Avenue Supermarts Ltd
NSE:DMART
Operating Margin
Avenue Supermarts Ltd
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Operating Margin Across Competitors
| Country | Company | Market Cap |
Operating Margin |
||
|---|---|---|---|---|---|
| IN |
|
Avenue Supermarts Ltd
NSE:DMART
|
2.6T INR |
6%
|
|
| ZA |
S
|
Shoprite Holdings Ltd
JSE:SHP
|
148.8B Zac |
5%
|
|
| CA |
|
Loblaw Companies Ltd
TSX:L
|
67.7B CAD |
6%
|
|
| US |
|
Kroger Co
NYSE:KR
|
47.5B USD |
3%
|
|
| CA |
|
Alimentation Couche-Tard Inc
TSX:ATD
|
65.2B CAD |
5%
|
|
| JP |
|
Seven & i Holdings Co Ltd
TSE:3382
|
5.6T JPY |
4%
|
|
| NL |
|
Koninklijke Ahold Delhaize NV
AEX:AD
|
32.3B EUR |
3%
|
|
| UK |
|
Tesco PLC
LSE:TSCO
|
28.1B GBP |
4%
|
|
| ZA |
P
|
Pick N Pay Stores Ltd
JSE:PIK
|
27.5B Zac |
1%
|
|
| CA |
|
George Weston Ltd
TSX:WN
|
34.5B CAD |
7%
|
|
| AU |
|
Woolworths Group Ltd
ASX:WOW
|
37.9B AUD |
4%
|
Avenue Supermarts Ltd
Glance View
Avenue Supermarts Ltd., the owner and operator of the popular DMart chain, emerged on the Indian retail landscape with a unique business model that has become a textbook case of operational efficiency and consumer appeal. Founded by Radhakishan Damani in 2000, the company’s inception was defined by a keen understanding of middle-class India’s shopping psyche. By focusing on densely populated urban and suburban areas, DMart built its reputation as a low-cost provider of essential goods. Their stores are a treasure trove of groceries, household staples, and personal care items sold at competitive prices. This strategic emphasis on core, fast-moving consumer goods, coupled with a no-frills approach to store design and operations, enables Avenue Supermarts to maintain lean margins while driving high volumes of sales. Every facet of their operation is finely tuned for efficiency— from sourcing and supply chain management to in-store inventory practices—enhancing their ability to offer discounts that consistently draw consumers into their brick-and-mortar outlets. Financially, Avenue Supermarts’ profitability hinges on executing the art of quick inventory turnover and cash flow management. The company typically purchases goods in bulk, directly negotiating with manufacturers to secure lower prices and better terms. This allows them to pass on savings to customers, thereby strengthening loyalty and repeat business. Additionally, their focus on self-owned stores, rather than leasing, reduces fixed costs and shields them from rental inflation, permitting long-term cost competitiveness. As a result, Avenue Supermarts generates revenue primarily through high sales volumes, underpinned by a fundamental business strategy that intertwines cost leadership with frugality and customer satisfaction. Their successful model illustrates how understanding and executing fundamental retail principles can create a robust marketplace presence, capturing both the hearts and wallets of a diverse consumer base across India's sprawling urban landscapes.
See Also
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Based on Avenue Supermarts Ltd's most recent financial statements, the company has Operating Margin of 6.1%.
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