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Amazon deal to drive online sales, tap buyers in non-metros: Shoppers Stop

Moreover, catalogue will have fresh season products to avoid price conflicts as online sales in India is driven by discounted pattern

Press Trust of India  |  New Delhi 

Shoppers Stop
File photo of Shoppers Stop's branch

The partnership with e-commerce major would help tap customers from non-metro markets and scale up its financial performance, a top official of the Mumbai-based retailer said.

The partnership would allow list its entire portfolio of over 400 brands on in and vise versa experience centres will be created across the physical network of the K Raheja Corp Group's retail arm.

The US-based retailer is buying around 5 per cent stake in for Rs 179.26 crore as part their partnership deal, which would allow access online market and 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," 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 in, what it really means is that we are giving our power of assortment and catalogue to 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, Experience Centers will be created across the network of 80 stores to bring in the touch and feel aspect on in assortment.

In FY2016-17, had a revenue of Rs 3,648.04 crore and had posted a net loss of Rs 19.94 crore.

First Published: Sun, September 24 2017. 16:52 IST