The exit of Pioneer Kishore Biyani’s Future Group is indeed an industry shaping event and one that highlights that winners will be few even though the opportunity for modern retailing in India is large. Online & multichannel Retailing Growth will be captured by large-scale, efficient players that are relentlessly focussed on delivering a superior value proposition to consumer (through better prices, sharp assortments, and convenience). A country of India’s size can easily accommodate 4 to 5 large scale national players. We see this consolidation as a sign of rising barriers to entry, which is positive for Avenue Supermart’s D-Mart Hypermarket Stores.
Reliance Retail and Future Retail combined will be larger than DMART. Given the superior and meticulous execution skills of DMart management, it is (more…)