Pantaloon v. Shoppers’ Stop

Shoppers’ Stop and Lifestyle dragged their rival Pantaloon to court as they were miffed with an advertisement issued by the flagship company of Kishore Biyani owned Future Group that offered 10% extra discount to their loyal customers vide an advertisement issued in The Times of India, New Delhi, dated 28th June, 2008. The complainant retailers had accused Pantaloon of trademark violations and unfair business practices. All the three parties operated department store chains in lifestyle segment.

Pantaloon’s ‘Central’ mall at Gurgaon had offered 30% discounts to its customers over the weekend. Loyalty card holders of competing retailers like Shopper’s Stop, Lifestyle and Westside, were lured by Pantaloon by offering an additional 10% discount on select brands of apparel. The advertisement asked such customers to “present their membership card to avail this offer.”

Loyalty cardholders were mainstay of business for most retailers. Shoppers’ Stop had a highly popular loyalty card programme branded “First Citizen.” According to analysts, more than two-thirds of Shoppers’ Stop’s apparel business was accounted for by its loyal customers.