FY20 turned out to be a mixed bag😑 for Avenue Supermarts, which runs the country’s most valuable retailer, D-Mart.
The online sales of its four-year-old e-commerce subsidiary, Avenue E-Commerce more than doubled🤟 during this period to Rs. 354 crores.
However, at the same time, its net loss in this segment also jumped 57%☹️ to Rs. 80 crores.
Notably, the company operates its online business, “DMart Ready” ☝️only in Mumbai.
A different strategy
DMart Ready employs a different business model🤔 than more established grocery delivery start-ups such as Amazon, BigBasket and Grofers.
While the latter rely on delivery-based🚚 distribution model, DMart has multiple delivery centres or pick-up points in catchment areas🌆, where it has a store.
It lets customers make online orders👨🏻💻 and pick up them up later from the stores themselves🛍️.
Future is in Online
In its annual report📃, DMart has vowed to focus on e-commerce segment.
It has pointed out to the recent trend of consumers shifting towards online mode to order household grocery🧁 and other items.
The company which presently operates over 214 physical stores🏢 has said the ongoing Covid pandemic could significantly affect😣 its plans to open new stores as the industry in whole is witnessing store closures, lower footfalls and fall in demand.
According to a recent report by research firm👨🏻💼 Nielsen, e-Commerce has witnessed its fastest growth yet at 16%📈 during the June quarter.
Notably, online channels account for 3% of total FMCG sales.
However, this figure rises↗️ to over 9% when it comes to the metros.