Kirana stores are steadily losing market share to quick commerce

Quick commerce platforms are revolutionizing India’s retail sector, fueled by a sharp rise in spontaneous purchases driven by consumer impulse and the desire for immediate satisfaction. As per a report by Datum, Kirana stores’ market share fell from 95% in 2018 to 92.6% in 2023 and is projected to drop further to 88.9% by 2028.

The market share of traditional Kirana stores in India is steadily declining as quick commerce platforms grow in popularity. According to a report ‘State of Quick Commerce Market, 2024’ by Datum, the Kirana stores’ market share dropped from 95% in 2018 to 92.6% in 2023 and is projected to fall further to 88.9% by 2028, reflecting a shift towards online grocery shopping.

Quick commerce has emerged as the fastest-growing retail channel, with an expected 74% growth in 2024 and a compound annual growth rate (CAGR) of 48% during 2023–28. The report, based on a survey of 3,000 adults across 10 cities, noted that quick commerce is driving a significant channel shift from Kirana stores to online platforms.

“Prior to the advent of quick commerce, Kirana stores were the primary destination for unplanned grocery purchases due to their convenient locations and flexible operating hours”, the report said. The impact on Kirana stores is profound: 46% of quick commerce users have reduced purchases from these outlets, while 82% of buyers have shifted at least 25% of their spending to quick commerce platforms. Additionally, 5% of respondents have stopped buying from Kirana stores entirely.

In 2024, approximately US$ 1.28 billion worth of Kirana sales is expected to shift to quick commerce platforms, contributing 21% of these platforms’ projected total sales. Quick commerce platforms benefit from lower delivery costs and streamlined operations by eliminating intermediaries, allowing them to offer competitive prices.

This transformation highlights the challenges traditional Kirana stores face in keeping up with changing consumer preferences for convenience, speed, and affordability offered by quick commerce.