Q2 FY26 data shows value-fashion retailers leading the charge in same-store sales growth, with V2 Retail and Baazar Style Retail significantly outpacing larger established players. The performance indicates a faster demand recovery at the mass market end of the retail spectrum.

Understanding Same Store Sales Growth

Same-store sales growth (SSSG) measures revenue increases in stores operating for at least one year, excluding growth from new store openings. This metric reflects organic growth through increased customer footfall or higher-value product mix shifts, without additional capital expenditure. Retailers typically report both normal SSSG and adjusted SSSG, with the latter excluding one-time factors like festival timing variations, store renovations, or temporary disruptions.

Q2 FY26 Performance Leaders

V2 Retail Takes the Lead

V2 Retail emerged as the clear winner with exceptional same-store sales performance. The value-fashion retailer operates under brands including Godspeed, Herrlich, Glamora, and Honey Brats, offering affordable clothing and lifestyle products.

The company's stores are concentrated in northern India, with Uttar Pradesh (48 stores), Bihar (44 stores), and Odisha (30 stores) representing major markets.

Baazar Style Retail Close Second

Baazar Style Retail Limited, established in 2013, demonstrated strong performance with 22% SSSG in Q2 FY26. The company focuses on Eastern India, particularly Odisha and West Bengal, delivering fashion clothing at competitive prices.

Mid-Tier Performers

Vishal Mega Mart and V-Mart

Vishal Mega Mart, targeting middle and lower-middle-income consumers across apparel, general merchandise, and FMCG categories, reported 12.8% adjusted SSSG. The retailer added 28 stores in Q2 FY26, reaching 742 total stores with balanced regional presence.

V-Mart Retail achieved 11% SSSG while expanding by 36 stores to reach 533 total outlets. The chain offers diverse products from clothing to daily essentials, with strong presence in Uttar Pradesh (162 stores) and Bihar (76 stores).

Avenue Supermarts (DMart) Performance

Avenue Supermarts Limited, operating the D-Mart retail chain, recorded the lowest SSSG at 6.8% among the compared retailers. The value retailer added 17 stores in H1 FY26, bringing total count to 432 stores. DMart's network is concentrated in southwestern India, with Maharashtra leading at 120 stores, followed by Gujarat (68 stores), Karnataka (41 stores), and Andhra Pradesh (42 stores).

Market Insights

The Q2 FY26 data clearly demonstrates that value-fashion retailers focusing on mass market segments are experiencing significantly higher same-store sales growth compared to larger, more diversified retail chains. This trend suggests robust demand recovery in the affordable fashion segment, with consumers showing preference for value-oriented retailers over big-box formats. The performance gap between V2 Retail's 23.4% and DMart's 6.8% SSSG highlights the varying recovery patterns across different retail categories and target demographics.

Avenue Supermarts Limited has announced the successful allotment of commercial paper worth ₹100.00 crores, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made on January 9, 2026, marking a significant short-term financing move by the retail chain operator.

Commercial Paper Details

The commercial paper issuance carries specific terms and conditions that reflect the company's financing strategy. The following table outlines the key parameters of this financial instrument:

Financial Terms and Structure

The commercial paper offers a competitive interest rate of 6.00% per annum, with the entire principal and interest payable at maturity on March 30, 2026. The instrument is structured as an unsecured debt obligation, indicating the company's strong creditworthiness and market confidence. The 80-day tenure positions this as a short-term financing solution for the company's working capital requirements.

Credit Rating and Market Positioning

The commercial paper has received ICRA A1+ credit rating, which represents the highest grade for short-term debt instruments. This rating reflects the company's strong financial position and ability to meet its short-term obligations. The instrument is proposed to be listed on BSE Limited, providing liquidity options for investors.

Regulatory Compliance

The announcement fulfills the company's disclosure obligations under SEBI regulations, ensuring transparency for stakeholders and market participants. The formal communication was signed by Ashu Gupta, Company Secretary & Compliance Officer, maintaining proper corporate governance standards. Avenue Supermarts continues to demonstrate its commitment to regulatory compliance and transparent financial reporting practices.