Fashion retailer Shoppers Stop has said it is reviewing the joint venture with Nuance Group, under which it had forayed into duty-free airport retailing, as there is not much scope for “cash flow and profitability“.
“We are always reviewing all formats, all businesses based on their profitability on long-term basis. Hence, we are also reviewing our airport business,” Shoppers Stop Managing Director Govind Shrikhande said.
Shoppers Stop’s Zurich-based JV partner Nuance Group was awarded the duty-free contract for Bengaluru International Airport and Mumbai International Airport (fashion, luxury and lifestyle).
“We believe it is a tough business... We are not completely equipped to handle in full sense because we have been a domestic player, and our domestic operations we understand well... there is not much scope for cash flow and profitability,” he said.
Losses To a query on the losses faced by the company in duty-free airport retail venture so far, Shrikhande said: “Can’t really quantify, but not that large that you have to look at only as an exit path. If you look at our domestic airport operations, they are doing pretty well.”
