Kirana Stores Face Business Decline Amid Rise of Quick Commerce

Kirana Stores Face Business Decline Amid Rise of Quick Commerce

Synopsis

Consumers are increasingly turning to quick commerce for everyday needs, leading to a reduced reliance on traditional kirana stores, a Grant Thornton Bharat report reveals. While kiranas remain vital for planned purchases, rapid expansion of platforms like Blinkit and Zepto is reshaping shopping habits, especially for groceries and personal care items, driven by convenience and speed.
As quick commerce is rapidly expanding across cities and categories, consumers’ reliance on local kirana stores has reduced in the past year, a recent report by Grant Thornton Bharat has revealed.

Per the survey, about 51% of participants said their reliance on kirana stores has reduced in the past 12 months. However, kirana stores continue to be the preferred channel for planned consumption.

“This does not indicate a loss of relevance; it reflects a redistribution. Consumers still visit kiranas, but for different kinds of shopping: planned purchases, routine top-ups, and trust-driven transactions,” the report noted.

Around 14% of respondents said their preference for kirana stores has increased over the past year, while 27% reported no change, the report — titled ‘Inside India’s Retail Reset: The Evolution of Neighbourhood Commerce’ — noted.

The survey included over 1,600 consumers and over 1,000 retail operators across the country.

Meanwhile, quick commerce platforms are gaining traction for specific categories like beauty and personal care, snacks and beverages, and fresh products like fruits and vegetables.

The survey data showed that personal and home care products account for 33% of purchases on such apps. Snacks and beverages make up 30%, followed by fruits and vegetables at 20%. Dairy and bakery products comprise 17%.

Consumer preference to shop for products in these segments on quick commerce is driven by convenience, fast delivery, and discounts.

This shift comes on the back of aggressive expansion of incumbents like Blinkit, Zepto, and Instamart, and new entrants like Amazon Now and Flipkart Minutes. As of the December quarter, Blinkit had 2,100 dark stores, Instamart 1,034.

ET reported on March 13 that Amazon Now is soon expected to have 500 dark stores after accelerating expansion from December, adding about two facilities a day. Similarly, Walmart-owned Flipkart’s Minutes, launched in August 2024, has been adding around 100 dark stores every month this year, according to people in the know.

This editorial summary reflects ET Tech and other public reporting on Kirana Stores Face Business Decline Amid Rise of Quick Commerce.

Reviewed by WTGuru editorial team.