Rise of q-comm shutters 2 lakh kirana stores across India

The rapid expansion of quick commerce in India has led to the closure of around 200,000 kirana stores in the country in the past one year, India’s biggest retail distributors association the All India Consumer Products Distributors Federation (AICPDF) said on Monday.  

In a statement, the federation added that the sales of kirana stores this festive season have remained stagnant. Currently, India is estimated to have around 13 million of these stores, with over 10 million of them in tier-2 and smaller cities. 

According to Dhairyashil Patil, National President of AICPDF, quick commerce is eroding kirana stores’ customer base and profitability.

Also Read Bajaj Finance shares up 6% on stable Q2; stock 10% away from all-time high Paytm shares to remain in focus after NPCI nod to add new UPI users Wipro shares zoom over 5% after Q2 betters estimates; is it the right time to buy? Avenue Supermarts shares plunge over 9% on concerns about competition from online grocery platforms

“Deep discounting, combined with predatory pricing, has created an unfair playing field, eroding the customer base and profitability of kirana stores that have anchored our retail landscape for generations,” he said.

Also ReadBharti Airtel appoints Shashwat Sharma as MD, CEO

“These aggressive practices, coupled with the economic slowdown, are forcing many traditional retailers to shut their doors.”

In recent days, many consumer goods companies have said that the demand for their products on quick commerce platforms has increased due to shifting customer preferences. FE on Monday reported that several direct-to-customer brands are witnessing up to 250% higher festive sales on these platforms as compared to last year.  

The industry body highlighted that customer visits to kirana stores have fallen by almost half this year’s as compared to the last two-three years. It added that quick commerce is putting pressure on margins “as they struggle to match discounts offered by online and quick commerce platforms”. 

“These aggressive practices, which prioritise short-term customer gains over sustainable business practices, are directly responsible for the closure of nearly 200,000 Kirana stores across the country,” said PM Ganeshraam, chief patron at AICPDF. 

The data shared by the federation showed that the highest impact of quick commerce has been witnessed in metro cities. Out of the total,

 » Read More

Related Articles

FII longs in index futures at lowest this month, says Geojit’s Anand James

By Anand James Will the pain ease? The break below 20 and 50 SMAs in quick succession followed by a close below 200 SMA on Friday has apparently extinguished hopes of Santa rally and have brought in fears of an extended period of downsides. But, favoured view sees higher prospects of a sideways move with

Global action at this hour – Here are top 5 global cues to watch ahead of market opening

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a subdued start on Tuesday following Asian markets opening on a mixed note in early trade hours.  Previously, on Monday, the NSE Nifty 50 closed the session 166 points or 0.70% higher at 23,753, while the BSE Sensex rose 498

Credit card spending drops 16% in Nov as festive demand cools

Credit card spending moderated in November 2024, followed by strong festive demand in October 2024, reporting a ~16.1% drop month on month (MoM) to ~Rs 1.7 tr. Spending through Point-of-Sale (PoS) transactions dropped by ~14% MoM whereas online spending declined by ~17.5% MoM. This was largely on expected lines, given the high base due to

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

FII longs in index futures at lowest this month, says Geojit’s Anand James

By Anand James Will the pain ease? The break below 20 and 50 SMAs in quick succession followed by a close below 200 SMA on Friday has apparently extinguished hopes of Santa rally and have brought in fears of an extended period of downsides. But, favoured view sees higher prospects of a sideways move with

Global action at this hour – Here are top 5 global cues to watch ahead of market opening

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a subdued start on Tuesday following Asian markets opening on a mixed note in early trade hours.  Previously, on Monday, the NSE Nifty 50 closed the session 166 points or 0.70% higher at 23,753, while the BSE Sensex rose 498

Credit card spending drops 16% in Nov as festive demand cools

Credit card spending moderated in November 2024, followed by strong festive demand in October 2024, reporting a ~16.1% drop month on month (MoM) to ~Rs 1.7 tr. Spending through Point-of-Sale (PoS) transactions dropped by ~14% MoM whereas online spending declined by ~17.5% MoM. This was largely on expected lines, given the high base due to

Tracking buzzing stocks: Tata Motors, Adani Enterprises among top gainers; PowerGrid, JSW Steel Among the Top Losers on December 24 – Check complete list...

Indian benchmark equity indices ended the day on a lower note (December 24),  with the headline indices, Sensex and Nifty, closing in the red in a rangebound session. The BSE Sensex ended the day at 78,472.87, down by 67.30 points or 0.09 per cent, while the NSE Nifty ended at 23,727.65, shedding  by 25.80 points

NSE, BSE to trade sideways on weekness in global market, says Religare Broking

By Ravi Singh Benchmark indices are expected to trade on a negative sideways note on the last expiry of 2024, influenced by global market weakness and concerns over India’s CPI inflation rate. Last week, the Nifty index dropped nearly 5% but opened on a positive note this week after testing its support level of 23,500.