E-commerce drives over 200,000 kirana stores to closure
As the rise of quick commerce continues to impact traditional retail, many kirana store owners are facing an uncertain future
In the bustling streets of Indian neighbourhoods, kirana stores, or the neighbourhood grocery shops, that are often family-run, have been the backbone of local commerce for decades. Offering personalised service, credit facilities, and a sense of community, these stores have been more than just retail outlets, they are part of the social fabric of India.
However, ever since the pandemic outbreak, these Mom & Pop stores have been fighting an existential battle, trying to survive the rise of quick commerce platforms offering faster deliveries and attractive discounts.
According to a report by the All India Consumer Products Distributors Federation (AICPDF), over 200,000 kirana shops have closed down in the past year due to this shift in consumer behaviour.
The impact of this rapid shift is particularly felt in smaller towns and localities, where kirana stores have been a staple of daily life for decades. Shopkeepers who once relied on steady foot traffic now find themselves with dwindling customers, as people opt for the convenience of ordering groceries online with a few taps. The once-bustling aisles are now eerily quiet, and many store owners are forced to consider shutting their doors for good, unable to compete with the promises of swift deliveries and discounts offered by platforms like Blinkit, Zepto, and Swiggy Instamart.
Shopkeepers who once relied on steady foot traffic now find themselves with dwindling customers
According to AICPDF, the rapid rise of quick commerce platforms has had its greatest impact in metropolitan areas, accounting for 45 pc of the shutdowns, followed by Tier I cities, where 30 pc of all closures have taken place and the remaining 25 pc of the stores that have closed down are in Tier II or Tier III cities. Despite their deep community roots, kirana stores are increasingly being pushed out of the market by the allure of the digital shopping experience.
Shivam Kumar, a 56-year-old who has been running a Kirana store in South Delhi for over 30 years, describes the struggle.
“Technology has definitely evolved, and in many ways, it has been a great thing for businesses. But for us, it had a negative impact. While online platforms make shopping easier and faster for consumers, it is hurting our livelihoods. We can’t match the speed of delivery they offer, and that is pushing people away from us. What was once a thriving business is now struggling to survive, and it feels like we are being left behind,” Kumar tells Media India Group.
“We used to have loyal customers who would visit daily. Now, many of them also prefer online delivery services,” Kumar adds. For Kumar, the decline is not just a financial challenge but a personal one.
“This shop is my family’s legacy. Watching it suffer feels like losing a part of myself,” he adds.
As the rise of quick commerce continues to impact traditional retail, many kirana store owners are facing an uncertain future. With the overwhelming competition from online platforms. Despite their years of hard work and dedication, the reality is that many are contemplating shutting down their shops.
“After running this shop for over 35 years, I never imagined I would be in this position. I have seen generations of families come in, and I have always tried my best to offer them the best service. But the truth is, business is no longer the same. Customers don’t come as frequently anymore. They prefer ordering online because it is faster, and they don’t have to leave their homes. I have tried everything offering discounts, better customer service, even extending working hours but nothing seems to help. The competition is just too tough, and I can’t keep up with the technology and delivery promises that these online platforms are offering, my shop has been my family’s livelihood for so long, but I am starting to think I have no choice but to shut it down. I can’t continue like this,” Mohammad Kasim, who runs a shop at Rampur in western Uttar Pradesh, in northern India, tells Media India Group.
Across India, the story of kirana stores battling the onslaught of quick commerce platforms is strikingly similar, including in Maharashtra. Small shop owners, who once thrived on bustling customer footfalls, now find themselves sitting idle for hours, grappling with declining sales and dwindling foot traffic.
According to a survey by J PMorgan, a global leader in financial services, Mumbai’s traditional kirana stores are facing a steep challenge from these platforms, the survey found that 59 pc of these stores have been impacted, while larger stores continue to hold their ground and nearly all of them reported sales decline. For Pratik Thakur, one such store owner at Panvel, an extended suburb of Mumbai, this reality has hit home in the most disheartening way.
