DMart halves online footprint, exits 13 cities as quick commerce squeezes e-grocery play
DMart Ready now operates in 11 cities, down from 24, after exiting 7 markets in Q1. The retailer is retreating to profitable large metros as e-commerce losses widen to Rs 247.37 cr in FY25 from Rs 184.82 cr a year earlier, even as revenue climbs 21% to Rs 3,502.42 cr amid Blinkit, Zepto and Instamart pressure.
What happened
DMart halved its online grocery footprint, DMart Ready now in 11 cities from 24, exiting marginal markets amid quick commerce pressure. It refocuses on
Key facts
- 11 cities from 24
- exited 7 cities in Q1
- FY25 loss Rs 247.37 cr
- FY24 loss Rs 184.82 cr
- revenue Rs 3,502.42 cr
- revenue up 21%
- Q1 net up 11%
Why this matters
DMart's exit from 13 cities creates whitespace in mid-tier e-grocery markets and potential partnership or acquisition openings as it cedes the fast-delivery race to quick-commerce incumbents.
What to watch
- FY26 quarterly e-commerce loss trajectory vs Rs 247 cr baseline
- Further city count changes from the 11-city floor
- Blinkit/Zepto/Instamart AOV and category expansion into large-basket grocery
- DMart offline SSSG and store-addition pace as capital reallocates
- Any dark-store closures or third-party fulfilment announcements
- Reallocate freed capex into physical store expansion in tier-1/2 metros where footfall economics dominate
- Reprice DMart Ready baskets to defend value-conscious bulk shoppers vs quick-commerce premiums
- Tighten pickup-point model and dark-store utilization in retained 11 cities to lift order density
- Signal to investors that offline SSSG and margin are the growth engine, framing online as controlled experiment