Shopper’s Stop Ltd. partners The Nuance Group AG to set up a Joint Venture for Indian airport retail

Company News, March 6

MUMBAI

Indian retailing pioneer Shopper’s Stop Ltd. and leading international airport retailer, The Nuance Group AG addressed a press conference on Thursday, announcing a Joint Venture between the two for the purpose of entering the Duty Free retail market at Indian airports. The equally owned Joint Venture, named as Nuance Group (India) Pvt. Ltd. is the result of a Memorandum of Understanding (MoU), signed between Shopper’s Stop Ltd. and The Nuance Group AG in June last year and shareholders agreement executed recently.

The press conference held in Mumbai was hosted by the representatives from both the companies, who jointly stated their vision and plans for Nuance Group (India) Pvt. Ltd. and the future of Duty Free airport retailing in India.

While the airport retailing business in many countries like the U.S.A, U.K, Europe and even some of the far eastern countries is well developed and has even matured, India has yet to see the launch of airport retailing and climb the curve of growth in this format. With this joint venture, Indian travelers can expect to see the launch of international brands and formats at Indian airports changing the air travel experience and offering various options to passengers in the dwell time at the airport

India is currently one of the most promising markets as far as development in airports and its marketing is concerned. This process is further being accelerated by the upcoming privatisation of several major airports as well as by the fast expansion of various airline companies in the country.

The Nuance Group AG is the largest player in the global airport retailing space with decades of experience and operations spanning five continents. The Nuance Group AG follows a portfolio of five different kinds of retail services namely, tax + Duty Free shops, specialist stores, brand stores, food service and in-flight services. Its quality services and product offerings to the travelling consumer has earned the group a number of prominent awards such as the 2007 Raven Fox Global Travel Retail Awards for “Travel Retailer of the Year” and the 2006 Frontier Awards for “Best Airport Retailer of the Year.”

Speaking on the myriads of opportunities in the Indian airport retailing market, Mr. Roberto Graziani, President & CEO, The Nuance Group AG said, “India has emerged as a significant player in global business and economy in the last decade. The rapid economic boom has also had its effect on Indian travel, with an upswing in air services, increasing number of Indians travelling by air and foreign arrivals to destination India. Being the largest airport retailer in the global market it was only natural for us to define India as one of our key strategic expansion areas.”

Shopper’s Stop Ltd. has been a pioneer in the Indian organised retail space, and has over the last 15 years built strong competence in department stores, operating 20 stores all over India, which carry a mix of both National and International brands. Shopper’s Stop Ltd has expanded it’s portfolio of retail formats to include department stores under the name of Shoppers’ Stop and a home store format under the name HomeStop, speciality formats including Crossword Bookstores, Mothercare from U.K, cosmetics brand M.A.C and Food and Beverage retailing with BRIO- the café bistro and Desi Café.

Since inception, Shopper’s Stop Ltd has brought many firsts into India and has been instrumental in changing the Indian retail landscape. Shopper’s Stop Ltd has been credited with starting the retail revolution with the launch of it’s first department store as early as 1991.Now with the growing demand of air travel, Shopper’s Stop Ltd has entered into the joint venture with The Nuance Group AG to highlight the need for airports gearing up to the requirements of air travelers and providing the much desired retail solutions at the Indian airports.

Explaining the company’s foray into the airport retailing industry, Mr. B. S Nagesh, Customer Care Associate and & Managing Director, Shopper’s Stop Ltd. said “We believe with this partnership, we will extend our unique shopping experience to the airports and touch the lives of millions of travelers. This will also help us create a larger footprint across the country.”

Nuance Group (India) Pvt. Ltd. has been awarded the retail concession for the Greenfield Bangalore International Airport. .

About Shopper’s Stop Ltd

Shopper’s Stop Ltd., a pioneer in setting up nation-wide chain of large format departmental stores in India, has been promoted by K Raheja Corp Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate development and hotels in the country. Apart from the department store chain –Shoppers’ Stop (20 stores), the company has forayed into specialty stores for books – Crossword Book Store (41 outlets), home décor – HomeStop (2 stores) and in cosmetics and maternal care through exclusive retail agreements with international brands like M.A.C. and Mothercare (11 stores) respectively. The Company is occupying an aggregate area of 1,152,590 sq. ft. and Crossword Bookstores Ltd. occupies additional 201,890 sq ft.

Shopper’s Stop Limited also ventured in the Food & Beverages business by opening Brio – the café bistro (12 outlets) and Desi Café and into the entertainment sector by acquiring 45% stake in

Time Zone Entertainment Private Limited which is in the business of operating Family Entertainment Centres (FECs). The Company has now forayed in airport retailing through a Joint-Venture with The Nuance Group of Switzerland - world leading airport retailer.

Shoppers’ Stop’s reward-based loyalty programme called ‘First Citizen’ is the biggest and most successful programme in this category that boasts over 7,44, 000 members contributing to over 60% of Shoppers’ Stop’s sales annually. The First Citizen loyalty programme is also the third largest Loyalty Programme in the country.

Shopper’s Stop Ltd was awarded the “ICAI award for excellence in Financial Reporting” for its annual report. The awardees were selected based on Accounting Practices adopted by the participating enterprises in the preparation of their Financial Statement.

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For further information contact:

Saman@Perfect Relations: 9892460612

Shailesh@Perfect Relations: 9892355814