Dmart's online business crosses Rs 2000 crore sales mark, losses widened to Rs 194 crore
Avenue Supermarts, the operator of DMart retail chain, saw sales at its online grocery unit cross Rs 2000 crore in FY23 but losses widened as it expanded into newer geographies. Sales for Avenue E-Commerce (AEL), its online subsidiary was Rs2202 crore, a 32% jump while net loss widened to Rs 194 crore, as per its latest annual report. The online business brand, DMart Ready, had posted a loss of Rs 142 crore on sales of Rs 1667 crore in the previous fiscal year.
«During the financial year 2022-23, it expanded its service coverage to include 10 more cities — including Chandigarh, Jaipur, Chennai and Ghaziabad. Our current service footprint includes a total of 22 cities,» the company said in its report. «Avenue Supermarts has invested about Rs 713 crore in its online subsidiary that started operations six years ago» added D'mart, India’s biggest retailer by market capitalization.
AEL also operates a small-format grocery store under the brand name, DMart MiniMax. It had two DMart MiniMax stores until FY22, but added 13 more last fiscal. Unlike grocery startups Amazon and BigBasket, which rely on a delivery-based distribution model, DMart’s online venture operates a hybrid model with delivery centres in areas where it has small stores from where customers can also pick up products they have ordered online.
With annual sales of Rs41833 crore, DMart, runs 324 stores, generating revenue of Rs 31,096 per square foot, almost three times that of its rivals in India. The retailer also had 49 distribution centres and 10 packing centres during FY23. Avenue Supermarts chairman Ramesh Damani, in the annual report said, the global macro headwinds notwithstanding, India remains a bright spot and in comparison to other subcontinent
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