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higher than the combined market capitalisation of both Future Retail and
Aditya Birla Fashion
STRATEGY: Start with low-cost products that consumers need on a daily basis
and that you can sell for slightly below MRP. This allows you to rack up a
great inventory turnover ratio. Then use that quick inventory turnover to
negotiate better prices with wholesalers which in turn allows you to support
your low prices,” a top retail executive, who declined to be identified,
told The Wire
Owned stores model: Its strategy of expanding through owned stores
ensures savings in rent costs (4-5% for peers) and protects it from escalation
in rentals. DMART believes that RoCE of owned stores is low for the first nine
years, but is substantially higher thereafter. Of its 131 stores, DMART owns
~85%