Investors may have missed D-Mart stock, but customers have long gained from the store…

What a fairy tale story indeed. From being a low profile retail player to becoming a stock market darling is quite something. Though, there are signs of irrational exuberance.

The huge opening day gains has prompted one financial house to ask the question: Missed the D-Mart Bonanza?

This blog is guilty of not writing on D-Mart despite deciding many times to write on it only to forget. Part of the forgetting was there was never even a side reference on the .retailer

One always wondered before the IPO buzz, why aren’t there any articles on D-MArt at all? The retailer was clearly the best in the business whose only purpose was to make sure customers gain from their purchases. It gives you discount on nearly all its products. In case there is no offer on a product, you get an assured discount of 5-7% on those products. There is a saving on all products.

Some call it Walmart of India which is not right. Unlike Walmart stores which are huge and located outside the cities, D-Mart stores are much smaller and housed in city centres. Infact, it is amazing how the retailer manages to store so much in such limited space. Yes, there are bigger stores as well but most are small and mid-sized ones.

The only similarity with Walmart is discounts on all products and trying to lower prices for the customer everyday. It is unbelievable how the retailer manages to have so many 50% off, Buy one get one offers etc which all retailers together are not able to manage. And all this was happening without any hype and buzz. It was low key with amazing impact on customers.

Walmart had a dynamic founder in the name of Sam Walton but D-Mart just had an opposite natured founder who is just so media shy.

Other stores err on looking fancy but D-Mart is your typical local store. You just walk in and walk out. Though walking out is never easy given huge crowds. People just throng to D-Mart stores knowing there are both savings and value at the stores.

So, even if investors lost out on the IPO its customers have only gained. Share prices will go up and down and risky for most households. But day to day consumption items are essential and so far D-Mart has not failed them in this endevour.

Infact, the share price might look irrational exuberant but the crowd in D-Mart stores is unbelievably exuberant. You sometimes feel as if things are sold for free!

So lots of power to DMart and hope it continues in its core function and not get carried away by the recent riches…

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2 Responses to “Investors may have missed D-Mart stock, but customers have long gained from the store…”

  1. sheikh mohammed Says:

    15 Years back, the same pitch was played in BIG BAZAR,south I was given the task as a Merchandiser and Asst Operation Manager for food bazaar. Its just you need the good Vendor Management, merchandise & product knowledge, customer friendly, consumer tastes and tasty tricks and you need to drive the pitch then sales will come on its-way. BIG BAZAAR has only short played due its competition. D-Mart has done the same old pitch into new face at present, I had played this low price games being middle level. Initially management had gave us free hand to take the decision to operate the best and low in the market. It will be challenging for the BIG BAZAR on long term due to this stiff competition from low profile retailers who became overnight the big giant retailers. As long as your customer satisfied and if your customers on your finger tips, there is no need to count on your sales, which automatically grows multiples even with low margin with multiple volumes of business.

  2. sheikh mohammed Says:

    For D-Mart, on long term business, it is very challenging due to the thin margins in food retailing

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