eCommerce Push: Shoppers Stop connects four distribution centres with Amazon.in

Company will also open assortment from 50-odd stores gradually for shopping on Jeff Bezos owned eMarketplace. Management expects double-digit revenue contribution from online sales going forward

In its effort to push online sales as part of the company's omni-channel strategy, K Raheja Corp’s listed retail arm Shoppers Stop Ltd has connected all its distribution centres and 50-odd physical retail stores with the Indian arm of global eMarketplace operator Amazon, which is owned by Jeff Bezos. The company management has been talking about this approach for a while now however the COVID-19 induced lockdown and the ensuing business challenges ensured these plans were taken up on a war footing and fast tracked to hit the market at the earliest. 

B S Nagesh, chairman and non executive director, Shoppers Stop Ltd, said the move will help the company hit a double-digit figure in terms of revenue contribution from online sales. “We have been talking about our partnership with Amazon. It's been quite a struggle for us in the last few quarters. But now I'm happy to say that, we as an organisation now are fully connected,” he Nagesh during an earnings call earlier today.

As of last week, all four distribution centres of Shoppers Stop have been connected to Amazon. This apart, the retailer will, one by one, open up the assortment from its 50-odd physical stores that are connected to Amazon. “As of now we have just opened private brands, watches and a few other brands. Over the next three to four weeks, we will add up and open up the full assortment of what Shoppers Stop has across the country onto the Amazon site,” said Nagesh. 

The COVID-19 pandemic has created havoc on apparel and lifestyle retailers over the last couple of quarters in the current fiscal. And as brick and mortar retailers come to terms with the market situation post the unlock phases, industry players are going aggressive on strengthening their eCommerce sales channel(s). As a result, all efforts are being directed to ensure online sales set the cash registers ringing thereby helping retailers make up for the loss of business in the lockdown period.

Going forward, customers looking to shop from Shoppers Stop will be able to access the product(s) and get it delivered directly from the stores. “I think this will really enhance our capability of serving customers. Our eCommerce sales have grown by more than 50%. And our share of eCommerce has increased from 2% to 8% in this quarter. The way things have gone in the first two weeks, I'm very hopeful that we should be hitting a double digit figure very soon,” said Nagesh.

In May last year, Shoppers Stop had said that it will relist and sell its products on the e-marketplace operated by Amazon India. This was in response to the new rules for foreign direct investment (FDI) in e-commerce retail disallowing investee companies from selling on emarketplace(s) operated by the investor or subsidiary firms. In September 2017, an investment firm of the global e-retail giant Amazon.com NV Investment Holdings LLC acquired a minority stake of 5% in Shoppers Stop for Rs 179.26 crore. As the new rules kicked in, the fashion and lifestyle products retailer had to withdraw from Amazon.in, in February 2019. 

In another development, the company has appointed former chief executive officer of Tata Group’s retail arm Westside, Venugopal G Nair as managing director and chief executive officer, Shoppers Stop Ltd. Nair is expected to assume office in the first week of November 2020.

(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)