~2.5 Hrs. conference call with Analysts/ Institutional Investors : Recording @ DMart (Analyst – Investor Meet Audio Recording – 26.07.2023)
My takeaways:
- Apparel not doing well | Reset in Progress- Merchandise must reflect products that can replace buying from local Bazar, particularly daily in-house wears | Key issue – People. If unable to fix with time, many other new categories are available to occupy the space.
- As of now, capability to do 40 stores a year. Acquiring pan India real estate along with local approvals is a time-consuming process.
- Growth outlook: Judge from past. Used to be 30%+ which has become 18~20% in recent times. Intervene in the stores whose SSSG falls below inflation.
- Optimistic about eCom grocery business, particularly in densely populated cities. Confident not to lose much money. Addresses need of a different set of customers. Tougher to run than brick and mortar.
- Pharmacy: WIP. Need to open at few locations to judge the effectiveness of the initiative. Ran pharmacy in past at Dmart, and confident that it will work out as it is a natural extension.
- Core focus is to introduce low margin categories: Require least ambience and customer connect.
- Will sacrifice PAT to fight of competition.
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