Pantaloon’s Kishore Biyani is the poster boy of modern Indian retailing. Close rival and Shopper’s Stop CEO BS Nagesh knows it only too well.
MUMBAI: To many, Pantaloon’s Kishore Biyani is the poster boy of modern Indian retailing. Close rival and Shopper’s Stop CEO B S Nagesh knows it only too well. Now, as Biyani is spreading his wings across several business segments, the last thing that Nagesh wants to do is sit and watch.
In fact, he is thinking out of the box.
Shopper’s Stop Ltd is acquiring a 45% stake in the India operations of Australian company Time Zone Entertainment Pvt Ltd as part of establishing a connect with households and families (particularly the young adults) through entertainment.
Nagesh told DNA Money: “The board has just approved of the company’s decision to synergise our existing business with entertainment facility. To this effect, we will be acquiring 45% stake in this family entertainment centre (FEC) company operating under the brand ‘Timezone’.”
However, Nagesh refused to disclose anything about the financial details, including valuation of the stake purchase and acquisition funding.
Time Zone Entertainment Pvt Ltd currently operates three FECs in India. In fact, the company launched its India operations with K Raheja Corp Ltd’s first shopping and entertainment mall project Inorbit at Malad (western suburbs of Mumbai).
It currently occupies 31,500 sq ft of family entertainment space across Mumbai, Gallops Mall in Ahmedabad and Salt Lake City Centre in Kolkata. Industry sources also reveal that Time Zone Entertainment plans to set up close to 100 such family entertainment centres across the country.
Promoted by K Raheja Corp Group, Shopper’s Stop Ltd is one of India’s leading large format department store chains. The company reported a 34% increase in retail turnover at Rs 220.2 crore in the second quarter ended September 30, 2006 compared with Rs 163.7crore for the same period last year. Net profit rose by 81% to Rs 7.4 crore for the quarter compared with Rs 4.1 crore posted in the corresponding quarter last year.
Making a foray into Indian organised retail sector with lifestyle stores christened Shopper’s Stop, books, music and gifts retailing with Crossword, Shopper’s Stop Co Ltd has added home solutions retailing (Home Stop) besides foraying into food and beverages business (with Café Brio, Desi Café and Fresh Basket), infant care section through Mother Care stores.
The promoters also added hypermarkets to their retail portfolio with the launch of Hypercity a few months ago. It recently entered into a strategic alliance with the United Kingdom’s Nuance Group to enter airport retailing or duty-free retailing sector in the country.
As of date total number of stores operated by Shopper’s Stop Co Ltd include Shoppers’ Stop - 19, Home Stop - 2, Crossword franchisee stores under Shoppers’ Stop 17 (including 9 shop-in-shops), Mother Care 7 (including 5 shop-in-shops) , and F&B outlets 9. And as on September 30, 2006 Crossword Bookstores Ltd had 19 franchisee stores. It currently occupies an aggregate area of 1,058,207 sq. ft. and an additional 115,000 sq. ft. by Crossword Bookstores Ltd.
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