DMart prioritises store network expansion as JioMart and Blinkit lead online shopping surge

Indian retail major DMart is prioritizing long-term growth through an aggressive store expansion strategy, even if it delays short-term profitability, according to the latest CLSA (Credit Lyonnais Securities Asia) India Weekender - ALL THINGS INDIA report. CLSA is a leading brokerage and investment group in Asia that provides research, analysis, and insights on markets and companies across the region.

The report notes that DMart plans to grow its store network by 15-20 per cent annually, a move aimed at building scale, reach, and sustained profitability rather than solely countering instant delivery apps. Currently, the company has visibility over 2,200 stores , and near-term free cash flow is expected to remain minimal or negative due to rapid expansion. Global examples like Walmart and Costco suggest that cash balances turn significantly positive once expansion slows and operations become routine.

To strengthen its competitive edge, DMart is expanding its private-label brands , which are priced 40-50 per cent lower than leading brands and, in some cases, cost only a third as much. While quick commerce apps like Blinkit and JioMart are growing, CLSA expects these services to account for less than 20 per cent of urban consumption by 2035, underscoring the continued importance of physical retail stores.

On the digital front, weekly app usage for the week ending December 8 shows JioMart leading in weekly active users , closely followed by Blinkit . While many e-commerce players saw a dip in users, Meesho expanded its user base to 169.8 million, highlighting evolving online retail trends.

Despite digital growth, traditional retailers like DMart remain focused on expanding physical stores to secure long-term profits and maintain a strong market presence.