Avenue Supermarts Limited , the parent company of DMart retail chain, has announced the opening of a new store in Hinganghat, Wardha district of Maharashtra. This strategic expansion brings the total number of DMart stores to 427, further solidifying the company's presence in the Indian retail market.

Expansion Details

The company informed the stock exchanges, BSE and NSE, about the store opening through a regulatory filing. Ashu Gupta, Company Secretary and Compliance Officer of Avenue Supermarts Limited, stated in the filing:

"This is to inform you that the Company has opened a new store at Hinganghat, Wardha (Maharashtra) today. The total number of stores as on date stands at 427."

Market Impact

The expansion news comes as Avenue Supermarts continues its growth trajectory in the competitive retail sector. DMart, known for its value-for-money proposition, has been steadily increasing its store count across various regions in India.

Investor Relations

In a separate filing on the same day, the company also disclosed details of meetings held with institutional investors and analysts. The meetings, which took place in Mumbai, included one-on-one sessions with representatives from:

• Capital Research
• UTI Mutual Fund
• SBI Pension Fund
• Nippon Mutual Fund

The company assured that no unpublished price-sensitive information was shared during these meetings, maintaining transparency with its shareholders and the market at large.

Conclusion

As Avenue Supermarts continues to expand its retail footprint, the opening of the new store in Hinganghat represents the company's ongoing commitment to growth and accessibility. This development may be of interest to investors and market watchers tracking the performance and expansion strategies of major players in India's retail sector.

Avenue Supermarts DMart , the operator of DMart retail chain, saw its shares jump over 7% to Rs 4,299.00 following the company's announcement of plans to accelerate store additions. The move comes as a strategic response to address competition from the quick commerce sector.

Expansion Strategy

The company has firmly rejected concerns that quick commerce would impact its financial performance. In line with its expansion plans, Avenue Supermarts opened a new store in Pathankot, Punjab, bringing its total store count to 426. This information was confirmed in a recent filing to the stock exchanges.

Q1 Financial Performance

Avenue Supermarts reported a modest growth in its standalone net profit for Q1:

The company opened nine new stores during Q1, reaching 424 stores by the end of June.

Challenges and Growth Factors

Despite the revenue growth, profit growth remained relatively flat. The company attributed this to deflation in staple food and non-food product prices, which impacted sales growth by 100-150 basis points.

Other key points from the quarterly performance include:

• EBITDA margin declined to 8.2% from 8.9% year-on-year, primarily due to competitive pressures in the FMCG market.
• Older stores showed a growth of 7.1%.
• Operating costs increased, which the company attributed to improved service levels and wage inflation.

Outlook

Avenue Supermarts' decision to accelerate store additions reflects its commitment to maintaining its strong position in the retail market, especially in the face of growing competition from quick commerce players. The company's expansion strategy, coupled with its focus on improving service levels, suggests a proactive approach to addressing market challenges and evolving consumer preferences.

As the retail landscape continues to evolve, investors will be keenly watching how DMart's expansion strategy impacts its financial performance and market position in the coming quarters.