Amazon sets eyes on India's offline retail market with 5pc stake in Shoppers Stop

Marking its first foray into India's offline retail space, Amazon's investment arm has acquired a 5 percent stake in Mumbai-headquartered fashion retailer Shoppers Stop.

Amazon.com NV Investment Holdings, a foreign portfolio investor, will subscribe to about 4.4 million shares, equivalent to about 5 percent stake, in the Indian retailer at 407.78 rupees apiece on a preferential basis, Shoppers Stop said in a filing. The Amazon affiliate, however, will not take a board position.

With ever-increasing competition from rivals like Flipkart and Paytm Mall,  Amazon now looks to expand its presence in the offline market too.

Last week, Shoppers Stop said it had entered into an exclusive partnership with Amazon Seller Services, as part of which it would have a flagship store on the Amazon marketplace. The company said it will be selling its entire portfolio of over 400 products across apparel, footwear, and other categories on Amazon.in website. Amazon too will get space to set up experience centers at Shoppers Stop outlets to promote its fashion products on its online platform.

Amazon isn't the only one trying hands at offline sale channel. Flipkart owned Myntra opened its first store in Bangalore in March to promote its largest private label brand, Roadster. The US e-tailer itself has opened its own bookstores in major US cities and has even piloted a self-checkout grocery store in its hometown of Seattle.