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Mumbai, Jan. 29 Shoppers Stop has decided to stop investments in its catalogue retailing venture, Hypercity Argos. The brand was being run through Gateway Multichannel Retail (India) Ltd, a joint venture between Hypercity Retail (India) and Shoppers Stop.

Speaking to Business Line, Mr B.S Nagesh, CEO, Hypercity Retail(India), said, “We had already invested nearly Rs 24 crore into the Hypercity Argos brand for catalogue retail operations. It was a franchise arrangement with Argos and as of today, this arrangement will cease to exist and we will no longer be investing in this venture.”

Shoppers Stop Ltd has informed BSE that Gateway Multichannel Retail (India) Ltd will wind down and discontinue its catalogue retail operations under the Hypercity-Argos brand.

Gateway Retail operates catalogue, stores and internet retail, under franchise from Home Retail Group. A decision to discontinue the Hypercity-Argos multi-channel retail business operations, following the initial two-year trial development period, was taken mutually by Gateway and Home Retail Group, as the business did not meet the planned performance levels to support the investments required in the current economic climate.

UK-based Home Retail group had signed an MoU with K Raheja Group division’s Shoppers Stop and Hypercity Retail to develop a retail format for Argos..

More Stories on : Alliances & Joint Ventures | Retailing

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