Flipkart has begun exploratory discussions with Kishore Biyani to pick up an 8-10 percent stake in Future Lifestyle Fashions Ltd (FLF), the listed fashion arm of the Future Group.
Online and offline retailers are entering each other’s territories as part of an omni-channel strategy and to combat shrinking retail margins.
Top management from both sides met last week in Mumbai to discuss the matter, according to people aware of the development. Followup meetings are due post-Diwali, they said.
Amazon picked up a 5 percent stake in Shoppers Stop last month — its first investment in an offline retailer in India — to expand its base into smaller towns.
Future Lifestyle is one of the largest branded apparel retailers in India with total retail space of 5.4 million sq ft across 400 stores in 90 cities and a diversified portfolio of 30 brands straddling different segments and price points.
It has large department store formats like Central and Brand Factory as well as specialist niche formats such as Planet Sports.
Source: Economic Times