Shoppers Stop reviews airport venture with Nuance Group

Shoppers Stop is reviewing its joint venture with Nuance Group through which it had forayed into duty-free airport retailing. The reason behind this review is not much scope for cash flow and profitability. Zurich-based Nuance Group was awarded the duty-free contract for Bangalore International Airport and Mumbai International Airport.

Shoppers Stop MD Govind Shrikhande called it a regular review as they are presently reviewing all formats and all businesses based on their profitability. So the airport business also came under review. It is a tough business, points out Shrikhande, and the company is not fully equipped to handle it. So, there is not much scope for cash flow and profitability.

He reasoned that airport retailing is a different ballgame from airport retailing as travellers don’t go to airport to shop. He didn’t quantify the loss faced by the company.