8 Apr 2024
By 2025, DMart’s target market size is expected to rise to $2.3 trillion and its market share to 5% from the existing 1%.
By March-end, DMart announced a new line-up of stores across the country, an increase of 13% annually. Its revenue spiked 20% year-on-year to ₹12,393 crores, with a 7% increase in revenue per store and a 5% jump in revenue per square foot.
DMart offers low prices brought in by lower operating costs and quick inventory turnover.
First, it buys in bulk from its suppliers at heavy discounts. It offers a quick payback cycle of approximately 7-9 days, compared to the average 30 days in the retail industry. Moreover, opening a group of stores in the same region reduces transportation costs and attracts better deals.
Second, DMart doesn’t rent; it buys its properties, thus removing rental expenditures. It doesn’t spend much on marketing; instead, it uses word of mouth.
Its focus on affordable pricing further strengthens its position in the FMCG domain.
Source: Market Brew by Tata Fintech