Avenue Supermarket at 5% LC

Avenue Supermarkets or D-Mart has been a star on the bourses for some days now as it these grocery and other essential goods providers whose demand has shot through the rood post the lockdown.

But to put things in the right perspective, the company gave an update about its current position.

The company said:

1: Nearly 50% of our stores remain closed for operations based on directive by the local authorities o Footfall at stores that are open, depends on movement and timing restrictions enforced by the local authorities. Overall, they are significantly lower than usual footfalls

2: We continue to sell daily use essential items such as grocery and FMCG products from all our stores and have stopped sale of non-essential items (General Merchandise and Apparel).

3: We have just commenced E-Commerce Home Delivery and Bulk Deliveries to large housing complexes across majority of our stores during the first week of April o Customers who have used the service have deeply appreciated these initiatives, however the sales from these channels are inconsequential.

4: E-Commerce and bulk deliveries to societies are initiatives implemented to only manage the current lockdown situation.

The stock did not react too well to this update. It opened 2.6% lower today at Rs.2345.50 and went on to hit the 5% LC at Rs.2287.90.