- As price-led competition intensifies, it is likely that FY 21 SSSG maybe muted. Furthermore, store expansion continues to lag market expectations,
- As recent trends suggest, DMart consumers are likely to gravitate to online fulfillment (DMart Ready). Margin dilution from DMart Ready may be higher than the market estimates due to cannibalization of in-store sales
- Online grocery in India will be best served via a decentralized model as it offers benefits of express delivery for groceries and low fulfillment costs.
- Avenue's centralized fulfilment model may not be the most optimal model in the current landscape.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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