E-commerce giant Amazon’s investment arm, Amazon.com NV Investment Holdings, has sold 4 per cent stake in Shoppers Stop for US $ 32.46 million through an open market transaction.
The e-commerce company’s exit from the fashion retail brand indicates a strategic shift in its strategy and outlook toward the Indian market. By selling nearly 44 lakh shares of Shopper’s Stop, the e-commerce giant could imply a shift in its focus towards its core e-commerce and cloud computing (Amazon Web Services) businesses in India.
The buyers for the Shoppers Stop shares included a mix of institutional investors like 360 One Asset and Wealth Management, Kotak Mahindra Mutual Fund, Tata Mutual Fund, and Morgan Stanley. Additionally, the stock price of the retail chain also saw a positive influx with the company closing 1.20 per cent higher on the National Stock Exchange (NSE) following the news.
This divestiture comes after Amazon had initially invested in Shoppers Stop in January 2018, acquiring shares worth US $ 21.08 million. This move was seen as a strategic partnership to bolster Amazon’s physical retail presence in India.
This switch could indicate a decision to prioritise online growth over brick-and-mortar expansion by the online selling platform. The sale highlights a potential change in Amazon’s long-term vision for the Indian market.
