The US-based retailer Amazon is buying around 5 per cent stake in Shoppers Stop for Rs 179.26 crore as part their partnership deal, which would allow Shoppers Stop access online market and Amazon a display place for its merchandise sold online.
"If I am able to drive my online sales growth and brick & mortar sales growth at much higher pace, it will directly help financial numbers," Shoppers Stop Customer Care Associate & Managing Director Govind Shrikhande told PTI.
Terming it as a "win-win for both the formats", he added that its step in the direction of omnichannel, where online and offline systems are integrated.
"We would collaborate and get our entire catalogue of products on Amazon.in, what it really means is that we are giving our power of assortment and catalogue to Amazon.in and in return we would actually get the massive reach of customers because they have a tremendous reach of multiple customers in multiple cities, while our presence is smaller cities tier II & III is very weak," Shrikhande said.
Both firms would also work together in multiple marketing programmes.
On being asked as to whether the synergy between the two would also reflect in sourcing, he said: "I do not think as of now."
Moreover, their catalogue would have fresh season products to avoid price conflicts as the online sales in India is driven by a discounted pattern.
"The catalogue would have a fresh season merchandise and that is never discounted. We see the discounted product on three to four season old product and not the new season product," Shrikhande said.
According to the joint statement issued by the firms yesterday, Amazon Experience Centers will be created across the network of 80 Shoppers Stop stores to bring in the touch and feel aspect on Amazon.in assortment.
In FY2016-17, Shoppers Stop had a revenue of Rs 3,648.04 crore and had posted a net loss of Rs 19.94 crore.
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