New Shop Acquires 24Seven: A Strategic Move in Indian Retail

24Seven is being considered for acquisition by The New Shop, an emerging Indian retail business. The New Shop can profit strategically from this merger in several ways. First, it would quickly grow its network of outlets since 24Seven's large chain of convenience stores would offer a ready-made infrastructure, allowing increased market penetration soon. Furthermore, 24Seven's tried-and-true 24x7 operational model, which has already succeeded in India's retail industry, can assist The New Shop in providing convenient and reliable client service. As of August 2024, through advanced negotiations, Godfrey Phillips India's retail business, 24Seven, was being acquired by New Shop, a grocery convenience store startup. All 24Seven locations will become The New Shop and stay open around the clock if the deal closes.

24Seven announced its exit from the retail chain

After receiving court approval to shut down the 24 Seven retail locations, Godfrey Phillips left the retail industry. The board announced the departure on 12 April and gave three reasons: long-term performance, market conditions, and strategic alignment. Godfrey Phillips was given permission by the Delhi High Court in July of this year to sell the retail company 24Seven. Executive Director Samir Modi, who also has an inheritance dispute with Godfrey Phillips' MD Bina Modi, disagreed with the board's decision to sell the retail division.

Godfrey Phillips India, the parent company 24Seven, announced its exit from the retail chain. As a result, the popular spot for people looking for food, cigarettes, and late-night snacks may need to find new investors quickly or close. The tobacco company notified the exchanges of its intention to completely dissolve the retail business division after experiencing cumulative losses that resulted in a negative net worth as of 31 March 2023. The report states that the retail division's income for FY23 came to Rs 396 crore from operations. This represents around 9.3% of the company's overall revenue from operations managed by Modi Enterprises and the retail division.

24Seven was introduced in 2005

In 2005, 24Seven was introduced, claiming to be India's first 24-hour convenience shop. The KK Modi Group company owns the retail chain 24Seven, which has about 145 stores in Hyderabad, Delhi, NCR, Punjab, and Tri-City. The shop offers prepared meals, drinks, music and films, publications, cosmetics and personal hygiene products and ordinary groceries.

Is 24Seven buying the New Shop company?

According to a 3 September CNBC-TV18 story citing people familiar with the matter, Godfrey Phillips has signed the term sheet for selling retail company 24Seven with retail startup player New Shop. Phillips hopes to conclude the purchase by the end of September. All 24Seven locations, open twenty-four hours a day, seven days a week, will adopt the name The New Shop. Around-the-clock retail operations are subject to state regulations and call for particular municipal licences. The new shop locations that are now open have already followed these rules.

The New Shop was established in 2019 by the siblings Aastha and Charak Almast and Mani Dev Gyawali. It has 160 locations in 35 Indian cities. In New Delhi, this firm uses an omnichannel strategy and sells various goods, such as over-the-counter medications, snacks, beverages, personal care products, pet meals, and home care items. The company operates its outlets around the clock under a franchise-owned, franchise-operated business model.

Due to cash flow issues, Godfrey Phillips closed all 24 Seven outlets last week. The chain primarily operated in Chandigarh and Delhi-NCR, with a small number in Hyderabad, 90 full-format stores and 40 kiosks.

Using 24Seven's well-established 24x7 operational model and vast store network, The New Shop's acquisition of 24Seven has the potential to consolidate and extend its footprint in the Indian retail sector. If the purchase goes through, The New Shop, which has early backers like Huddle Ventures, Good Game Ventures, and Anthill Ventures, is expected to develop significantly.

Is India shutting 24Seven?

Godfrey Phillips India Ltd, a tobacco maker, has discontinued its retail business segment, 24Seven, due to losses and a negative net value as of 31 March 2023.

Is 24Seven closed? Why?

The popular late-night convenience store in India, 24Seven, may close or look for new investors after its parent firm, Godfrey Phillips India, announced it was leaving the retail business segment. As of 31 March 2023, the company's net value was negative due to cumulative losses.

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