percent of the trade. The share of organised retailing is only about three to four percent,' said Samar Shekhavat, vice-president, marketing.

The Spencer's currently has a staff strength of 9,000.

'In Kerala, we have 500 employees. We are providing indirect employment to many more. The Hyper store in Kozhikode itself provides direct employment to 120 people,' said Ramesh.

Many local administrative bodies in Kerala, especially in the northern districts, are refusing license to retail companies to open stores.

'In Kozhikode, though we have applied for a license, the city municipal corporation has not issued one yet. However, if a license is not provided in 30 days, as per the rules, it will be deemed that the license has been issued,' said Raju Menon, who heads Spencer's Kerala operations.

© 2007 Indo-Asian News Service