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The supermarket typically comprises meat, produce, dairy, and baked goods departments
along with shelf space reserved for canned and packaged goods. A variety of non-food items such
as household cleaners, pharmacy products, and pet supplies are also available. Most supermarkets
also sell a variety of other household products that are consumed regularly, such as alcohol (where
permitted), household cleaning products, medicine, clothes, and some sell a much wider range of
non-food products.
The traditional supermarket occupies a large floor space on a single level and is situated
near a residential area in order to be convenient to consumers. Its basic appeal is the availability
of a broad selection of goods under a single roof at relatively low prices. Other advantages include
ease of parking and, frequently, the convenience of shopping hours that extend far into the evening.
Supermarkets usually make massive outlays for newspaper and other advertising and often present
elaborate in-store displays of products. Supermarkets are often part of a chain that owns or controls
(sometimes by franchise) other supermarkets located in the same or other towns; this increases the
opportunities for economies of scale.[1]
Most supermarkets are similar in design and layout due to trends in marketing. Produce
tends to be near the entrance of the store. Milk, bread, and other essential items may be located in
the rear or other out of the way places. This is purposely done to ensure maximum time spent in
the store, strolling past other items and capitalizing on impulse buying. The front of the store is
where one finds point of sale machines or cash registers. Many retailers have implemented self-
checkout devices in their stores in an attempt to reduce labor costs. A group of four or five self-
checkoutg machines can be supervised by a single assistant.
Supermarkets usually offer products at low prices by reducing margins. Certain products
(typically staples such as bread, milk, and sugar) are often sold as loss leaders, that is, with negative
margins. To maintain a profit, supermarkets attempt to make up for the low margins with a high
overall volume of sales, and with sales of higher-margin items. Customers usually shop by putting
their products into shopping carts (trolleys) or baskets (self-service) and pay for the products at
the check-out.
In the early days of retailing, all products had to be fetched by an assistant from shelves on
one side of a counter while the customers stood on the other side and pointed to what they wanted.
Also, many foods did not come in the individually wrapped consumer-size packages taken for
granted today, so an assistant had to measure out the precise amount desired by the consumer.
These practices were obviously labor-intensive and therefore quite expensive. The shopping
process was slow, as the number of clerks employed in the store limited the number of customers
who could be attended at one time.
The concept of a self-service grocery store was developed by Clarence Saunders and his
Piggly Wiggly stores. His first store opened in Memphis, Tennessee in 1916. Saunders was
awarded several patents for the ideas he incorporated into the Piggly Wiggly stores. The stores
were a financial success and Saunders began to offer franchises. A&P was another successful early
chain in Canada and the United States, having become common in North American cities in the
1920s.
The general trend in retail since then has been to stack shelves at night and let the customers
get their own goods and bring them to the front of the store to pay for them. Although there is a
higher risk of shoplifting, the costs of appropriate security measures will be ideally outweighed by
the economies of scale and reduced labor costs.
According to the Smithsonian Institution, the first true supermarket in the United States,
and the world, was opened by ex-Kroger employee Michael J. Cullen, on August 4, 1930, in a
6,000 square foot (560 m²) former garage in Jamaica, Queens, New York. The store, King Kullen,
named for King Kong, operated under the slogan "Pile it high. Sell it low." The main difference
between this store and the Piggly Wiggly stores was that Cullen's store was much larger, and they
stocked national brands of food that were not easily found at neighborhood markets. The rise of
the refrigerator also gave Cullen the idea to install a parking lot near the supermarket so people
could buy large quantities of food for storage. When Cullen died in 1936, there were 17 stores in
operation.
Existing grocery chains like Kroger and Safeway at first resisted Cullen's idea, but
eventually were forced to build their own supermarkets as the North American economy sank
further into the Great Depression and consumers became price-sensitive to a degree never seen
before.[4] Kroger took the idea one step farther and pioneered the first supermarket surrounded on
all four sides by a parking lot. Soon, other supermarkets popped up, using the ideas that Cullen
had originated to attract many consumers.
Supermarkets proliferated in Canada and the United States after World War II. Throughout
the 1950s, supermarkets spread into Europe. The rest of the world accepted supermarkets
throughout the 1960s, 1970s, and 1980s, with some parts of Asia accusing the major supermarket
chains of promoting westernization. Supermarkets rose to prominence in Africa in the 1990s,
spreading rapidly through eastern and southern Africa.[5]
North American supermarkets are often co-located with smaller retailers in strip malls and
are generally regional rather than national. Kroger is probably the closest thing to a national chain
in the United States but has preserved most of its regional brands like Ralphs, City Market, and
King Soopers. In Canada, the largest food retailer is Loblaw Companies. Loblaw Companies
operates grocery stores across Canada under a variety of regional names such as Fortinos, Zehrs,
and the largest Loblaws (named after the company itself). Sobeys is Canada's second largest
supermarket with locations across the country, operating under many banners (Sobeys, IGA in
Quebec locations). In the United Kingdom, Tesco is the largest chain of supermarkets followed by
ASDA and Sainsbury's.
