When Q-com emerged, many predicted the downfall of traditional brick & mortar retail. Yet, DMart remains profitable, even as competitors like Big Bazaar falter and cash-burning quick commerce startups face sustainability challenges.
Quick commerce struggles with the “distribution” or “last mile” problem—getting products to customers’ doors involves significant costs: fuel, labor, delivery logistics, and tech infrastructure.

DMart’s Advantage?
DMart skips the last mile entirely. Customers come to them for unbeatable prices.

💰 Unit Economics:
DMart: Centralized stores are selling in bulk, with thin margins but on a massive scale.
Quick Commerce: High costs—delivery fees, labor, discounts (funded by VC cash), and expensive customer acquisition.
Those deep discounts offered by Q-coms? They’re funded and do not reflect true profitability. DMart, on the other hand, works on a sustainable model that prioritizes efficiency and volume.

📖 The Playbook:
DMart adhered to these four principles:
~Own the stores: Avoid rental costs
~Strategic locations: Operate in residential areas rather than costly malls.
~Low-cost operations: Simple store designs, bulk shopping options, and prices 6–15% below MRP.
~Slow growth—focusing on profitability before opening new stores.
No frills, no hype, and no instore promotions

🛒 Simplicity > Hype
While quick commerce startups burn through cash for customer acquisition, DMart focuses on:
~Operational efficiency: Streamlined processes and cost control.
~Vendor relationships: 7-day payment vs. the industry standard of 30+ days
Word-of-mouth marketing: Great prices drive customer loyalty and free promotion.

📈 Challenges and Bold Moves Ahead
Yes, DMart’s growth has slowed, and it’s adapting to new challenges by establishing itself in online grocery through DMart Ready. This segment saw a robust 21.8% growth in H1 FY2025, highlighting its ability to evolve.

The Bottom Line
~Big Bazaar collapsed due to overambitious expansion.
~Quick commerce struggles with unsustainable costs.
~DMart thrives by mastering the basics: operational efficiency, customer value, and a sustainable growth strategy.
DMart proves that technology can disrupt not every industry. Simplicity, strong fundamentals, and an unyielding focus on efficiency often win in the long run.
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What do you think? Can quick commerce ever match a business like DMart, or will fundamentals always prevail?

amardeep.kaur@resconpartners.com | + posts

Amardeep is a retail analyst who studies global retail trends and forecasts across diverse sectors, offering insights into the market dynamics, opportunities, and challenges faced by businesses. Her expertise spans both market-wide and city-level analysis, helping organizations navigate the complexities of the retail landscape with informed, data-driven perspectives.

Rescon Partners | radhika.r@resconpartners.com | Website | + posts

Radhika is a retail analyst specializing in tracking multinational retailers on their strategy, with a focus on "Go-To-Market" approaches. Radhika examines each potential retailer in-depth, across the geographical scope of the USA, APAC, UK, and Europe