Description
Acquisition of Primark Croydon by Shoppers Stop. It initially highlights the background of both the companies . It highlights the history of both the companies and the products which they offer to the consumers.
Shoppers Stop’s acquisition of Primark Croydon Store (This is not a real case – it is only an imaginary one for understanding various concepts relating to a cross-border acquisition. The two retail chains used in this imaginary case is just to provide examples of real retail chains). Shoppers Stop is one of the leading retail chains in India and Primark is one of the leading retail chains in U.K. Shoppers Stop is looking at taking over the Croydon store of Primark in London. The Croydon Store The Croydon store has an annual sale of GBP 10 mn. It is located on leased premises and the lease is valid for the next 10 years. It is in a prime locality of Croydon. Primark is expecting GBP 50 mn in a cash deal as consideration for sale of the store. However, it is not opposed to the idea of considering other options for payment of the consideration. This sale will come with stock worth GBP 5 mn. The employees in the Croydon store will be transferred to other Primark stores before the sales. There are other terms relating to restricted use of ‘primark’ name for a few more months etc. Advise Shoppers Stop on funding and mode of acquiring Primark.
For details relating to Shoppers Stop and Primark, please look at their respective websites, namely, www.shopperstop.com and www.primark.co.uk.
However, the following will give you a quick picture about the 2 retail chains.
Shoppers Stop (www.shopperstop.com)
History YEAR 1991 1992 EVENTS We opened our first store at Andheri,a suburb in Mumbai selling only Menswear Ladieswear was introduced
1993 1994 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005
2006
2007
Added Children & non apparels Loyalty Program titled First Citizen was launched. Opened our second store in Bangalore Launched our co-branded credit card for our loyalty members in association with HSBC. Opened our third store in Hyderabad Implemented JDA Retail ERP (a global leader in retail ERP packages). Opened our fourth & fifth store in Jaipur & Delhi Opened our sixth & seventh store at Chennai & Chembur – Mumbai. Acquired Crossword – India 's leading retail book chain Opened our eight & ninth store in Pune & Bandra Opened the tenth store in Kandivli – Mumbai Opened the eleventh, twelfth & thirteenth store in Mulund – Mumbai, Gurgaon & Kolkata Opened our fourteen, fifteen & sixteenth store in Malad – Mumbai, Kolkata & Bangalore Opened our seventeen, eighteen, nineteen & twentieth store in Pune, Juhu – Mumbai, Bangalore & Ghaziabad . Launched M.A.C & Homestop – our home store. Opened out twenty first (Mumbai) and twenty second store in Lucknow . Launched Mothercare in India and our F & B outlets Brio & Desi Café. Bought 45% of Timezone India . Signed a 50:50 Joint Venture with the Nuance Group for Airport Retailing Signed an MOU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing.
Primark's history (www.primark.co.uk) From the first Penneys store in Ireland to the latest flagship store in Liverpool, the Primark story has been one of continuing success founded on a unique combination of fast fashion and lean operations. The beginning In June 1969, the first Penneys store opened in Mary Street, Dublin. Within a year, four more stores were added – all in the Greater Dublin area.
In 1971, the first large store outside Dublin was opened in Cork and by the end of that year there were 11 more stores in Ireland and one in Northern Ireland. Move into Great Britain By 1973, the number of stores had reached 18 in Ireland and Primark began trading in Great Britain with four out-of-town stores. The following year saw the opening of the first UK High Street stores in Derby and Bristol. In the next ten years, 18 stores were added in the UK and nine in Ireland, bringing the number of stores in the UK and Ireland to 22 each. Also in 1984, the first multiple acquisition took place with the purchase in Ireland of five Woolworth stores. Further expansion From 1984 to 1994 a further 13 stores were added in the UK and 12 in Ireland, bringing the total to 66 stores – 32 in the UK and 34 in Ireland. A major flagship store was purchased in 1992 – a 50,000 sq. ft. unit in O’Connell Street, Dublin, as BHS exited Ireland. Acquisitions Primark had a milestone year in 1995 with the development of the UK business following the acquisition of the BHS One-Up discount chain. As a result, 16 stores were added to the UK business, most in the Greater London area, and all of a significant size. The next major development occurred in 1999 with the acquisition of 11 stores from the Co-Op, including Reading. The Reading property, after much refurbishment, also facilitated the much-needed relocation of the UK buying offices. In 2000, C & A retreated from the UK. Primark acquired 11 of their stores which brought store numbers to 108, consisting of 75 in UK and 33 in Ireland. In October 2001, a 75, 000 sq. ft. store was opened in Manchester and conversion of 25,000 sq. ft. of former stockroom space has now increased the sales area of this store to 100,000 sq. ft. More flagship stores and acquisitions In 2001, a 40,000 sq ft store opened in Blanchardstown, Dublin. At the end of 2001, the number of stores had grown to 109 (75 in UK and 34 in Ireland). In 2002, two major stores were opened in Glasgow and Birmingham. In the period of 2004-2005, 14 new stores were opened, adding over 400,000 sq. ft. of retail space. In 2005, six stores were acquired from ‘Allders’, three of which opened in 2006. In July 2005, the acquisition of Littlewoods stores by ABF plc which comprised an estate of 120 premises was completed, of which 41 stores were transferred to Primark. The major programme for the re-fit and opening of 40 of these stores has been completed. Expansion into Spain
