Demart's proposition of everyday low prices has been under some threat. Its competitors, reliance smart and big bazaar, have been slashing prices to recapture their market share. So demat will need its high margin business, what it calls merchandise and apparel, to pick up in a big way. Typically, the gross margins from this segment are over 25%. But f m c g margins are a paltry five % or lower. And if you want to sell more of this high margin stuff, you will need bigger retail space. Perhaps the company is making the transition in a bid to beef up its apparel and merchandise business. Or this could be about e commerce, an area in which
A couple of days ago, a media report indicated that hypermarket chain DMart closed a deal on a 67,404 sq ft retail space in Central Bengaluru. Why are we talking about it today? Well, it could be signalling a change in strategy for the retail giant. So, let’s dive in.