In December 2023, Avenue Supermarts Limited, operating as DMart, celebrated its robust performance in the offline retail sector in India. Since its establishment in 2002, DMart had built a sizable network of profitable offline stores, showcasing industry-leading metrics. However, its online subsidiary faced losses, prompting the management to confront pivotal decisions for future expansion. The management grappled with the choice of expanding its physical stores and deliberated on the strategic approach: Should it broaden geographically or deepen existing clusters? Simultaneously, they confronted the challenge of resource allocation for the online business amid intense competition and recent financial setbacks. DMart’s leadership stood at a crossroads, weighing options to sustain offline success while addressing the complexities of online market dynamics and profitability.
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