Avenue Supermarts, the parent company of the national supermarket chain D-Mart, continues to expand its property portfolio as part of its growth strategy. The company has recently acquired approximately 50,000 square feet of commercial space spanning four floors within a residential tower in Kandivali, a suburb of Mumbai.
Avenue Supermarts has secured ownership of 17 commercial units spanning from the ground floor to the tower’s second floor, with a total investment of over Rs 88.74 crore. These properties will be utilised to establish a hypermarket store and were acquired from the project developer, Gauri Land Developers LLP, among others.
The company management, led by billionaire Radhakishan Damani, has confirmed its commitment to opening 40 new stores in the current fiscal year, emphasising store expansion as a pivotal focus area for the retail giant.
Avenue Supermarts inaugurated a new store in Morbi, Gujarat, this week, increasing its total number of supermarket outlets to 333. The company also completed the payment of stamp duty amounting to Rs 4.04 crore for the transaction registration on August 24. Additionally, as part of the agreement, the company gains exclusive access to 44 car parking slots within the Gauri Excellency Tower.
In the fiscal year 2022-23, the company expanded its retail space across the country by 1.9 million square feet, with sales per square foot averaging Rs 31,000.
Neville Noronha, MD and CEO of Avenue Supermarts expressed confidence in the future of brick-and-mortar retail, stating, “All Covid-19 related issues are behind us. We are very bullish on the brick-and-mortar business, and we continue to focus on this area. We believe a huge opportunity exists to excel in the brick-and-mortar business.”
Despite contacting Damani and Noronha for comment, The Economic Times has yet to receive a response at the time of publication.
It’s worth noting that Avenue Supermarts typically acquires real estate assets outright for its retail expansion, a departure from the standard leasing model employed by other retail chains.
Avenue Supermarts opened its inaugural store in Mumbai in 2002, situated in the Powai suburb, and currently operates 333 stores spanning across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, the National Capital Region, Tamil Nadu, Punjab, and Rajasthan.
The Mumbai-based company boasts several brands, including D Mart, D Mart Minimax, D Mart Premia, D Homes, and Dutch Harbour.
In recent headlines, Damani and his family have been making notable property acquisitions, including a portfolio of luxury residential apartments worth Rs 1,500 crore in central Mumbai and a Rs 1,001 crore bungalow in south Mumbai.
