Spinach, the food and grocery retail chain, owned by Wadhawan Food Retail Pvt Ltd (WFRPL) of Dewan Housing Finance Corporation fame, which launched its first retail outlet in Bandra Kurla Complex of Mumbai in March, 2006, is planning to open 1,500 retail grocery stores across the country in three to five years. The expansion is envisaged through both organic and inorganic routes, reports DNA India. Of the planned 1,500 outlets, 300 to 500 outlets are likely to come through acquisition of existing players, including Gujarat based Adani Retail. Taking this approach should help Spinach to gain a sizeable market share besides achieving the targeted expansion.”
With an estimated set-up cost, based on the size and location, of each store in the range of Rs 75 lakh to Rs 1.50 crore, the promoters have earmarked Rs 75 to Rs 100 cr. to meet funding needs of the the initial phase of expansion.
Besides stocking a variety of FMCG products, fruit and vegetables, stationery, OTC medicines, etc, each of the Spinach store, modelled after the best international neighbourhood stores, would have a bakery and a separate refrigerated space for meat and fish products. Plans include adding prescription medicines and alcoholic beverages over a period of time.
“The motive behind Spinach store is to provide fresh and quality products at the right price, in the neighbourhood, in an environment that’s international and which will eventually become meeting ground for the community of that particular locality,” said an Spinach official.
Depending on the size, Spinach stores will be known as Spinach Express (less than 2,500 sq.ft.), Spinach Local (2,500 to 5,000 sq. ft.) or Spinach Super(5,000 to 7,000 sq. ft.) stores.