Touch and feel experience is the best thing one consumer could ever get and that’s what the shoppers stop has brought to you. Yes you heard that right because an affiliate of Amazon.com Inc has agreed to buy a 1.79 billion-rupee ($27.6 million) stake in Indian retailer Shoppers Stop Ltd.
“The Board of Directors approved a proposal to issue 5 per cent equity shares on preferential basis to Amazon.com NV Investment Holdings LLC at Rs 407.78 per share aggregating to Rs 179.26 crore,” said the company in a regulatory filing on the BSE.
“Shopper’s Stop will use the funds to continue its investments in expanding physical and online retail businesses. Amazon is able to get a touch and feel for its products through the experience zone. We will leverage each other’s marketing strengths. And it’s only the starting point. We have multiple things to work out from this point onward and the real action will be after 90 days,” he said.
On Friday, Shoppers Stop shares had closed 3 percent lower at 418.10 rupees on the National Stock Exchange.
Shoppers Stop also hit 52-week high of Rs 499.70 in Monday’s trade, while it had touched 52-week low of Rs 265 on December 28, 2016.
Shoppers Stop has also entered into an exclusive partnership with Amazon Seller Services. As part of the tie up, Shopper’s Stop will have a dedicated microsite on Amazon to sell its private labels and brands that have tied up with Amazon.in. Mint reports that the retailer will sell over 400 brands through this microsite.
The partnership with e-commerce major Amazon would help Shoppers Stop tap customers from non- metro markets and scale up its financial performance.