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Avenue Supermarts - Better Product Mix, Strong Balance Sheet, Lower Fixed Costs To Aid Margins: Systematix

Avenue Supermarts - Better Product Mix, Strong Balance Sheet, Lower Fixed Costs To Aid Margins: Systematix

<div class="paragraphs"><p>Stairs inside a DMart store. (Photo: Vijay Sartape/ BQ Prime)</p></div>
Stairs inside a DMart store. (Photo: Vijay Sartape/ BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Avenue Supermarts Ltd. hosted an investor conference call to give an update on its business operations. Key takeaways are:

DMart is witnessing strong store footfalls as, business recovers across geographies. A strong sales recovery in mature stores (older than 24 months) is driving same-store-sales growth (16.7% in FY22). The average bill value per customer has sustained above the pandemic levels due to

  1. the inflationary environment (consumer seeks value) and

  2. continued bulk buying behaviour of consumers that started during the pandemic.

However, DMart expects the basket size to return to normal levels post pandemic, as consumers revert to their old shopping patterns.

In FY22, the number of bills cut increased 19% YoY to 181 million, primarily led by new store addition. Inventory levels are normalising, as sales recover and are currently at pre-Covid levels.

Click on the attachment to read the full report:

Systematix Avenue Supermarts - Company Update.pdf

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