In May 2006, Primark opened its first store in Spain – in Plenilunio (Madrid), followed by a second store in Murcia in September 2006. On Thursday 5th April 2007, a 70,000 sq. ft. store was opened on London’s Oxford Street. Primark Liverpool opened on Wednesday 12th September 2007. In November 2007, two further stores were opened in Spain – in Jerez and in Xanadu (Madrid). Three stores opened in Spain in April 2008 – in Bilbao, Islazul (Madrid) and Oviedo – followed by, in June 2008, the opening of Parque Corredor (Madrid). In September 2008, Primark opened in Zaragoza and in October 2008, two further stores in Spain were opened in Asturias and in A Coruña. Primark opened its first store in the Netherlands (Rotterdam) in December 2008. In May 2009, Primark opened its first store in Portugal (Lisbon) and its first store in Germany (Bremen). In December 2009, Primark opened its first store in Belgium (Liège).
Number of Stores Trading at 3rd December 2009 Ireland - 38 Spain - 14 UK - 138 The Netherlands - 1 Portugal - 2 Germany - 2 Belgium - 1 Total - 196
Products Womenswear
Primark prides itself on providing its customers with up-to-the-minute fashion at affordable prices. Our aim is to ensure you get the right "look" within our stores, so if you're looking for the latest fashion in clothing, accessories, footwear or lingerie, look no further than your nearest Primark store Clothing With everything from the latest styles to the essential items that keep you looking chic, Primark has it all. Skirts, trousers, cardigans, dresses, jackets and much more. Lingerie Fun, flirty or functional - it's all at Primark. And of course it's affordable lingerie with the quality that you hope for. Accessories Complete your look with the latest trends in accessories from bags to bracelets and everything in between. Footwear Diamonds may be a girl's best friend but shoes come a close second. At Primark we have an entire range to fulfil your inner fashionista and put the finishing touches to your outfit.
Style for men With a range of brands from Cedarwood State to DenimCo, Primark has the fashion for all occasions. With everything from formal suiting and footwear to a more casual look in denim and T-Shirts. We have everything to put your look together and it's all available in your nearest Primark store. Clothing Our Butler & Webb range will cater for all of your formal needs, with cotton shirts, silk ties and a premium suiting range. Within our Backswing section we offer a full range of sportswear styles, from golfwear to ski-wear. Accessories Every fashion-conscious man needs to top off his outfit with the perfect hat, scarf, wallet or bag. Find everything you need for accessorising your look in our mens' accessories range. Footwear
From formal shoes for that special occasion to our canvas shoes for a more casual look, the Primark mens' footwear range will take you from formal sophistication to street-savvy in no time. Children wear Everybody knows kids grow fast, so keep them in fashion at affordable prices at Primark. Your nearest Primark store has everything you need, whether you are a bouncing baby or a fashionconscious teenager. Girlswear Every girl wants to look her best and at Primark we make no exception for the younger ladies, all the high fashion trends can be found in our Girlswear section, no matter what age you are. Boyswear When you think of boys, you think young and fun. At Primark we think the same and we ensure that all of our boys clothing is not only young and fun but also practical and affordable. Babywear Dress your bundle of joy, whether a boy or girl, in great baby basics to fashionable outfits. Everything your heart desires and your baby needs can be found in your nearest Primark store. Home Products At Primark we know that Home is where the heart is, so if you're re-decorating or just want to add something a little special from fragranced candles to velvet throws, check out our homeware products to bring that little bit extra to your home. You'll find sumptuous bed linen that can keep you cool in the sumer and warm in the winter, including complete bed sets, duvet covers, two-pack hollow-fibre pillows and 100% cotton percale sheets. We have a range of duvets available in single, double or king sizes. For the bathroom you can buy cotton towels in 11 colours and two-pack reversible bath mats. To enhance the pampering you deserve, we also have candles, all delicately fragranced in seasonal scents and colours. And you can give your living room that feeling of class with products from our range of cushions and throws including cottons, chenilles and velvets
doc_759197430.docx
Acquisition of Primark Croydon by Shoppers Stop. It initially highlights the background of both the companies . It highlights the history of both the companies and the products which they offer to the consumers.
