Shoppers Stop and HyperCity Retail signs MOU with Home Retail Group of UK

Shoppers Stop Ltd has announced that the Company and HyperCity Retail (I) Pvt Ltd has jointly signed a Memorandum of Understanding on February 23, 2007, to develop the Argos retail format of catalogue stores in India, with exclusive franchise from the Home Retail Group of the U.K.

Argos is among the leading general merchandise retailers in the U.K. and Ireland, and operates a unique format of catalogue stores, along with home shopping and online retail.

The stores and the catalogue shall be branded "HyperCITY-Argos" and shall be operated by an SPV jointly owned by the Company, and HyperCITY Retail (India) Pvt Ltd. The business would be initially launched in the Mumbai region and will be rolled out nationally in the long term.

B.S. Nagesh, Managing Director, of the Company, commented:

"This Unique retail format of Argos is particularly suited to the urban, densely populated areas, where retail space is expensive and limited in supply. Home Retail Group has developed the capability to manage this unique and highly successful retail format very efficiently and through the franchise arrangement we shall jointly adapt this capability to the Indian environment."

Source : Equity Bulls

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