Product strategies

Every day low costing

Sells products 6-12% less than MRP

Attracts customers through groceries

which have comparatively lower margin,
then selling products with higher margins

Limited Assortment ( less variety )

Quicker Inventory Turnover (D-mart kills

competition here, its like the Zara of FMCG
Retail. D-mart Inventory Turnover is 14.18 (26
days) v/s 4.9x (75 Days) for Future Retail)
 Operation Strategies

Ownership of all Properties

Employee Cost – D-Mart has the Least

number of Employees per square foot (1
employee for 800 Square feet )

Close Category shelves with

warehouse like structure

No Frills -stores have limited range of

products and have simple decor. People
come for just one thing: lower prices
 Supplier Strategies & Channel
Management
Quicker Payment - It procures vegetables at a low
price by paying its supplier faster than others (on an
avg. 8 days as against 60 days for its rivals) in exchange
for an upfront discount.

Develop relationship

Negotiate directly from manufacturers

Cluster Approach

Stores are close to distribution Centers

Invested in distribution and the logistics Centre

 Challenges & Future Actions

India’s traditional retail industry of Kiranas are very

responsive.

Consumer behavior

D-mart faces tough competition from e-

commerce sector. D-mart Ready – Omni
channel platform - launched in 2017.

D-mart is now considering long term renting.

Owning properties strategy is a big bottleneck for
quick scaling up in today’s market scenario