The rapid rise of quick commerce—like Zomato and Zepto—has led to numerous neighbourhood stores shutting down, with estimates suggesting losses in the hundreds of thousands. The pandemic accelerated this trend, prompting consumers to prioritize convenience offered by online delivery services. Yet, while many retailers struggle, analysts argue that the retail ecosystem can coexist, provided that traditional shops innovate and adopt technology.
**The Impact of Quick Commerce on India's Traditional Retail**
**The Impact of Quick Commerce on India's Traditional Retail**
Online delivery apps are drastically reshaping the landscape of retail in India, pressuring traditional corner shops to adapt or close their doors.
The sharp pivot towards online shopping reflects a broader shift in consumer behavior, but it has left many longtime store owners facing critical challenges that threaten their livelihoods.
As the sun sets on a bustling Mumbai street, corner shop owner Ramji Dharod reluctantly prepares to close the shop that has served the community for 75 years. After six decades of customer engagement, Dharod's once-thriving store has seen business plummet as online delivery apps dominate the market. With cardboard boxes of unsold snacks lining the walls, Dharod acknowledges, “I wouldn’t get a minute to breathe a few years ago, but now I rarely get anyone coming. They are all shopping online." His sentiment echoes a crisis facing countless neighbourhood retailers across urban India, struggling to survive against the onslaught of 10-minute delivery services.
Recent reports indicate that approximately 200,000 small shops have closed nationwide, with significant losses observed across major urban centres. For instance, Chennai's municipal authorities reported a staggering 20% decline in small grocers and a 30% reduction in larger departmental stores over five years—trends that paint a dire outlook for traditional commerce.
Sunil Kenia, another corner shop owner nestled beside Dharod's store, reflects on the post-Covid era's impact: “Business is at 50% of what we did before the pandemic.” He states that most of his revenue now stems from wholesale customers, with retail shoppers becoming a rare sight due to the convenience of digital options.
Convenience appears to be winning over human connection; graphic designer Monisha Sathe exemplifies this shift. Although she appreciates the vibrant atmosphere of local markets, Sathe gravitates towards the ease of online shopping: “Lugging groceries back home was a big pain… for me, the balance still tilts in favor of online deliveries.” This transformation in consumer preference is echoed by a PwC survey indicating that nearly 42% of urban consumers opt for quick commerce.
However, disparities remain. Ankur Bisen from Technopak retail advisory suggests that quick commerce, while threatening general trade, is currently a major urban phenomenon. “It’s still a three-to-four city story,” he notes, highlighting the challenges of scaling beyond densely populated areas.
While the allure of rapid deliveries appeals to many, trade organizations have voiced concerns over predatory pricing tactics used by these companies, which they argue undermine small retailers. Groups like the Confederation of All India Traders assert that the aggressive expansion of these platforms, fueled by venture capital, distorts competition and jeopardizes mom-and-pop stores.
Conversely, sources within quick commerce companies argue that their platforms democratize access to consumer goods, enabling small brands to reach customers without shelf space constraints in traditional stores.
Analysts maintain that the intricate nature of India's retail landscape signifies a cohabitation of diverse retail models—traditional shops, organized retailers, and quick commerce entities. Mr. Bisen reminds us that e-commerce, thought to erode local markets, still accounts for only 4% of total shopping in India years after its emergence.
The road ahead for corner shops is not solely bleak. By leveraging technology and improving their marketing strategies, traditional retailers can adapt to remain relevant alongside evolving consumer expectations. Competing with the click-of-a-button delivery ethos, they are urged to innovate or risk fading into history. As India's shopping habits continue to evolve, the future of retail may see a blend of old and new, shaping unique shopping experiences for consumers.
As the sun sets on a bustling Mumbai street, corner shop owner Ramji Dharod reluctantly prepares to close the shop that has served the community for 75 years. After six decades of customer engagement, Dharod's once-thriving store has seen business plummet as online delivery apps dominate the market. With cardboard boxes of unsold snacks lining the walls, Dharod acknowledges, “I wouldn’t get a minute to breathe a few years ago, but now I rarely get anyone coming. They are all shopping online." His sentiment echoes a crisis facing countless neighbourhood retailers across urban India, struggling to survive against the onslaught of 10-minute delivery services.
Recent reports indicate that approximately 200,000 small shops have closed nationwide, with significant losses observed across major urban centres. For instance, Chennai's municipal authorities reported a staggering 20% decline in small grocers and a 30% reduction in larger departmental stores over five years—trends that paint a dire outlook for traditional commerce.
Sunil Kenia, another corner shop owner nestled beside Dharod's store, reflects on the post-Covid era's impact: “Business is at 50% of what we did before the pandemic.” He states that most of his revenue now stems from wholesale customers, with retail shoppers becoming a rare sight due to the convenience of digital options.
Convenience appears to be winning over human connection; graphic designer Monisha Sathe exemplifies this shift. Although she appreciates the vibrant atmosphere of local markets, Sathe gravitates towards the ease of online shopping: “Lugging groceries back home was a big pain… for me, the balance still tilts in favor of online deliveries.” This transformation in consumer preference is echoed by a PwC survey indicating that nearly 42% of urban consumers opt for quick commerce.
However, disparities remain. Ankur Bisen from Technopak retail advisory suggests that quick commerce, while threatening general trade, is currently a major urban phenomenon. “It’s still a three-to-four city story,” he notes, highlighting the challenges of scaling beyond densely populated areas.
While the allure of rapid deliveries appeals to many, trade organizations have voiced concerns over predatory pricing tactics used by these companies, which they argue undermine small retailers. Groups like the Confederation of All India Traders assert that the aggressive expansion of these platforms, fueled by venture capital, distorts competition and jeopardizes mom-and-pop stores.
Conversely, sources within quick commerce companies argue that their platforms democratize access to consumer goods, enabling small brands to reach customers without shelf space constraints in traditional stores.
Analysts maintain that the intricate nature of India's retail landscape signifies a cohabitation of diverse retail models—traditional shops, organized retailers, and quick commerce entities. Mr. Bisen reminds us that e-commerce, thought to erode local markets, still accounts for only 4% of total shopping in India years after its emergence.
The road ahead for corner shops is not solely bleak. By leveraging technology and improving their marketing strategies, traditional retailers can adapt to remain relevant alongside evolving consumer expectations. Competing with the click-of-a-button delivery ethos, they are urged to innovate or risk fading into history. As India's shopping habits continue to evolve, the future of retail may see a blend of old and new, shaping unique shopping experiences for consumers.
