DMart may fight Reliance Retail with steeper discounts, wider spread

Retaining loyalty will be key, say analysts

Avenue Supermarts, which runs the DMart chain of stores in India, is now a distant number two after the coming together of Reliance Retail and Future group in a nearly Rs 25,000-crore transaction. The combine now has a third of the organised retail market in India. But the bigger threat for DMart is that the Reliance-Future combine now has grocery revenues that are nearly 2.5 times that of it, putting pressure on the former to improve stickiness of its consumers.

"Retaining loyalty will be key in a market where the largest player has become even larger," says Devangshu Dutta, chief