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Dmart, the retail group in India, is absolutely number one on vision, execution, and consistency. Dmart opened its first supermarket in Mumbai’s Powai suburb in 2002. Like Walmart in the US, it adopted a deep discounting strategy, offering its customers low prices every day. Today, it has 381 stores. In spite of offering its customers the deepest discounts, Dmart’s net profit numbers beat the best among its global peers.

Yet analysts and investors have been becoming increasingly bearish of Dmart’s future strategy. They argue that what got it from 2002 to 2024 might not necessarily take it to, say, 2034.

One big reason is quick commerce. Armies of underpaid contract delivery workers rushing from dark stores managed by notionally independent owners on behalf of younger companies like Zomato, Swiggy, Zepto, Big Basket, and even Flipkart are challenging the conventional wisdom on retail.

Forcing Dmart to pause and blink.

What should it do? Stick to what it knows and does best? Or learn new digital and delivery tricks in its middle age? With only an estimated 5% of the $500 billion urban market for food and groceries currently penetrated by organised and modern retail, the way Dmart goes has profound implications for India.

To discuss this, hosts Rohin Dharmakumar and Praveen Gopal Krishnan invited Govind Shrikhande, former managing director of Shoppers Stop overseeing all its formats, including Shoppers Stop, Hypercity, Crossword, Homestop, Beauty Formats – MAC, Estee Lauder, Air Port & Duty Free Retail etc. Govind has spent over 40 years in the retail sector, having been part of the launches of Denim and Arrow, the relaunch of Vivaldi and the turnaround of Shoppers Stop. He is currently an Independent Director on the Board of a few Companies and a mentor to a few start-ups.

Our other guest is Seetharaman G. Seetha is deputy editor at The Ken and also leads The Ken’s coverage of retail. He’s written quite a few stories on Dmart over the years as well.

Welcome to episode number 18 of Two by Two!

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Two by Two episodes referenced in this episode:

Is Zepto a gold medallist or a bronze medallist?

Swiggy needs to reclaim its past glory

Stories and newsletters referenced in this episode:

Dmart and the supersizing imperative

Zudio wanted Dmart’s apparel shoppers. Now Dmart is hurting

Dmart changes its mind on store size. Again

Dmart is not used to being in a funk for so long

What if the quick-commerce warehouse was a supermarket?

Dmart and investors rekindle their love

Dmart’s e-commerce bet has gone from counterintuitive to obsolete

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This episode of Two by Two was produced by Hari Krishna. Rajiv CN, our resident sound engineer, mixed and mastered this episode.

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