The recovery was driven primarily by a higher base of store operational days – 79 percent- in Q2, as compared to 34 percent in the April-June quarter that witnessed a nationwide lockdown owing to the COVID-19 pandemic.
The company’s total revenue recovered to 56 percent of last year, while like-to-like (LTL) sales stood at 50 percent of last year, it said in the statement.
Even in the second quarter, VMart lost around one-fifth operational days due to prolonged lockdowns extending into early September in its two largest markets, Uttar Pradesh and Bihar.
A spurt in COVID-19 cases in tier iii and IV towns in the two states in Q2 impacted customer footfalls even when stores were operational.
VMart has 271 stores across 19 states across the country.
“The sequential rebound in Q2 came despite the delayed onset of the festive season starting with Navratras and Dussehra by almost three weeks into Q3,” the company said.
“On the macro front, phase-wise acceleration in unlocking, pent-up consumer demand, and overall resumption of economic activity collectively supported the revival of discretionary consumption in the second quarter,” it added.
The company temporarily renegotiated lease agreements with landlords, to generate rental savings of Rs 19 crore so far.
“With the onset of festive and winter season and a definite bounceback in consumer sentiment, we are maintaining a sharp focus on market and customer dynamics and trends in the current environment, to ensure our supply chain and business response is agile,” Lalit Agarwal, CMD, VMart said.