Will Kirana Stores and Quick Commerce Coexist in India
Should Kirana stores receive incentives to stock inventory at the levels Quick Commerce requires? This question is timely, as the rapid expansion of Quick Commerce has led to the closure of 200,000 Kirana stores across India. Offering 20-30% discounts on MRP, Quick Commerce has intensified competition in a way that Kirana stores, which usually sell at MRP, struggle to match.
Approximately 75% of these closures have taken place in metropolitan and Tier-1 cities. This trend leaves Kirana stores with limited options: they must either innovate, adopt new models, or risk obsolescence. Converting to “dark stores” may be viable for some, but it’s not feasible on a large scale.
The impact of Quick Commerce extends beyond unorganized retail; even well-known organized chains like Reliance Fresh, Spencers, and 24*7 have been forced to close locations. The driving force behind Quick Commerce’s appeal lies in its unbeatable convenience and discounts—consumers can order anytime, anywhere, and receive their goods at their doorstep, all at a lower price.
With such strong customer appeal, Quick Commerce has become a formidable competitor in the market. Is it possible to sustain Kirana stores under these conditions, or are we witnessing a fundamental transformation in the retail lan
dscape?