Avenue Supermarts reports 18% rise in Q3 consolidated net profit [Retailing]
AI Summary1 min read
TL;DR
Avenue Supermarts raised Rs 100 crore through a Commercial Paper issuance. The company uses an ownership model for stores and focuses on cluster-based expansion in densely-populated areas to serve middle-class consumers.
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RetailingRetailing
The company operates and manages all their stores. They operate predominantly on an ownership model (including long-term lease arrangements, where lease period is more than 30 years and the building is owned by it) rather than on a rental model. The company opens new stores using a cluster approach on the basis of adjacencies and focusing on an efficient supply chain, targeting densely-populated residential areas with a majority of lower-middle, middle and aspiring upper-middle class consumers. The company operates distribution centres and packing centres which form the backbone of the supply chain to support the retail store network.