DMart, the darling of India’s retail landscape, has long been synonymous with efficiency and unbeatable value. But even giants are not immune to disruption. The rise of quick commerce, a model promising ultra fast deliveries-has nudged DMart to rethink its strategies and adapt to a rapidly evolving market.
What Happened to DMart Ready?
DMart Ready, the company’s foray into e-commerce, allowed customers to order online and pick up their purchases at designated points. By March 2023, DMart had set up an impressive 573 such stores. Yet, despite this promising start, consumer preferences began shifting. Quick commerce players like Zepto, Blinkit, and Swiggy Instamart disrupted traditional grocery shopping by delivering essentials within minutes. This trend caught fire, with customers increasingly prioritising speed and doorstep convenience over pick-up models.
As a result, DMart started winding down its DMart Ready stores. By March 2024, the company had closed over 40% of these outlets, leaving just 341 operational, primarily in Mumbai and Pune. However, this doesn’t signify a retreat but rather a pivot.
Challenges on Multiple Fronts
DMart’s troubles aren’t limited to quick commerce. The company’s Q3 FY25 results showed a 17% revenue rise to ₹15,973 crore compared to the previous year, but net profit only inched up 5% to ₹724 crore. EBITDA margins fell to 7.6%, down from 8.3% in Q3 FY24, reflecting increased competitive pressure and rising costs.
Moreover, DMart’s apparel segment faces stiff competition from value retailers and private brands, further straining profitability. Its share price has also taken a hit, falling by 30% in six months.
A New Era for DMart
In response, DMart is doubling down on home delivery. The company recently announced plans to launch a home delivery-only model in select towns, acknowledging the shift in consumer behaviour. Though online sales currently contribute just 3% to its overall revenue, this number is expected to grow significantly as DMart scales its e-commerce operations.
Adding to the transformation is a leadership shakeup. Anshul Asawa, currently with Unilever, has been named CEO-designate and will take the reins from March 15, 2025. This leadership transition signals DMart’s intent to bolster its digital and operational strategies.
DMart’s evolution underscores the need for even established players to stay nimble in a world where consumer habits evolve at lightning speed. As quick commerce continues to gain traction, DMart must balance its legacy strengths with a bold digital future. For now, its response offers a blueprint for navigating disruption while remaining a key player in India’s competitive retail sector.
