India's e-commerce industry is gearing up for a spectacular festive season, with projections indicating a surge in gross merchandise value (GMV) to over Rs 1.15 lakh crore. This represents a robust year-on-year growth of 20-25%, according to a recent report by Redseer Strategy Consultants.

Accelerated Growth

The anticipated growth rate for this festive season is nearly double that of last year, signaling a significant acceleration in the e-commerce sector. Looking ahead, the industry is expected to close 2025 with an impressive 17-22% growth, marking its strongest performance in three years.

Emerging Trends

Two segments within the e-commerce landscape are showing particularly strong momentum:

1. Quick Commerce: Demonstrating a remarkable pre-festive growth of 150%
2. Value Commerce: Expanding at a rate of 30-35%

Both these segments are not only thriving in metropolitan areas but are also making significant inroads into tier-2 and tier-3 markets, indicating a broadening of the e-commerce footprint across India.

Key Growth Drivers

Several factors are contributing to this bullish outlook:

• Repo rate cuts
• Increased tax-free income limit from Rs 5 lakh to Rs 12 lakh
• Rural household income growth of 12% over four years
• Expected GST rationalization with simplified slabs of 5% and 18% by Diwali, potentially making goods cheaper

Category Performance

While the e-commerce sector as a whole is poised for growth, performance varies across categories:

The grocery segment's exceptional growth is primarily driven by the quick commerce boom.

Festive Season Outlook

Horizontals are projected to be the powerhouse of the festive season, expected to drive approximately two-thirds of all festive sales. This underscores the importance of multi-category platforms in capturing consumer interest during peak shopping periods.

As India's e-commerce sector continues to evolve and expand, this festive season could mark a turning point, setting the stage for sustained growth in the coming years. With a combination of favorable economic factors and changing consumer behaviors, the industry appears well-positioned to capitalize on the festive spirit and drive significant sales across various product categories.

Avenue Supermarts Limited, the parent company of DMart, has unveiled ambitious plans to accelerate its store expansion across India, potentially adding up to 1,800 new locations in the coming years. The company's leadership shared insights on their strategy to compete in an evolving retail landscape during their annual conference call with analysts and investors.

Accelerated Store Expansion

DMart's management expressed a strong commitment to accelerating store openings. Managing Director Neville Noronha stated, "We will see basis what we disclose on a quarterly basis or whatever is the criteria of disclosures on store openings. You'll see the numbers coming." While specific targets weren't provided, Noronha assured that the company would open at least 50 stores in the upcoming year.

The company sees significant potential for growth, estimating a total addressable market of approximately 2,200 stores across India. With around 400 existing locations, this leaves room for about 1,800 new stores, although the company views this as a conservative estimate.

Focus on North India and New Markets

DMart is placing particular emphasis on expansion in North India, including Uttar Pradesh (UP). Noronha mentioned, "We see a huge opportunity in between, okay? Where we deliver the product at home, but at a decent value. That's what we're trying to achieve." The company has already opened stores in Agra and plans to accelerate its presence in the region.

Competition and E-commerce Strategy

Addressing the growing competition from quick commerce and e-commerce players, DMart remains confident in its brick-and-mortar model. Noronha emphasized, "We continue to remain very, very bullish on the brick-and-mortar business. That doesn't mean that we don't understand what the opportunities are in the online space."

The company's online arm, DMart Ready, is focusing on home delivery services. Vikram Dasu, CEO of Avenue E-Commerce Limited, stated, "We have started ramping up our outreach efforts and you'll start to see more of it in the coming months."

Financial Performance and Outlook

While specific financial figures weren't disclosed, the company acknowledged some pressure on margins due to increased competition and investments in improving service levels. However, DMart remains focused on long-term growth rather than short-term margin fluctuations.

Noronha commented, "We are okay with raising reasonable debt to ensure that the expansion is not kind of slowed down." This indicates the company's willingness to leverage its balance sheet to support its ambitious expansion plans.

Leadership Transition

The call also addressed the upcoming leadership transition, with Anshul Asawa set to take over as CEO in January 2026. Asawa emphasized continuity in DMart's core principles, stating, "There are some very clear, strong fundamentals of a value retailer that DMart has actually pioneered here in India. And those don't need to change."

As DMart embarks on this new phase of accelerated growth, the company remains committed to its value retail model while adapting to the changing competitive landscape. The management's focus on store expansion, particularly in underserved markets, signals confidence in the continued relevance of brick-and-mortar retail in India's evolving consumer market.