Amazon.com Inc. is set to buy a 5 percent stake in Indian retailer Shoppers Stop Ltd., as the U.S. company steps up efforts to gain ground in the fast-growing consumer market.
Shoppers Stop’s board approved the issuance of 4.4 million shares to a unit of Amazon for 407.78 rupees (USD6.28) each, the Mumbai-based company said in an emailed statement late Saturday. As part of the deal, Amazon experience centers – which let customers test out the products available online – will be set up across Shoppers Stop’s network of 80 bricks-and-mortar stores in India.
Chief Executive Officer Jeff Bezos has allocated $5 billion toward Amazon’s expansion in India as it seeks to secure an advantage over local rivals in the South Asian nation. The e-commerce giant has a lot riding in the country after its washout in China, where the dominance of Alibaba Group Holding Ltd. and other domestic players made Amazon’s entry difficult.
No Comments