Amazon to buy 5% stake in India’s Shoppers Stop
Amazon is planning to acquire a 5% stake in Indian department store chain Shoppers Stop for Rs1.79bn ($27.52m).
The investment is expected to enable Shoppers Stop to enhance revenue and add physical stores.
The Shoppers Stop board approved the deal, which comprises the sale of more than four million equity shares to the American retailer’s investment division, Amazon.com NV Investment Holdings, which is registered with SEBI as a foreign portfolio investor.
Separately, the company signed a partnership deal with Amazon Seller Services (ASSPL) to have an exclusive store on the retailer’s marketplace.
Shoppers Stop customer care associate and managing director Govind Shrikhande said: “In line with our omnichannel retail vision for the company, we have strengthened our partnership with Amazon.in to deepen our presence in the online space.
“In addition to our own shopping site www.shoppersstop.com and mobile app, online shoppers will now have the opportunity to also experience Shoppers Stop in the marketplace arena via our exclusive brand store on Amazon.in. Overall, this alliance with Amazon.in will give a significant fillip to the growth of our omnichannel business.”
Under the terms of the deal, the retailers have agreed to jointly conduct marketing and promotion activities.
Shoppers Stop stores will also house Amazon experience centres to give customers access to Amazon.in’s exclusive assortment.
Amazon Fashion Arun Sirdeshmukh head said: “This partnership enables Amazon.in to further extend its leadership on selection in fashion category and offer customers across India fast and guaranteed delivery on millions of new fashion products and brands and enables Shoppers Stop to access Amazon.in’s nationwide customer base and expand reach in new geographies.
Through the partnership, Shoppers Stop intends to list its portfolio of more than 400 brands across categories such as apparel, footwear, beauty and accessories on the marketplace.
The transaction related to the stake sale is subject to the receipt of shareholder and regulatory approvals.