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After muted Q2 show, DMart's sales may gain traction in third quarter

Margin trajectory, however, depends on festival season discounts, share of general merchandise

DMart
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Brokerages highlight that the recovery for grocery-led retailers was faster and the trend should improve led by growth across segments

Ram Prasad Sahu Mumbai
Aided by a gradual recovery following the easing of lockdown restrictions, retail chain Avenue Supermarts (DMart) reported a sequential uptick in the second-quarter performance. Sales in the quarter were up 37 per cent over the June quarter, though they were down 12 per cent from the year-ago levels.

Most sales were still for essentials (staples and fast-moving consumer goods or FMCG), even as there was some uptrend in general merchandise and apparel. 

The company highlighted that the recovery in mature stores or units, which are at least two years old, is 87.5 per cent in September, with regards to the year-ago period.