The September quarter (Q2FY25) update of Avenue Supermarts Ltd, which owns and operates supermarket chain DMart, was muted. Revenue from operations at ₹14,050 crore rose 14% year-on-year in Q2FY25 compared with 19% a year earlier. Average store count increased 12% in Q2FY25 and sales per store grew just about 2%. Consequently, the stock fell by 4% on Friday. Even after discounting the overall weak sentiment in the Indian stock market lately, the stock price reaction reflects the disappointment of investors.
While DMart’s growth rate may have slowed, it is too early to write off value-retailing even though quick commerce is gaining ground in urban areas. The term value retailing refers to buyers attracted by discounted prices, whereas quick commerce consumers look for more convenience even at higher prices, including delivery charges. Value retailing is here to stay as there are still a lot of price-conscious customers. …
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