In many parts of the world, the proliferation of out-of-town supermarkets has been blamed
for the disappearance of smaller, local grocery stores and for increased dependency on
the automobile (and the consequent traffic). In particular, some critics consider the practice of
selling loss leaders to be anti-competitive, and are also wary of the negotiating power large retailers
have with suppliers. Supermarkets own much of the food retail in many countries. In the United
States, 70 percent of the food retail is controlled by supermarkets. The figure is similar in Europe.
The rise of supermarkets in Asia, South America, and Africa places supermarkets in control of
about 55 percent of all food retail in the regions.[5]
It was formerly common for supermarkets to give trading stamps. Today, most
supermarkets issue store-specific "members cards," "club cards," or "loyalty cards" which are
scanned at the register when the customer goes to checkout. Typically, several items are given
special discounts if the credit card-like devices are used. Today supermarkets face price
competition from discount retailers such as Wal-Mart and Zellers (non-union labor and greater
buying power) and warehouse stores such as Costco (savings in bulk quantities).
SUPERMARKET CHAINS
Avenue Supermarts Limited is an India-based company which owns and operates DMart
stores. DMart is a supermarket chain that offers customers a range of home and personal products
under one roof. Each DMart store stock home utility products including food, toiletries, beauty
products, garments, kitchenware, bed and bath linen, home appliances and others. The company
offers its products under various categories, such as bed and bath, dairy and frozen, fruits and
vegetables, crockery, toys and games, kid’s apparel, ladies’ garments, apparel for men, home and
personal care, daily essentials, grocery and staples, and DMart private label brands.
By the late 1990s, Mr. Radhakishan Damani, was already established as one of the more
successful and well-known value investors in the Indian equity markets. Through his investing
style, he had developed a very keen understanding of the Indian consumer sector and its psyche.
He was anxious to start a business beyond investing, which would enable him to test his hypothesis
about the Indian consumer. After a couple of years of introspection and research, he decided to
start a grocery retail chain, focusing primarily on the value segment. DMart was conceived by him
in the year 2000. Mr. Damani imagined the retail business with the same values of simplicity,
speed, and nimbleness that he espoused in his stellar investing career.
DMart took eight years to start its first ten stores. This wasn’t because of dearth of
investment opportunities, but more because of his belief in the importance of validating the
business model from a perspective of both profitability and scalability. His beginnings at DMart
were frugal. For a number of years since inception, DMart’s corporate operations were run from a
small space carved out from one of the early stores.
Damani in the year 2000, who at the time was operating a single store in Maharashtra. With
a mission to be the lowest-priced retailer in its area of operation, DMart has grown steadily over
the years, and operates 324 stores in 10 States, 1 Union Territory and NCR. The Company has
delivered stable performance across stakeholder metrics by focusing on financial fundamentals,
with fortitude and strong conviction. DMart has a presence over various locations across
Maharashtra, Gujarat, Daman, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana,
Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan. The company has multiple stores in cities
such as Mumbai, Ahmedabad, Baroda, Bengaluru, Hyderabad, Pune, and Surat.
As of 31 March 2022, DMart had a total of 10,713 permanent employees
and 58,597 employees hired on contractual basis. In December 2016, the company started its e-
commerce venture called DMart Ready, allowing users to order groceries and household products
online. The company launched its initial public offering (IPO) in March 2017 and got listed on
the National Stock Exchange and Bombay Stock Exchange. On its listing date 22 March 2017, it
became the 65th most valuable Indian firm.
Subsidiaries
Milestones
6. The company was converted from a private company to a public company and the name
of the company changed to Avenue Supermarts Limited. The store count of the company
crossed 50 stores in 2012
9. The company opened 21 stores, highest in any financial year. The store count of the
company increased to 110 in 2016
10. The company opened stores in the National Capital Region, Rajasthan, and Daman in 2017
11. DMart closed its two retail stores in Mumbai and converted them into fulfilment centers
to cater to its growing e-commerce business in the city in 2020.
12. Total revenue for the quarter ended June 30, 2021 stood at Rs. 5,183 crores (US$ 701.07
million), as compared to Rs. 3,883 crores (US$ 525.23 million) in the same period last
year.
In September 2021, DMart forayed into Haryana, opening a 94,000 sq. ft store in
Faridabad
13. The company's consolidated net profit stood at Rs. 686 crores (US$ 83.1 million) for Q2
FY23. Total Revenue for the quarter ended September 30, 2022 stood at Rs. 10,638 crores
(US$ 1.28 billion), as compared to Rs. 7,789 crores (US$ 943 million) in the same period
last year. DMart Q4 revenue rises 20% YoY to US$ 1.25 billion (Rs. 10,337 crore); store
count at 324.
Product Categories
CUMULATIVE STORES
Cumulative Stores
350 324
300 284
250 234
214
No.of Stores
200 174
150
100
50
0
Fy 2018-19 Fy 2019-20 Fy 2020-21 Fy 2021-22 Fy 2022-23
Financial year
The above chart represents the increase in number of stores over the financial years. D mart
has been steadily increasing their number of stores through the years. At the end of the financial
year 2022-23 the no of stores owned by D mart is numbered to 324.