New Delhi-based grocery startup The New Shop is in advanced talks to acquire the 24Seven retail chain from Godfrey Phillips India for a strategic rebranding and expansion. The acquisition follows a court verdict allowing Godfrey Phillips to exit its unprofitable retail segment. Established in 2019, The New Shop operates 160 stores across 35 cities with a 24-hour model. 24Seven, which once boasted 130 outlets, has struggled with performance issues, reporting INR 403 crore in FY24 revenue. If finalized, the deal will integrate 24Seven's locations into The New Shop's omnichannel network, enhancing their market presence.
The New Shop, a grocery convenience startup based in New Delhi, is reportedly in advanced talks to acquire the 24Seven retail chain from Godfrey Phillips India. If the acquisition goes through, The New Shop plans to rebrand all existing 24Seven outlets across the country, further expanding its reach. This announcement follows a recent court verdict granting Godfrey Phillips approval to exit its loss-making retail business.
Founded in 2019 by siblings Aastha and Charak Almast, along with Mani Dev Gyawali, The New Shop has quickly established itself in the grocery sector. Currently operating 160 stores in 35 cities, the startup focuses on an omnichannel strategy that includes a mix of physical stores and online sales. Their stores are open around the clock, catering to customers looking for groceries, personal care items, and ready-to-eat meals.
The 24Seven brand has had a long presence in the Indian market since its inception in 2005, starting with its first outlet in Delhi. At its peak, the chain operated around 130 locations, including full-format stores and kiosks primarily in Delhi-NCR and Chandigarh. However, Godfrey Phillips announced its intention to exit from the retail sector earlier this year due to long-term performance issues and changing market conditions. The company's retail division reported a revenue of INR 403 crore in FY24, which constituted merely 7.6% of its overall revenue, highlighting the struggles that led to this decision.
Godfrey Phillips had initially explored other potential buyers for the 24Seven chain, engaging with prominent names such as Tata Trent, Reliance Retail, and Avenue Supermarts. However, the discussions did not materialize, ultimately leading to negotiations with The New Shop, which appears to be a strong contender given its growth trajectory and business model.
The acquisition deal, when finalized, will not only see 24Seven stores rebranded as The New Shop but will also maintain the 24-hour operational model that has been a hallmark of both brands. This operational continuity is significant in the highly competitive retail environment, where convenience plays a critical role in customer retention.
As The New Shop moves forward with this acquisition, it will be interesting to see how the integration process unfolds and whether they can successfully leverage 24Seven's existing market presence to enhance their offerings. With retail dynamics rapidly evolving in India, this acquisition could mark a new chapter in the grocery convenience sector, especially as players continue to adapt to changing consumer preferences and market conditions.
The success of The New Shop's potential acquisition of 24Seven could signal an important shift in the retail landscape, as companies pivot to meet customer demands for more accessible and convenient shopping experiences. As the talks progress, the industry will be watching closely to see how this strategic move unfolds and what it means for the future of grocery retail in India.
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