Dec 15, 2008

Business - Subhiksha plans relocation of outlets, slows expansion

Retail chain Subhiksha today said it plans to relocate around 5-10 per cent of the company's existing stores to take advantage of the falling retail rentals.

The company, which has currently around 1,650 stores across the country, is also slowing down its planned expansion by 10-12 per cent for the remaining part of the current fiscal.

"We are relocating 5-10 per cent of our stores to take advantage of the rapidly falling rentals across the country," a Subhiksha spokesperson said, adding that the company wants to take advantage of the expected further fall in rates.

"As of September end, we were on track with our expansion plan. We have now reduced new property signings in the current quarter to take advantage of expected fall in rents," the spokesperson said.

He added that during 2008-09, the company might be 10-12 per cent short of the earlier set expansion figure.

Subhiksha Managing Director R Subramanian had earlier this year announced a Rs 1,200 crore expansion plan for the company's retail and grocery format, besides plans for venturing into the consumer durables retailing business.

The company had set a target of having 3,000 stores by end of 2010.

The company also denied any plan to close down any of the existing 1,650 outlets spread across the country.

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