A Tale Of Two Retailers - DMart And V-Mart: Systematix

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Systematix Research Report

Amidst the Covid-19 crisis, we analysed the business risks associated with the ‘cluster-based’ expansion strategy of Avenue Supermarts Ltd. and V-Mart Retail Ltd.

While almost 53% of DMart stores are clustered in Maharashtra and Gujarat, 57% of V-Mart stores are concentrated in Uttar Pradesh and Bihar.

A major slice of their business is impacted due to the restrictions and lockdowns imposed in their key markets to curb the rising number of Covid-19 cases.

We believe V-Mart is better placed than DMart given -

1. the lower infection rate in UP and Bihar,
2. comparable vaccination rate in these states despite lower spread and
3. less stringent regulations by the state/local authorities.

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