The UK Home Retail Group's Argos retail is being brought to India through a franchise arrangement with two leading store chains - Shopper's stop and Hypercity Mall to launch the Hypercity Argos retail concept.
Argos, which will license its brand and product catalogue for use in retail outlets in India, says the deal would give it a "foothold" in a fast-expanding market. As well as providing its own catalogue, Argos will offer IT support and advice on developing sales through the internet.
Shopper's Stop operates 22 department stores in 11 Indian cities while Hypercity Retail opened its first food and general merchandise store last year.
According to Terry Duddy, chief executive, Home Retail Group, "The heads of terms with Shoppers Stop and Hypercity, both pioneers in the Indian retail market, gives Argos an initial foothold in what is a rapidly expanding market."
Several other British retailers including Mothercare, also in association with Shoppers Stop, have used the franchise model to enter India, while Tesco, spurned by Bharti, is said to be in talks for an alliance with the Tata Group.() Home Retail Group is reported as having said that it was excited by the opportunities in India but emphasised that its main focus remained on developing the Argos and Homebase businesses in Europe.
also see : See:Tata
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