Trent Hypermarket to exit Amazon Prime Now

By: |
Mumbai | Published: September 5, 2018 2:48:13 AM

Trent Hypermarket was selling its products on the Amazon Prime Now platform, but hasn’t received the kind of response it had been hoping for.

Trent Hypermarket to exit Amazon Prime Now

Trent Hypermarket, a joint venture between the Tata Group and Tesco which operates in the Star Bazaar Hypermarket and Star Market formats, has decided to exit the Amazon Prime Now platform.
The company now plans to expand its online presence through GrocerMax, which it acquired in June 2017.

Trent Hypermarket was selling its products on the Amazon Prime Now platform, but hasn’t received the kind of response it had been hoping for.

Trent executive director (finance) and CFO Venkatesalu P said the retailer had tied up with Amazon Prime Now on a trial basis. “We want to exit the platform as we want to expand GrocerMax,” he said on the sidelines of the Retail CFO Summit.

Trent Hypermarket saw its losses widen to `90.50 crore in FY18 from `52.49 crore in FY17. The company continues to report losses even after 15 years of its operations. Industry experts said the synergies between online and offline retailers are increasing and there is a renewed interest in the sector after the Walmart-Flipkart deal.

However, it is not necessary that all tie-ups will work. Deloitte India partner Anil Talreja said: “While some tie-up will work, some may not work too. Most retailers are experimenting and also in a learning phase and trying to find synergies to become successful.”

However, a senior official of Future Group who declined to be identified said the company will continue selling on the Amazon Prime Now platform, but the number of stores it had there has been reduced to 20.

“We have removed a few of the stores from Amazon where the response was not good. We get a turnover of around `2.5-`3 crore on the Amazon platform and will continue selling there.”

Overall, the retail sector is emerging as one of the largest sectors in the economy and is expected to grow to $1.1 trillion by 2020. The sector has registered a CAGR (compound annual growth rate)
of 8.79% in the last 10 years.

To incentivise international retailers, the government has allowed 100% FDI via the automatic route in e-commerce entities engaging only in the business-to business (B2B) model of operations, according to a Deloitte report.

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