Retailers lean on new store additions as same-store sales growth moderates under quick-commerce pressure
June-quarter updates show DMart posting 15% revenue growth but softer ~7-8% SSG versus 10.8% prior, with revenue per store down 4%. V-Mart (SSG 9%) and Baazar Style (SSG 7%) also cooled, while QSR recovered modestly (Jubilant LFL 2.5%). Jewellery led, with CaratLane up 42% and Candere up 112%.
What happened
June-quarter updates show Indian retailers leaning on new store additions as same-store sales growth moderates, pressured by quick commerce. DMart, V-Mart and
Key facts
- DMart 15% YoY revenue growth
- 3 stores added
- revenue per store Rs 146 crore (-4%)
- revenue per sq ft Rs 35,000 (-3%)
- DMart SSG ~7-8% vs 10.8%
- V2 Retail 58%
- V-Mart 23% SSG 9%
- Baazar Style 29% SSG 7%
- Jubilant LFL 2.5%
- CaratLane 42%
- Candere 112%
Why this matters
The divergence between cooling value-retail SSG and surging jewellery growth flags M&A and format-expansion opportunities in jewellery even as quick-commerce reshapes the core grocery moat.
What to watch
- Next-quarter DMart SSG print — stabilization near 7-8% vs further slip below 7%
- Quick-commerce GMV/city expansion data from Blinkit, Zepto, Instamart
- Gold price trajectory and jewellery same-store trends into festive season
- Revenue-per-store trend reversal signaling new-store maturity
- QSR LFL acceleration above 3-4% confirming discretionary recovery
- Track DMart Ready / quick-commerce response investment and any accelerated delivery footprint
- Monitor store-addition pace vs per-store productivity to gauge dilution runway
- Reweight toward jewellery-exposed names (Titan/CaratLane) over pure grocery SSG plays
- Watch for margin guidance revisions as expansion capex ramps against softer SSG