Why is DMart taking the ecommerce route?

The rise of this brick mortar retail company when there were giants like Reliance and More in the market is truly an astounding feat. This was a time when businesses were moving their model to an online offline combo or trying to just get online.

The advantages for getting retail online are many.To list a few

• Easy Access to Markets
• Overheads get reduced
• Growth is rapid
• Helps customer acquisition and predicts behavior using  analytics.

During the lockdown, DMart seems to have learned that lesson.

For a company that boasted of not shutting even one outlet since opening in 2002, shutting a couple in Mumbai to repurpose them as ecommerce fulfilment centers, DMart has really proven that it can be flexible.

The wake up call seems to be the 37% drop in profit this year while also losing 12.3% of its revenue in the quarter ending September.

The online brand is to be called DMart Ready.

The company has invested  ₹ 252.76 crores as of March 2020 to launch an ecommerce organisation called Avenue Ecommerce.