Shoppers Stop’s acquisition of Primark Croydon Store (This is not a real case – it is only an imaginary one for understanding various concepts relating to a cross-border acquisition. The two retail chains used in this imaginary case is just to provide examples of real retail chains). Shoppers Stop is one of the leading retail chains in India and Primark is one of the leading retail chains in U.K. Shoppers Stop is looking at taking over the Croydon store of Primark in London. The Croydon Store The Croydon store has an annual sale of GBP 10 mn. It is located on leased premises and the lease is valid for the next 10 years. It is in a prime locality of Croydon. Primark is expecting GBP 50 mn in a cash deal as consideration for sale of the store. However, it is not opposed to the idea of considering other options for payment of the consideration. This sale will come with stock worth GBP 5 mn. The employees in the Croydon store will be transferred to other Primark stores before the sales. There are other terms relating to restricted use of ‘primark’ name for a few more months etc. Advise Shoppers Stop on funding and mode of acquiring Primark.
For details relating to Shoppers Stop and Primark, please look at their respective websites, namely, www.shopperstop.com and www.primark.co.uk.
However, the following will give you a quick picture about the 2 retail chains.
Shoppers Stop (www.shopperstop.com)
History YEAR 1991 1992 EVENTS We opened our first store at Andheri,a suburb in Mumbai selling only Menswear Ladieswear was introduced
1993 1994 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005
2006
2007
Added Children & non apparels Loyalty Program titled First Citizen was launched. Opened our second store in Bangalore Launched our co-branded credit card for our loyalty members in association with HSBC. Opened our third store in Hyderabad Implemented JDA Retail ERP (a global leader in retail ERP packages). Opened our fourth & fifth store in Jaipur & Delhi Opened our sixth & seventh store at Chennai & Chembur – Mumbai. Acquired Crossword – India 's leading retail book chain Opened our eight & ninth store in Pune & Bandra Opened the tenth store in Kandivli – Mumbai Opened the eleventh, twelfth & thirteenth store in Mulund – Mumbai, Gurgaon & Kolkata Opened our fourteen, fifteen & sixteenth store in Malad – Mumbai, Kolkata & Bangalore Opened our seventeen, eighteen, nineteen & twentieth store in Pune, Juhu – Mumbai, Bangalore & Ghaziabad . Launched M.A.C & Homestop – our home store. Opened out twenty first (Mumbai) and twenty second store in Lucknow . Launched Mothercare in India and our F & B outlets Brio & Desi Café. Bought 45% of Timezone India . Signed a 50:50 Joint Venture with the Nuance Group for Airport Retailing Signed an MOU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing.
Primark's history (www.primark.co.uk) From the first Penneys store in Ireland to the latest flagship store in Liverpool, the Primark story has been one of continuing success founded on a unique combination of fast fashion and lean operations. The beginning In June 1969, the first Penneys store opened in Mary Street, Dublin. Within a year, four more stores were added – all in the Greater Dublin area.
In 1971, the first large store outside Dublin was opened in Cork and by the end of that year there were 11 more stores in Ireland and one in Northern Ireland. Move into Great Britain By 1973, the number of stores had reached 18 in Ireland and Primark began trading in Great Britain with four out-of-town stores. The following year saw the opening of the first UK High Street stores in Derby and Bristol. In the next ten years, 18 stores were added in the UK and nine in Ireland, bringing the number of stores in the UK and Ireland to 22 each. Also in 1984, the first multiple acquisition took place with the purchase in Ireland of five Woolworth stores. Further expansion From 1984 to 1994 a further 13 stores were added in the UK and 12 in Ireland, bringing the total to 66 stores – 32 in the UK and 34 in Ireland. A major flagship store was purchased in 1992 – a 50,000 sq. ft. unit in O’Connell Street, Dublin, as BHS exited Ireland. Acquisitions Primark had a milestone year in 1995 with the development of the UK business following the acquisition of the BHS One-Up discount chain. As a result, 16 stores were added to the UK business, most in the Greater London area, and all of a significant size. The next major development occurred in 1999 with the acquisition of 11 stores from the Co-Op, including Reading. The Reading property, after much refurbishment, also facilitated the much-needed relocation of the UK buying offices. In 2000, C & A retreated from the UK. Primark acquired 11 of their stores which brought store numbers to 108, consisting of 75 in UK and 33 in Ireland. In October 2001, a 75, 000 sq. ft. store was opened in Manchester and conversion of 25,000 sq. ft. of former stockroom space has now increased the sales area of this store to 100,000 sq. ft. More flagship stores and acquisitions In 2001, a 40,000 sq ft store opened in Blanchardstown, Dublin. At the end of 2001, the number of stores had grown to 109 (75 in UK and 34 in Ireland). In 2002, two major stores were opened in Glasgow and Birmingham. In the period of 2004-2005, 14 new stores were opened, adding over 400,000 sq. ft. of retail space. In 2005, six stores were acquired from ‘Allders’, three of which opened in 2006. In July 2005, the acquisition of Littlewoods stores by ABF plc which comprised an estate of 120 premises was completed, of which 41 stores were transferred to Primark. The major programme for the re-fit and opening of 40 of these stores has been completed. Expansion into Spain
