DMart Confident on Long-Term Growth Despite Rising Quick Commerce Competition
Avenue Supermarts (DMart) has reiterated its confidence in its long-term growth strategy, emphasizing that the company remains focused on delivering value to customers even as competition from quick commerce players such as Blinkit, Amazon, and Flipkart intensifies. During its Annual Analyst Meet held on July 28, 2026, the management discussed store expansion, private labels, quick commerce, and long-term growth opportunities across India.
Quick Commerce Competition Not a Major Threat
One of the key discussion points during the analyst meeting was the rapid expansion of quick commerce companies into Tier-1 and Tier-2 cities. Analysts questioned whether aggressive expansion by Amazon, Flipkart, and Blinkit could impact DMart’s like-for-like (LFL) sales growth.
Managing Director and CEO Anshul Asawa said the company does not see quick commerce as a long-term threat to its business model. According to him, organized retail penetration in smaller cities remains significantly lower than in metro markets, leaving substantial room for growth for both physical retail stores and online commerce.
He added that DMart will continue to focus on its core value proposition of offering customers the best prices and everyday value, particularly in Tier-1 and Tier-2 cities where price sensitivity remains high.
Focus Remains on Everyday Low Prices
DMart emphasized that its competitive advantage continues to be its Everyday Low Price (EDLP) strategy. Management believes that regardless of how competition evolves, customers continue to value consistent low pricing and efficient store operations.
The company also stated that it has no immediate plans to enter ultra-fast delivery formats. Instead, it remains committed to improving its existing DMart Ready business while maintaining operational efficiency.
Private Label Strategy Remains Unchanged
Responding to questions regarding private labels, the management clarified that the company’s strategy continues to follow its long-standing 20-20-20 principle.
According to DMart, a private-label product should:
- Offer customers at least a 20% price advantage.
- Generate approximately 20% higher margins than benchmark products.
- Achieve meaningful customer adoption and sales volumes.
Management stressed that private labels will only be expanded where they create genuine value for customers rather than merely increasing shelf space. Product assortment continues to be driven primarily by customer demand rather than internal targets.
Strong Relationships with FMCG Companies
Analysts also questioned whether FMCG manufacturers were shifting their attention toward quick commerce platforms.
DMart’s management dismissed these concerns, stating that relationships with major FMCG companies remain strong. In many cases, DMart has become one of the largest retail partners for leading consumer goods companies.
The company noted that it continuously tracks consumer preferences across general trade, e-commerce, and quick commerce. As brands gain traction, DMart quickly adds successful products—including selected direct-to-consumer (D2C) brands—to its store network.
Store Expansion to Continue
Management highlighted that store expansion remains a key growth driver. While DMart traditionally prefers owning store properties, it is increasingly open to long-term lease arrangements wherever they provide faster market access.
The company also indicated that manpower is not a constraint for future expansion. Instead, the availability of suitable land parcels and strategically attractive locations remains the primary challenge in opening new stores.
Positive Outlook for Growth
Looking ahead, DMart expects its like-for-like sales growth during the coming financial year to remain broadly in line with recent performance. Although management acknowledged that market dynamics can change over time, it remains optimistic about the growth opportunities available across India’s expanding organized retail sector.