Why do you think so?
Competition was always there, initially it was from Future Group and now Reliance.
What exactly has changed?
Dmart and Spencer has vastly different operating model.
Dmart stores are usually 30000 sqft while Spencer stores are 4000 to 8000 max.
So they won’t be able to stock all the product categories.
Dmart sells fmcg / daily need (essential products) at cheaper price and get better margin at apparels & footwear (discretionary products). Thus achieving a healthy gross margin.
If they can’t stock all the products then the current model won’t work.
From start / initial days, Reliance always had far more than Dmart because they operate on different strategy.
Dmart has choosen hypermarket model (going wide) where it offers limited variety in almost all the categories (10 shampoos / 10 soaps / 10 hand wash etc etc)
While Reliance has chosen to become specialist in every segment (going depths / deep).
That’s why they have sperate stores for apparel, footwear, jewellery etc.
So number of Reliance stores will always be multiples of Dmart.
I don’t see how peer to peer comaprision is possible between Reliance and Dmart.
| Subscribe To Our Free Newsletter |