In May 2006, Primark opened its first store in Spain – in Plenilunio (Madrid), followed by a second store in Murcia in September 2006. On Thursday 5th April 2007, a 70,000 sq. ft. store was opened on London’s Oxford Street. Primark Liverpool opened on Wednesday 12th September 2007. In November 2007, two further stores were opened in Spain – in Jerez and in Xanadu (Madrid). Three stores opened in Spain in April 2008 – in Bilbao, Islazul (Madrid) and Oviedo – followed by, in June 2008, the opening of Parque Corredor (Madrid). In September 2008, Primark opened in Zaragoza and in October 2008, two further stores in Spain were opened in Asturias and in A Coruña. Primark opened its first store in the Netherlands (Rotterdam) in December 2008. In May 2009, Primark opened its first store in Portugal (Lisbon) and its first store in Germany (Bremen). In December 2009, Primark opened its first store in Belgium (Liège).
Number of Stores Trading at 3rd December 2009 Ireland - 38 Spain - 14 UK - 138 The Netherlands - 1 Portugal - 2 Germany - 2 Belgium - 1 Total - 196
Products Womenswear
Primark prides itself on providing its customers with up-to-the-minute fashion at affordable prices. Our aim is to ensure you get the right "look" within our stores, so if you're looking for the latest fashion in clothing, accessories, footwear or lingerie, look no further than your nearest Primark store Clothing With everything from the latest styles to the essential items that keep you looking chic, Primark has it all. Skirts, trousers, cardigans, dresses, jackets and much more. Lingerie Fun, flirty or functional - it's all at Primark. And of course it's affordable lingerie with the quality that you hope for. Accessories Complete your look with the latest trends in accessories from bags to bracelets and everything in between. Footwear Diamonds may be a girl's best friend but shoes come a close second. At Primark we have an entire range to fulfil your inner fashionista and put the finishing touches to your outfit.
Style for men With a range of brands from Cedarwood State to DenimCo, Primark has the fashion for all occasions. With everything from formal suiting and footwear to a more casual look in denim and T-Shirts. We have everything to put your look together and it's all available in your nearest Primark store. Clothing Our Butler & Webb range will cater for all of your formal needs, with cotton shirts, silk ties and a premium suiting range. Within our Backswing section we offer a full range of sportswear styles, from golfwear to ski-wear. Accessories Every fashion-conscious man needs to top off his outfit with the perfect hat, scarf, wallet or bag. Find everything you need for accessorising your look in our mens' accessories range. Footwear
From formal shoes for that special occasion to our canvas shoes for a more casual look, the Primark mens' footwear range will take you from formal sophistication to street-savvy in no time. Children wear Everybody knows kids grow fast, so keep them in fashion at affordable prices at Primark. Your nearest Primark store has everything you need, whether you are a bouncing baby or a fashionconscious teenager. Girlswear Every girl wants to look her best and at Primark we make no exception for the younger ladies, all the high fashion trends can be found in our Girlswear section, no matter what age you are. Boyswear When you think of boys, you think young and fun. At Primark we think the same and we ensure that all of our boys clothing is not only young and fun but also practical and affordable. Babywear Dress your bundle of joy, whether a boy or girl, in great baby basics to fashionable outfits. Everything your heart desires and your baby needs can be found in your nearest Primark store. Home Products At Primark we know that Home is where the heart is, so if you're re-decorating or just want to add something a little special from fragranced candles to velvet throws, check out our homeware products to bring that little bit extra to your home. You'll find sumptuous bed linen that can keep you cool in the sumer and warm in the winter, including complete bed sets, duvet covers, two-pack hollow-fibre pillows and 100% cotton percale sheets. We have a range of duvets available in single, double or king sizes. For the bathroom you can buy cotton towels in 11 colours and two-pack reversible bath mats. To enhance the pampering you deserve, we also have candles, all delicately fragranced in seasonal scents and colours. And you can give your living room that feeling of class with products from our range of cushions and throws including cottons, chenilles and velvets
doc_759197430.docx