Shoppers Stop, the country’s oldest department store chain, said it is seeking more clarity on whether the government’s latest foreign direct investment (FDI) guidelines could affect its stake sale to Amazon.
Nearly two years ago, e commerce giant Amazon acquired a 5% stake in through foreign portfolio investor (FPI) route along with a deal to use each other’s network.
“We are awaiting more clarity of Amazon’s investment in our company but there has been no change in the partnership yet. The investment is not through their retail arm and more than 95% of our sales are from our physical stores,” said Shoppers Stop (SSL) managing director Rajiv Suri.
The US firm has already opened six Amazon Experience Centers or kiosks, which showcase its exclusive products, within Shoppers Stop outlets.
Shoppers Stop will receive commission on sale of Amazon products from its shops, plus rentals. Under the deal, Shoppers Stop also got to use Amazon network to reach online shoppers.
The K Raheja Corp-promoted retailer also said it is exploring how they can integrate Amazon’s Prime membership in their brick-and-mortar stores operations.