2 lakh Kirana stores forced to close due to rise of quick commerce platforms, says AICPDF

India's small neighbourhood stores, or kiranas, are facing a significant impact from the rapid growth of quick commerce platforms such as Blinkit, Zepto, and Swiggy Instamart.

According to a study by the All India Consumer Products Distributors Federation (AICPDF), over two lakh kirana stores have closed in the last year as customers increasingly choose fast delivery services over traditional shopping.

India’s Kirana network, with an estimated 13 million stores nationwide, has traditionally anchored local retail, yet this trend threatens its viability, especially in metro and Tier 1 cities.

Impact of quick commerce across city tiers

The AICPDF study highlights that Kirana closures are most concentrated in metropolitan areas, where 45% of the reported closures occurred.

Tier 1 cities account for 30% of the total closures, followed by Tier 2 and Tier 3 cities at 25%. The proliferation of quick commerce in urban areas, combined with competitive pricing strategies, has made it increasingly difficult for Kiranas to retain customers.

Dhairyashil Patil, national president of AICPDF, notes that the rise in quick commerce and deep discounting has created a severe challenge for Kiranas, once resilient against various market changes.

Concerns over predatory pricing and regulatory calls

Quick commerce platforms are under scrutiny for what the AICPDF describes as “predatory pricing” practices, with discounts that Kirana stores struggle to match.

Patil said that quick commerce players often offer deep discounts to attract customers, making it difficult for Kiranas to compete profitably.

Citing concerns about fairness in the retail landscape, AICPDF has appealed to government bodies like the Finance Ministry and the Competition Commission of India (CCI) to examine these pricing tactics and consider protections for small retailers. 

In a recent address, Finance Minister Nirmala Sitharaman mentioned the government’s awareness of these issues, promising to consider policies to protect smaller retailers from aggressive discounting tactics.

The CCI has also been investigating similar complaints against larger e-commerce firms, raising the potential for future action in the quick commerce segment.

Shifting consumer preferences and the digital transition

As consumer preferences lean towards quick and convenient deliveries, traditional Kirana stores are experiencing reduced foot traffic and lower sales.

While these stores have historically managed competition from supermarkets, they now find it challenging to keep up with the tech-driven convenience of quick commerce.

Many kiranas are now looking to adopt digital methods, with some beginning to accept orders through WhatsApp or launching their own delivery systems to retain local customers.

Market reports show that more customers, especially in urban areas, prefer the instant access and discounts offered by quick commerce platforms.

According to NIQ, an analytics firm, 31% of urban consumers are now turning to quick commerce for their shopping needs, particularly for groceries and ready-to-eat items.