Thread by @BiIndia

Did you know? #BigBasket makes more revenue than 32-year old #SpencersRetail

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By @Krittiiii

@Krittiiii The year 2020 has been a game changer for India Inc. in many aspects. From shopping to working, everything has taken a digital spin and the debate of ‘online vs offline’ has been getting much stronger.

#BigBasket #SpencersRetail #Retail

@Krittiiii Online grocers are cumulatively the third largest player in the market behind #DMart and #RelianceRetail, according to a report dated June 4 from the broking firm Motilal Oswal.

#BigBasket #SpencersRetail #Retail

@Krittiiii The three-decade-old Spencer’s, which has a strong presence across 191 stores across 42 cities, earned almost 30% less than a decade-old online grocery business BigBasket in FY20.

#BigBasket #SpencersRetail #Retail

@Krittiiii This trend is expected to be carried forward in FY21 as well, especially with the sort of growth #BigBasket has witnessed last year. Being the biggest player in the online grocery space, the company has doubled its daily deliveries to 3 lakh compared to pre-Covid days.

#Retail

@Krittiiii It is expected to be the strongest one yet at least in terms of the revenue growth. No wonder, #TataGroup was compelled to acquire #BigBasket in order to pursue its Super App dreams.

#Retail

@Krittiiii #Spencers, on the other hand, has reported receding revenue and widening loss during FY21. Though the company did test out a hybrid model by experimenting with online delivery in partnership with #Dunzo and #Uber last year, that doesn’t seem to have made much of a difference.

@Krittiiii Well, #BigBasket is actually much worse than #Spencers in terms of its losses. The company had been burning cash ever since its inception in 2011 and is nowhere close to profitability. Whereas, Spencer’s had hit profitability in FY19, but went back to reporting a loss soon after.

@Krittiiii Historically, the e-grocery segment has garnered a single-digit share of the overall organised grocery market in India, but 2020 brought these online grocery solutions to the forefront as stepping out of the house was no less than a health hazard, due to the pandemic.

#Retail