Here in Bangalore, malls have been closed for a week which I guess will be extended further. DMart being standalone stores will not be affected and will gain share. Most others like Spar, Big Bazar are present predominantly in Malls.
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While CORONA has crushed markets⌠here is another view which may lead to better Q4 for dmart
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Bad companies are destroyed by crisis, good companies survive them, great companies are improved by them.
âAndy Grove
I saw this quote in twitter today and canât resist to share in relation to this post of Dmart business.
(If moderators think it is inappropriate, it can be deleted)
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This is a very generic quote (and statement). Today every retailer is doing this. Big Bazaar, Spencers (in Calcutta atleast) are doing home deliveries. So, what is the differentiator here?
Statement was not in comparison with same vertical of business. It was in relation with overall situation, when everyday getting plant/business closure notification for other companies Dmart is open with such long queue.
Again, thats true of every kirana store in India today. Whatâs special?
Special is the Grocery retail sector which is under essential service , at least not closed down unlike other sectors in one of the greatest disaster in Humanity .
company is special among the sector if you check the unit economics .
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Same thing I explained. It is not a comparison between kirana-Dmart or Spencer-Dmart. It is comparison between different vertical of businesses.
But he is again asking âwhatâs specialâ. So stopped explaining 
.
Well as a moderator you can delete if you feel it is inappropriate. I already mentioned in my post. I donât have any issue.
What I am trying to understand is every grocery retailer is open and the organised ones are doing home deliveries. Even grofers and bigbaskethave started delivering in places.
So, was trying to understand what special initiative dmart is taking that makes it stand out amidst competition. From your answers or the lack of it I conclude basically nothing. Which is okay. The other quality of the business is well k own and also well articulated throughout the thread.
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While we are talking about so many positives, this article shows that Dmart & many others might see pressure on their topline and bottomine. On one hand sales are down as they are just allowed to operate essential grocery during this lockdown, which is very low margin business. Dmart used to get major contribution (atleast in terms of % margin) from other apparels etc where profit margin is much better than grocery.
The topline will get impacted because only Grocery sale is permitted as essential item. The Bottomline gets negative impact as high margin items are not being sold in lockdown period and on top of that manpower cost will increase due to hardship allowances. Dmart has confirmed that manpower cost is almost doubled during this period.
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Yes As I said , keeping cost low is very tough in this situation
Can we also take a moment to look at the positive that while all the other businesses are shut, Dmart being essentials is still getting relatively less impacted as compared to complete shut down businesses. Having said that I do agree that their are negatives but wouldnât one prefer business doing relatively well during crisis, keeping the cash flowing?
Agree, but I have tried to analyse impact on our companyâs business while your ask is COMPARE with other business. If you have some key points which helps us analyse the impact, feel free to share for benefit of community.
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I suppose that the business models of grocery retailers will get more fine-tuned for online delivery after the crisis gets over. Also, more & more people will become accustomed with the leisure of getting essentials delivered at doorstep.
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Not all grocery shops are open. In my area in Bangalore there are many standalone stores which are not open (maybe due to the requirement of enforcing social distancing, sanitisers etc which translate into security costs) but Tata Star Market is open. Wait times is an hour at-least since they are allowing only 20 customers at a time.
Looks like DMart Ready has started operations outside Mumbai. I checked in the app and it is showing delivery is available for my location in Bangalore (560068). Due to lockdown, delivery slot though is not available.
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Dmart Ready has started delivery (or beta testing) at Bangalore and Hyderabad apart from Mumbai and Thane.
So much was spoken about Amazon, Flipkart, Bigbasket and Grofers. None of them deliver until now and that too in select cities and essential items only. Bigbasket is worse still by taking orders and cancelling them. The amount goes to wallet and getting back to source payment mode is a headache.
I had to do grocery run today and found that Big Bazaar is closed since lockdown. I live in a tier 2 city in Tamil Nadu. Dmart is open and doing brisk business.
Dmart are open even if incurring more employee and other cost (Dmart CEO: âWe took a call that it is not about profits and even if we are losing money we have to make products availableâ) when others are not able to operate. They claim their delivery slots are fully booked. They donât take orders and cancel. They have started delivery (or will soon do) in more cities. They are doing other small things like bulk delivery and making products available (local kiranawala wonât have all the normal items we want).
Dmart is not doing anything special, IMHO. When the tide turns we when know who will have more loyal customers. 
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