Shelf-Made Success: DMart Banks on Its Own Brands for Fatter Margins

Image Source: Value Research

Strategic Change:
With fast commerce redefining customer expectations, the DMart owner Avenue Supermarts Ltd. is going full throttle with private labels to guard margins and remain competitive. The retail chain is broadening its own label product portfolio beyond food segment staples to homecare and personal care segments, with a view to providing value-based alternatives in the context of increasing input costs and weak discretionary spends.

Growth Drivers:.
Private labels have more price power and greater profit margins

Penetration within the high-speed home and personal care segments

Strategy involves replicating successful ones like Tata Trent's Star Bazaar, where private labels account for over 70% of category sales

Competitive Landscape:
Rapid commerce companies like Blinkit and Zepto are eating into urban market share

DMart's store sales growth has decelerated, and a switch to margin-led categories is required.

Store openings remain conservative, with a focus on maximizing product assortment

Industry Insight:
This move is hand in hand with a broader trend across value retail, where private labels are increasingly becoming the first choice for being value-priced and brand-differentiated. As FMCG giants shift strategies, retailers like DMart are carving out their own space in the consumer wallet.

Sources: Mint Bangalore, Economic Times, NDTV Profit