DMart converts 2 Mumbai stores into fulfilment centres
New Delhi: Avenue Supermarts Ltd, which owns and operates supermarket chain DMart, has closed two of its retail stores in Mumbai and converted them into fulfilment centres to cater to its growing e-commerce business in the city. The company opened six new DMart stores during the July-September quarter this fiscal taking its store count to 220 with total retail business area of 8.20 million sq. ft, Avenue Supermarts said in a regulatory filing.
“We have closed two of our Mumbai stores and converted them into fulfilment centres (FC) for our e-commerce business,” said Avenue Supermarts CEO & Managing Director Neville Noronha.
About its brick and mortar retail business, the company said, “Footfalls are getting better and basket values are reducing month over month.”
The company last week reported a 38.46 per cent decline in its profit after tax to Rs 198.53 crore in the July-September quarter as against Rs 322.63 crore of the corresponding quarter last fiscal.
Its revenue from operation in the second quarter of FY2020-21 was down 11.42 per cent at Rs 5,306.20 crore against Rs 5,990.78 crore in the year-ago period.
“Footfalls continue to be lower than pre-Coivd levels but basket values are higher than pre-Covid levels,” Noronha said.
While talking about the FMCG and staples demand, DMart said it was “robust”. “September 2020 sales of all stores exceeded September 2019 sales for FMCG and staples while general merchandise and garments did lesser sales in the same period. However, discretionary consumption has seen improvement over the previous quarter,” it said.
