Thursday, November 16, 2006

Subhiksha aggressively building its private label brand, to cross 500 stores this month

The food retail sector is gearing up for the more competition after Reliance Retail's mega entry in the industry segment. Subhiksha is one of the best known names in food retailing, but has been limiting its growth in the south where it has already established its brand. Now, The Economic Times reports that discount food retailer Subhiksha is likely to cross 500 stores this month and is building its private label brand and its mobile phone and pharmacy sections. The company will be opening 100 new stores this month to reach a total of 500 stores. Subhiksha is happy with the results of its phone retailing that it started in Delhi last month and is considering setting up a separate chain for the segment along with one for pharmacy products.

By March 2007, the company hopes to reach 750 stores. Store openings are happening at a faster pace now, due to adequate funds being raised and the company fixing its backend integration. The company has allocated Rs. 300 crore for its expansion, raising money through debt, equity and working financial capital.

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