Why Dmart Isn’t Joining the 10-Minute Quick Delivery Race: Expert Insights

As the quick commerce segment rapidly grows, players like Zepto, Blinkit, and Swiggy Instamart are dominating the space with promises of 10-minute grocery deliveries. Surprisingly, Dmart, a leading retail giant with approximately 381 outlets across 10 states, one Union Territory, and NCR, has chosen not to jump on the bandwagon. Industry experts suggest that this strategic decision aligns with Dmart's operational philosophy and long-term business model.

A Look at Dmart’s Current Strategy

Dmart has built its reputation on offering competitive prices, a wide range of products, and a unique warehouse-style shopping experience. To cater to the growing demand for online grocery shopping, Dmart introduced its "Dmart Ready" service, which delivers products within 12 hours and allows customers to select convenient time slots.

While "Dmart Ready" provides a practical solution for planned grocery needs, it is far from the ultra-fast delivery model adopted by its quick-commerce competitors.

What Experts Say

1. Thin Margins Limit Flexibility

“Dmart operates on a low-margin, high-volume model. Introducing a 10-minute delivery service would require significant investment in infrastructure, manpower, and technology,” explains retail analyst Rohit Sinha. “The additional costs could erode their margins and disrupt the pricing advantage they currently hold.”

2. Impact on Store Footfall

Dmart thrives on footfall-driven sales, where customers buy in bulk, often resulting in higher basket values. Retail expert Anjali Verma highlights that quick delivery might alter consumer behavior. “If customers start relying on 10-minute deliveries for smaller, impulse purchases, it could affect the high-volume sales that Dmart stores depend on,” she notes.

3. Logistical Challenges

Unlike quick-commerce players who rely on a network of hyperlocal warehouses in metro cities, Dmart operates across urban and semi-urban regions. According to supply chain expert Arvind Menon, “Setting up a hyperlocal infrastructure for quick delivery in diverse geographies is a logistical challenge. It doesn’t align with Dmart’s current operational setup, which focuses on centralized distribution and cost efficiency.”

4. Quick Delivery Market Sustainability

The 10-minute delivery market, though growing, faces challenges such as high delivery costs, rider attrition, and customer retention. “Quick commerce is not as lucrative as it seems. Many players are still figuring out profitability. Dmart’s cautious approach shows it is prioritizing sustainable growth over jumping into a highly competitive space,” says e-commerce consultant Priya Desai.

Playing the Long Game

Dmart appears to be doubling down on its core strengths: affordability, reliability, and customer trust. By focusing on its "Dmart Ready" service, the company caters to customers who prioritize cost-effectiveness and planned shopping. This long-term approach could help Dmart sustain its market dominance without compromising its established business model.

Will Dmart Eventually Enter Quick Commerce?

While Dmart has not indicated any plans to enter the 10-minute delivery market, experts believe the company may explore the space selectively in the future. However, any such move is likely to be calculated and aligned with its operational philosophy.

Conclusion

Dmart’s decision to stay out of the quick delivery race underscores its focus on stability and customer value. By prioritizing a sustainable model over speed, Dmart is carving its path in a highly dynamic retail landscape. For now, the company remains content to play the long game, letting its competitors tackle the challenges of the ultra-fast delivery market.