DMart Ready Shuts Online Grocery Service In 7 Cities As Quick Commerce Competition Intensifies

The retailer has discontinued DMart Ready operations in seven cities to focus on larger metro markets, while its physical stores continue to expand across India.

By Vidhi Lalla 

Pune: DMart operator Avenue Supermarts has discontinued its DMart Ready online grocery delivery and pickup service in seven cities as it sharpens its focus on larger metropolitan markets amid growing competition from quick-commerce platforms such as Blinkit, Zepto and Swiggy Instamart.

The company announced the move while declaring its financial results for the first quarter of FY2027, saying the affected cities contributed only a small share of its online business.

Clarifying that the decision is part of a business strategy and not a broader shutdown, Vikram Dasu, Whole-Time Director and CEO of Avenue E-Commerce Limited, said the company is refining its online operating model while concentrating resources on markets with stronger demand.

“We continue to deepen our focus in large metro cities while improving our model. During the quarter, we discontinued operations in seven cities that were marginal contributors. As of June 30, 2026, we operate in 11 cities,” Dasu said.

The company, however, did not disclose the names of the seven cities or specify when the services were discontinued.

DMart Ready was launched as an extension of DMart’s successful low-cost retail model, offering scheduled home deliveries and store pickup options instead of the rapid delivery model followed by newer competitors. However, India’s grocery market has changed significantly in recent years, with quick-commerce companies promising deliveries within 10 to 30 minutes and rapidly expanding their presence across urban India.

Industry analysts believe the shift in consumer preferences towards instant deliveries has increased pressure on traditional online grocery models that rely on scheduled delivery slots.

Interestingly, the strategic pullback comes at a time when DMart founder Radhakishan Damani has increased his exposure to the quick-commerce sector. Earlier this year, he acquired a stake in Eternal, the parent company of Blinkit, through open market transactions.

Despite scaling back operations in some cities, Avenue Supermarts reported healthy financial performance during the quarter. Standalone revenue for the quarter ended June 30, 2026, rose 15.1 per cent year-on-year to ₹18,343 crore, while net profit increased 12.8 per cent to ₹936 crore. The company’s EBITDA margin improved marginally from 8.2 per cent to 8.3 per cent.

The retailer also expanded its physical footprint by opening three new stores, taking its total store count across the country to 503.

However, the company noted that sales growth at older stores remained under pressure. Managing Director and CEO Anshul Asawa said stores that have been operational for more than two years recorded growth of 5.5 per cent, compared with 7.1 per cent during the same period last year. Mature stores in large metro cities witnessed largely flat growth, while non-metro markets continued to perform better.

Alongside the operational changes, Avenue Supermarts also announced a management reshuffle. The board has reappointed Bhaskaran N as Whole-Time Director and Chief Operating Officer from October 17, 2026, to May 31, 2028, subject to shareholder approval. He will continue to oversee retail operations.

The company has also appointed Lalit Ahuja as Chief Operating Officer from July 13. Ahuja brings experience from companies including Philips India, General Mills, Dabur, Godrej Consumer Products, Mars and Apple.

Meanwhile, outgoing COO Parvez Vandrewala will assume the role of Head of the Centre of Excellence from November 1 while continuing as part of the senior management team.

The latest move reflects the changing dynamics of India’s retail sector, where established supermarket chains are increasingly adapting their online strategies to compete with fast-growing quick-commerce platforms while continuing to strengthen their offline retail presence.

FAQs

1. Is DMart shutting down completely?
No. DMart stores are not closing. Only the DMart Ready online grocery service has been discontinued in seven cities. Physical DMart stores continue to operate normally.

2. Why did DMart Ready stop operations in seven cities?
According to the company, the affected cities contributed only a small share of revenue. DMart is restructuring its online business and focusing on larger metro markets.

3. Which seven cities have been affected?
Avenue Supermarts has not officially revealed the names of the seven cities where DMart Ready services have been discontinued.

4. Is DMart Ready still available?
Yes. As of June 30, 2026, DMart Ready continues to operate in 11 cities, primarily focusing on larger metropolitan areas.

5. Why is DMart facing stronger online competition?
Quick-commerce platforms such as Blinkit, Zepto and Swiggy Instamart have rapidly expanded by offering deliveries within minutes, changing consumer expectations and intensifying competition in the online grocery market.

6. How did DMart perform financially despite the online pullback?

The company reported ₹18,343 crore in revenue and ₹936 crore in net profit for the June 2026 quarter, reflecting year-on-year growth in both revenue and profitability.

Disclaimer: The closure applies only to selected DMart Ready online grocery operations and does not affect the functioning of physical DMart stores across India.