Margin pressure, limited operations under lockdown to continue for D-Mart

Lower sales of discretionary products to weigh on profitability

After outperforming its peers in the March quarter (Q4), Avenue Supermarts had a muted June quarter due to restrictions imposed on account of Covid-19. The company, which runs the DMart chain of stores, had a sharp 34 per cent fall in revenues in the June quarter. 

The decline was largely due to the impact of the pandemic, which resulted in the closure of half of its stores in the early part of the quarter. Given social distancing norms, the footfall, too, was weak. However, as compared to fashion retailers, the impact on Avenue was lesser, as more than half of its