Amazon India, the domestic ecommerce arm of Amazon, plans to acquire 5% equity stake in departmental and fashion retailer Shoppers Stop for INR179 crore. The proposed deal will value Shoppers Stop at INR408 per share. The company now will hold an extraordinary general meeting (EGM) of its shareholders to seek their approval for this deal. It is expected to use the funds to continue its investments in expanding physical and online retail businesses.
In a parallel deal, Shoppers Stop also announced it had entered into an exclusive partnership with Amazon Seller Services Pvt. Ltd, a part of Amazon India, to sell all its private labels and brands that have tied up exclusively with the retailer on a dedicated microsite for Shopper’s Stop on Amazon.in. In total, Shoppers Stop will sell over 400 brands through this microsite. In return, the two retailers will conduct “joint marketing” initiatives while Shoppers Stop will open Amazon Experience Centers where the online retailer can showcase its brands. Govind Shrikhande, MD at Shoppers Stop, commented that “These will be for customers to touch and feel Amazon’s exclusive brands, mainly for fashion and accessories. This is still a work in progress and we will be able to share more details by Q4 of FY18”.