Shoppers Stop Ltd. said it has not sold merchandise on Amazon India since the start of February after the government's Dec. 26 order barred online retailers from selling products of companies in which they have a stake.
“Due to new the DIPP [Department of Industrial Policy and Promotion] note-2, we have not been able to do business with Amazon for the last few weeks, in fact since the beginning of February,” Rajiv Suri, managing director at Shoppers Stop told BloombergQuint on the sidelines of Retail Leadership Summit. “We are waiting for the government's clarification.”
In 2017, Amazon.com NV Investment Holding LLC picked up a 5 percent stake in Shoppers Stop for Rs 179.26 crore.
The brick-and-mortar retailer witnessed a 45 percent revenue growth from online sales for the three months ended December but its overall contribution to the company's revenue was below 2 percent, Suri said.
Shoppers Stop expects single-digit growth in revenue in the ongoing quarter and expects the same momentum to continue even in the next fiscal.
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