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Avenue Supermarts Q1FY22 Conference Highlights

Avenue Supermarts Q1FY22 Conference Call Highlights

Published on 09 August 2021 .Views 73 .Comments 0
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Business Highlights:
  • The revenue recovery rate for stores older than two years was 91% in the second half of June 2021 compared to the second half of June 2019.
  • Share of food revenue grew from 52.4% in FY20 to 57.4% in FY21 while non-food (FMCG) revenue declined from 20.3% in FY20 to 19.7% in FY21.
  • Revenue share of general merchandise declined from 27.3% in FY20 to 22.9% in FY21.
  • On the gross margin front, the company is targeting a gross margin of 15- 16% post normalisation of the current volatile scenario.
  • On competitive intensity, the management indicated that its gross margins can be negatively impacted if the competition is resorting to higher discounting. The management is open to effectively competing with the competition and focus is on running the business in a cost-effective manner
Store Addition:
    • During FY21, ASL opened 22 new stores (total 234 store
    • ores. ASL added four stores in Andhra Pradesh (total 21), three in Telangana (total 27), two in Tamil Nadu (total 12) and one in Karnataka (total 21).
    • Gujarat store opening continued with the opening of five new stores (total: 42) while in Maharashtra the store count reduced from 76 to 74 owing to the conversion of two stores to fulfilment centres.


    • The company continues to invest in e-commerce through the expansion of DMart Ready stores and is gradually expanding its presence outside Mumbai.
    • In the newer cities also, ASL is doing pick-up as well as home delivery model and the delivery is managed by the company itself.
    • ASL has not yet evaluated the franchisee route for opening a D-Mart Ready store.
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