June 07, 2011 (LBO) – Sri Lanka’s Richard Pieris group wants to cash in on the post-war consumer spending boom by rapidly expanding its chain of ‘Arpico’ supermarkets, a senior official said. The firm’s profits nearly doubled to 2.1 billion rupees in 2010 due to higher returns from core business areas, plantations, retail and plastics business. The group plans to invest over two billion rupees on expansion plans and aims to expand the number of Arpico supermarkets to 35 from the current 10 by end-2011.
“Andrew (Dalby) when he left his cozy job in London, he promised me a to give one thing which is a 10 percent net (margin) over the turnover,” Sena Yaddehige, chairman of Richard Pieris group told our sister news website LBR at a media briefing held recently.
“He’s going to get it; he’s fairly close to it now.”
Andrew Dalby, an ex-London banker with retail experience joined Richard Pieris to head its once lethargic retail sector. Now the retail sector contributes over 40 percent to the group’s 27 billion turnover.
Now Dalby wants to dethrone Cargills as Sri Lanka’s largest retail chain by turnover. But the two competitors’ business models vastly differ.