New York-based Foot Locker, one of the world’s leading retailers of athletic footwear and apparel, is expected to enter India through a franchisee arrangement.
Industry sources say that the group is in talks with Shoppers’ Stop, but the company’s PR official, when contacted over the phone, denied the news saying, “As of now, I can’t comment anything.”
Foot Locker retails multiple sportswear brands and cannot qualify to enter the Indian market through the latest regulation that allows only single-brand retailing through 51 per cent foreign direct investment (FDI).
Hence, $5.75-billion Foot Locker will have to enter into a master franchise agreement with an Indian company to show its presence in the country.
Allowing up to 51 per cent FDI in multi-brand retailing of sports goods was under consideration of government, but no development has taken place on this front.