Analysts attribute the optimistic outlook to rising revenue per square foot and the steady expansion of DMart’s store network. The company’s revenue growth is expected to hit 18% year-on-year, bolstered by inflationary pressures and the strategic addition of new stores.
“We anticipate a slight uptick in general merchandise sales as consumer sentiment improves, driving higher revenue per square foot,” noted a stock broking firm.
In the past year, DMart has witnessed an upward trend in revenue per square foot, reversing a previous period of subdued performance attributed to large-store additions and tepid discretionary spending. This reversal underscores a strategic shift that aligns revenue per store growth more closely with revenue per square foot metrics.
During the quarter under review, Avenue Supermarts expanded its footprint by opening six new stores, bringing its nationwide total to 371 stores. This follows the addition of 24 stores in the previous quarter and underscores the company’s aggressive expansion strategy.
Gross margins are anticipated to remain stable, with a notable contribution from the high-margin general merchandise and apparel segment (GM&A). Analysts forecast a gross margin of 14.6%, consistent with Q1FY24, yet slightly lower than the pre-Covid Q1 average of 15.7%.
Market watchers will closely scrutinize DMart’s Same Store Sales Growth (SSSG) and monitor shifts in revenue per square foot, evaluating trends that may impact future earnings. This scrutiny includes assessing the evolving dynamics between revenue per store and revenue per square foot metrics.
As DMart prepares to disclose its quarterly results, industry experts are poised to gauge the retailer’s performance against these anticipated growth drivers, reflecting both operational resilience and strategic expansion efforts in a competitive retail landscape.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
