DMart Business Trick: Avenue Supermarts Limited runs DMart as one of the cheapest and most economical places to buy groceries and home goods. Their pricing strategy attracts a diverse range of customers. By following this disciplined business model, they have made DMart one of the most successful supermarts in India.
❂ Bulk Purchasing from Manufacturers:
To begin with, DMart sources products directly from manufacturers or major suppliers. By doing so, they bypass middlemen and buy in large volumes. Consequently, this allows them to negotiate better prices.
❂ Cost-Efficient Store Operations:
⦿ DMart owns most of its stores instead of renting them, saving on long-term rent costs.
⦿ DMart has kept a majority of its workforce temporary (around 59,961 out of 73,932) to reduce labor costs.
⦿ The team designed the stores in a very simple manner. They planned everything with the Indian audience in mind. They avoided unnecessary aesthetics, making the stores look simple and approachable.
❂ Large-Scale Operations:
DMart operates over 415 stores across 12 states (as of March 2025) and has scaled its operations to benefit from economies of scale. It buys larger quantities to reduce per-unit costs.
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❂ Optimized Supply Chain:
Products have been stored in central warehouses and distributed efficiently, reducing transportation and handling expenses.
❂ Everyday Low Pricing (EDLP):
DMart maintains consistently low prices rather than offering occasional discounts. For instance:
⦿ Loose Sugar (1 kg): ₹41
⦿ Dodla Cow Ghee (1L): ₹499
❂ Focused Product Range:
DMart minimizes inventory holding costs by stocking only high-demand essential items.
❂ Reinvestment of Profits:
DMart reinvests profits into new stores and operational improvements instead of paying dividends.
❂ Strategic Store Locations:
Properties in high-footfall urban and semi-urban areas have been acquired, boosting customer traffic and reducing long-term rental expenses.
❂ Tips for Customer :
⦿ Customers have to shop during the offer days for more discounts.
⦿ It is advised to use bank card offers for additional benefits.
⦿ Experts advise customers to compare DMart’s prices with competitors like JioMart to find the best deals. Despite facing minor challenges in online services, DMart consistently attracts shoppers with its affordable pricing.