Avenue Supermart (D-Mart)

How does management think?

Disclosure: Please note that these are my personal notes and not a recommendation to Buy, Hold or Sell. Do your own due diligence before initiating any position.

In case you want to understand Indian Retail and how does D-Mart’s management think, you need to go through their transcripts.

The below excerpts are based on D-Mart’s Investor Meet in 2023. While its best to read the full in entirety here, the below pointers/highlights should enable you to quickly glance through some of the key observations which I had made:

# Can’t lose much money Vs How much money it will make?

# Acceptance of being lax and having lost a bit of a focus on General Merchandise & Apparel (‘GMA’)

Buffett in his last annual letter to shareholders wrote: “The cardinal sin is delaying the correction of mistakes or what Charlie Munger called ‘thumb-sucking,’” “Problems, he would tell me, cannot be wished away. They require action, however uncomfortable that may be.”

# Understanding definition of Break-even

# Where do we create moat?

# Why they don’t go to malls?

# Knowing Oneself

# Being Flexible

# Biz model & store construction, akin to LEGO model

# Where does Operating Leverage work?

# Private Label - Persistence Builds!!!

# Grand Vision Vs Small Experiments?

# Left Brain Vs. Right Brain

# Why is Pharmacy akin to Retail?

# Why there are no deliverables for the top leadership in the 1^st year? Also, Execution Vs Ideation?