Avenue Supermarts CEO Neville Noronha believes quick commerce has been the big structural change in the retail landscape, one that has allowed small enterprises to reach their audiences at very low costs. He said the format is 'significantly smarter' than digital platforms, and is more relevant to India.
In an exclusive conversation to CNBC-TV18, Neville Noronha highlighted this as the big structural change in the post-pandemic modern retail business in India. "Quick commerce that could have huge scale and digitally enabled micro enterprises which can reach their small tiny audiences at very low costs and also a resurgence of differentiated / unique touch & feel retail / QSR / Cafes," CNBC-TV18 quoted him.
Noronha admitted that there has been a marginal impact on Avenue Supermart due to the emergence of value retailers in the apparel space. However, he added that there is 'value retailing embedded in quite a lot of large format retail and digital commerce,' adding that this will only get larger.
Many analysts had expressed concerns over the pace of addition of stores, to which Noronha responded, "External world is tracking how many more stores DMart is adding every year. We worry about how well the new stores added are being managed. I think that’s the only delta in priorities." Having said that, DMart would like to add "as many stores as possible and as fast as is possible." When asked if there is sufficient supply of real estate for store additions, Avenue Supermarts CEO said it is a challenge, "It’s quite clear what we cannot do fast, they (digital commerce) can. But I think quick commerce is a significantly smarter format than digital platforms."
"Digital e-commerce is the next big challenge for us all. Either market place or quick commerce," Avenue Supermarts CEO said when asked about competition in the retail space. "Reduced organized competition in the brick and mortar space has not in any ways benefitted us," Neville Noronha said.
You can read more about D-Mart CEO's exclusive and rare interview on the business, store addition and digital challenges right here.
"While we will be able to compete, it is the sudden disruption of General Trade that needs to be keenly watched." Noronha said, adding that being among the top five retailers of the country will be fine, even as competition in retail seems to be coming from digital as well as quick commerce platforms. A country of India's proportions will need to be served by a 'significantly larger set of large retailers', Noronha added.
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