“I have been running this shop for since decades and I have seen everything change. There was a time when we didn’t even have time to sit, let alone take a proper lunch break. From early morning until late at night, there was a rush of customers. Now, most days, we are just sitting here, waiting for someone to walk in. The few customers we get are the loyal ones who have been living in this area for years. Otherwise, people don’t step out anymore they have everything on their fingertips,” Thakur tells Media India Group.
“It is not just the convenience of online platforms, it is the discounts, the speed of delivery, and the marketing that we can’t compete with. We are running at a loss now, and it feels like our efforts aren’t enough to keep up with this drastic change. This shop is not just a business for me it is my life, my identity, and how I have supported my family all these years. I am honestly not sure how longer we can survive. This change is making life incredibly difficult for small retailers like us,” Thakur adds.
According to report by ecommerce consultancy Datum Intelligence the rise of quick commerce has affected kirana sales, with 46 pc of quick-commerce shoppers reducing their purchases from these stores and more than 82 pc of buyers have moved at least 25 pc of their grocery purchases to quick commerce, while 5 pc have stopped buying altogether from kirana shops.
Quick commerce is expected to grow 74 pc in 2024, making it the fastest-growing channel as compared to e-commerce and kirana in the 2023-2028 forecast period, with an expected compound annual growth rate of 48 pc.
In Bengaluru, capital of the southern state of Karnataka, the situation of these shopkeepers is no different. While the city is known for its tech-driven innovations, it is also home to countless kirana shops that have long been the lifeline of many communities. However, the shift in consumer behaviour, driven by the allure of online platforms offering faster deliveries and attractive discounts, is leaving these shopkeepers struggling to hold onto their businesses.
“Nowadays, people are drawn to the huge offers that online platforms give, offers we just can’t compete with. We are already operating at a loss, and there is no way we can match the discounts or the lightning-fast delivery times they promise. It is not that we have not tried, we have offered our own discounts and tried to keep up with the trends, but it is just not working. Despite all our efforts, people prefer the convenience of having groceries delivered right to their doorsteps in minutes. My father used to sit in this shop for decades, and now I am here, trying to keep it going. This shop is not just a business, it is the source of our livelihood. We can’t close it, no matter how hard things get. It is part of who we are, but I honestly don’t know how much longer we can keep fighting,” Riya Kothari, 20-year-old shopkeeper in Hebbal area of Bengaluru, tells Media India Group.
For many urban consumers, the convenience of ordering groceries online has become an essential part of their daily routine. The rise of quick commerce platforms has transformed the way people shop, providing a seamless and time-efficient alternative to the traditional experience of visiting a physical store. For consumers like Aasian Bodra, a working professional in Noida near Delhi, the appeal is undeniable.
“I used to spend a lot of time going to the store, finding parking, and standing in long queues. It felt like a waste of time, especially when I could be doing something else. Now, I simply open the app, select the items I need, and in a few seconds, my order is placed. It is easier and the best part is, it arrives within minutes. There is no hassle of having to go out and deal with crowds or traffic. It is seamless, saves me time and makes my life a lot more convenient,” Bodra tells Media India Group.
“For me, online grocery shopping is no longer a luxury, it is a necessity that fits perfectly with my busy lifestyle,” Bodra adds.
With the pressures of modern life, more and more individuals are opting for the ease and speed of online grocery delivery.
With the growing popularity of quick commerce platforms offering attractive discounts and lightning-fast delivery, many consumers like Danish Manzoor, a resident of Jalandhar in Punjab is also opting for the convenience and affordability that these platforms provide. As traditional shopkeepers struggle to compete with the technological advancements of online retail, consumers are finding it harder to justify paying more for the same products at their local stores.
“If I can get huge discounts online and have my groceries delivered to my doorstep within minutes, why should I go out of my way to pay more and put in extra effort to buy the same products from a kirana shop? The convenience, the time saved, and the price difference make online shopping a no-brainer for me. I understand that kirana stores have been around for years, but when the convenience is so much better online, it is hard to justify sticking to the old ways,” Manzoor tells Media India Group, in what may sound like a death sentence to the owners of the countless kirana stores across India.
