Department store chain Shoppers Stop may look at reassessing its online and omnichannel play after the recent changes in the Foreign direct investment (FDI) policy on ecommerce, multiple sources told CNBC-TV18.

The retail chain that also runs Crossword, is in the process of reviewing the clause suggested in the FDI policy on e-commerce with respect to exclusive sale of products on the platform, said people familiar with the matter.

Amazon picked up 5 percent stake in Shoppers Stop for Rs 180 crore in 2017. Shoppers Stop had also entered into an exclusive partnership with Amazon Seller Services to sell all its private labels and brands. However, the new FDI norms say that “an entity having equity participation by e-commerce marketplace entity or its group companies ... will not be permitted to sell its products on such a marketplace."

Therefore these changes are likely to impact the ongoing integration with Amazon. The companies are engaging with consultants and legal experts to review implications of the new FDI changes on the current structure.

As part of the deal with Amazon, experience zones have been set up in some Shoppers Stop outlets. The sources said that the company is reviewing applicability of norms on Amazon kiosks set up in Shoppers Stop stores.

With omnichannel revenues accounting for only about 1-2 percent of the retail chain's sales, the department store chain has been working on accelerating this going forward.

The company has said that omnichannel could contribute to 10 percent of revenues over the next three years. To achieve this scale within the existing policy framework, the company will have to reassess its online and omnichannel strategy, added the sources.

In a response to CNBC-TV18's query, Shoppers Stop said it "offers multi-channel access to ease the shopping experience for customers as we continue our efforts towards being customer-centric which is the key to our position as retailers. We are currently evaluating the guidelines and are committed to comply with the policy.”

However, Amazon refused to comment.

First Published:Jan 8, 2019 11:45 AM IST