INSUBCONTINENT EXCLUSIVE:
Shares of some of the retailers, including Avenue Supermarts Future Retail, and Trent have fallen by 3-3.5 per cent since May 2 after the
news reports stated that the deal between Flipkart and Walmart was in the final stages.
But Neville Noronha, CEO of Avenue Supermarts,
There are customers across segments and hence, it allows multiple players to coexist
You have large organised retailers, you still have kirana stores and you have online retailers
stores under DMart brand.
According to reports, Indian retail sector, including organised and unorganised entities, is 30 per cent of the
It is expected to grow to $1 trillion in the next 4-5 years from $650 billion currently.
Thanks to its strong track record and resilient
business model, the street has rewarded Avenue with top valuation
Its stock trades at a trailing price-earnings multiple of 115 times.
Despite higher base, the company delivered 64 per cent earnings growth
for FY18, much higher than what the analysts anticipated a year ago
Although hesitant to comment on the Walmart-Flipkart deal, Noronha said the company is yet to ascertain whether the online model can be as
That is why food and grocery is only 2-4 per cent of the total online retail in most developed markets
It is easy to get the topline but very difficult to earn profit
The logistics cost relative to food and grocery sales is quite high in comparison with selling a mobile phone or a laptop
Besides, food shopping is such a thing where all or most human senses are involved, and mobile screen has its limitations
the company is taking every step to adapt in case the consumer buying gradually shifts to online
We may be the poor cousin right now, but we want to be involved in e-commerce
