THE DMART INTERVIEW
Key Takeaways
1) On Structural Changes in Modern Retail:
“Quick commerce that could have huge scale and digitally enabled micro enterprises which can reach their small tiny audiences at very low costs”
2) Impact of new value retailers on sales mix:
“Impact to us is marginal and specific to a certain category such as apparel”
3) On Pace of growth:
“External world is tracking how many more stores DMart is adding every year. We worry about how well the new stores added are being managed. However, having said that, we have to add as many stores as possible and as fast as is possible.“
4) Availability of sufficient real estate to grow?
“I think digital commerce is showing the way. It’s quite clear what we cannot do fast, they can. Quick commerce is a significantly smarter format than digital platforms. More relevant for India.”
5) On Digital
- Digital commerce is the next big challenge, both market place & quick com
- While DMART will compete, the sudden disruption of General Trade that needs to be keenly watched
- There will be significantly more digital before modern trade evolves and matures.
- Moats of every business will be slightly weaker than pre-digital times.
- Entry barriers reduce for most retail businesses. That could reduce profit pools.
6) Parameters for Choosing Assortment:
- Revenue, inventory turns, asset turns, gross margins, opex, pilferage, write-offs, depreciation, net margin, ROI etc
7) On growth in India into Tier 2 and beyond?
- It’s a multi decadal expansion opportunity.
8) Goals for Now:
- Adding new stores for our business and looking for moats in the E-Commerce business & growing it
Also, Here’s where you can read the entire text of the interview:
https://lnkd.in/dwudpNd3
#DMART DMart - Avenue Supermarts Ltd #StockMarket #Exclusive #FMCG #Retail #Insight #QComm #Digital #FMCGisLife
#CNBCTV18Exclusive | In a rare interview with Mangalam Maloo, Neville Noronha, CEO of Avenue Supermarts (D-Mart) says quick commerce could have huge scale. Adding new stores and looking for moats in the e-commerce business & growing it remain the company’s key objective. Key highlights here.
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