23rd Feb 2007 12:22
Home Retail Group Plc23 February 2007 23 February 2007 Home Retail Group plc Investment in new development opportunities Home Retail Group plc, the UK's leading home and general merchandise retailer,today announces it is investing in two new development opportunities. The company has today signed heads of terms to develop the Argos retail formatin India through a franchise arrangement with a joint venture company owned byleading Indian retailers Shopper's Stop Ltd and Hypercity Retail India PrivateLtd. The company also announces it has signed heads of terms to subscribe for a 33%stake in Irish homewares retailer, 'Home Store + More', subject to clearancefrom the relevant competition authorities. Terry Duddy, Chief Executive Officer, commented: "I am delighted to be able to announce today's strategic developments. The headsof terms with Shopper's Stop and Hypercity, both pioneers in the Indian retailmarket, gives Argos an initial foothold in what is a rapidly expanding market.Meanwhile, our investment in Home Store + More will strengthen our position inthe highly fragmented homewares market through the roll-out of its format inIreland. These two ventures provide an exciting but cost-effective opportunity toleverage our skills, sourcing scale and capabilities over time. However, ourcore focus continues to be driving the organic growth opportunities within Argosand Homebase." Argos franchise development in India Home Retail Group will franchise the Argos concept to the joint venture companyand under the terms of the arrangement, Argos will be providing its brand,catalogue and multi-channel expertise and IT support. The business will belaunched towards the end of the year under the 'HyperCITY-Argos' brand name,initially in the Mumbai region. At this stage, it is envisaged that the offerwill be based largely on the existing Argos multi-channel proposition. Strategic investment in Home Store + More Home Retail Group has signed heads of terms to subscribe for a 33% stake in theHome Store + More business, subject to clearance from the relevant competitionauthorities. Home Store + More is an out-of-town homewares retailer, currentlywith two stores in the Dublin area. Home Retail Group's investment of around £7m (Euro 10m) will be used to fund anagreed plan to expand the out-of-town homewares chain in Ireland. Separate fromthis investment, the management team of Home Store + More will also support HomeRetail Group in our own development of a homewares format in the UK in duecourse. Enquiries Home Retail Group Richard Ashton Finance Director 01908 600 291 Stuart Ford Head of Investor Relations Kim Warren Investor Relations Executive Finsbury Rollo Head 020 7251 3801 Alice Macandrew Notes to editors About Shopper's Stop Ltd Shopper's Stop is a leader in the Indian retail sector and a pioneer in settingup a large format department store chain in India. With a presence in elevenIndian cities, Shopper's Stop operates 22 department stores and has numerousother retail formats. Shopper's Stop has a proven capability of working withinternational partners, for example it operates a franchise agreement withMothercare plc that has so far seen the launch of 11 stores in India with plansto open more than 40 in the next five years. Shopper's Stop operates over one million square feet of retail space in Indiawith more than 200 international and Indian brands sold through their stores.The company was established by K. Raheja Corp, one of the leading real estatedevelopers in India, with interests in commercial, residential, retail andhospitality. Shopper's Stop was partially floated in India two years ago and K.Raheja Corp retains a 67% stake. About Hypercity Retail India Private Ltd Hypercity Retail India Private Ltd is also backed by the K. Raheja Corp. Thefirst Hypercity store opened in May 2006 with over 120,000 square feet oftrading space in Mumbai. It stocks a large range of groceries, fresh foods, homeproducts, clothing and consumer durables and offers its customers convenience,variety and value for money. Hypercity is progressing with plans for a roll outof the format in India. Shopper's Stop worked with K. Raheja Corp to developthis business and has an option to acquire 51% of the business in 2008. About the Indian Franchisee Joint Venture Company The joint venture company will be jointly owned by Shopper's Stop Ltd andHypercity Retail India Private Ltd. This company, will be a franchisee of HomeRetail Group and will develop and operate the multi-channel offering under theHyperCITY-Argos brand name. About Home Store + More Home Store + More is an out-of-town retailer that provides a one-stop shop forcustomer's homeware needs. Its stores are 20,000 square feet and sell over15,000 homeware products offering large ranges of great value bedding,towelling, tableware, cookware, kitchenware, household electrical appliances andother home accessories. About Home Retail Group Home Retail Group is the UK's leading home and general merchandise retailer withsales of over £5.5 billion in the last financial year. It sells products undertwo distinctive and complementary retail brands, Argos and Homebase, which arehousehold names in the UK. Argos is a unique multi-channel retailer recognisedfor choice, value and convenience and is the UK's leading seller of generalmerchandise. Homebase is the UK's second largest home improvement retailer andis recognised for choice, style and customer service across the wider homeenhancement market. Home Retail Group employs approximately 51,000 people, hasalmost 1,000 stores throughout the UK and Republic of Ireland and serves over200 million customers a year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Home Reit