Shares of Avenue Supermarts Ltd., owner of the D-Mart stores, rose as much as three percent on Thursday to cross the Rs 1,000-mark for the first time since its March listing on the exchanges.
The market capitalisation of the supermarket chain operator crossed Rs 63,000 crore, more than 13 Nifty 50 companies.
The stock has risen over 235 percent since its March 21 stock market debut, making it the best performer among its peers.
Strategy That Helped D-Mart Outperform Others
Avenue Supermarts works on an own-and-operate model, which is different from the rental strategy adopted by most of its competitors. This helps the retailer’s margins. Besides that, the company keeps its distribution cost low due to cluster store strategy. The store productivity continues to improve as revenue per square feet is rising 11 percent in FY17.
D-Mart keeps its footfalls intact by passing on price discounts to customers and maintaining the in-store experience. The latter is ensured by efficient labour management system and strong IT process. Cash discounts provided by the company also help in inventory turn.
D-Mart continues to focus on states where it already has a presence, the company said in a presentation. It added 0.73 million square feet in the financial year 2017 across 21 stores while trying to reach its target of 4.06 million square feet across 131 stores in FY17. The company also ventured into new geographies including the National Capital Region, Daman, Rajasthan and Tamil Nadu.
RECOMMENDED FOR YOU
POPULAR