Rapid rise of quick-commerce hampering kirana shops’ income: Industry body
New Delhi, Dec 10 (LatestNewsX)—The rapid spread of e‑commerce and quick‑commerce services across India is sharply hurting the income and way of life of thousands of local grocery and kirana shopkeepers, the Federation of Retailer Association of India (FRAI) warned on Wednesday. The federation, which represents about 8 million micro, small and medium retailers nationwide and is made up of 42 retail associations, called on the government to step up support for small retailers that are now facing an existential threat from the growing dominance of e‑commerce and quick‑commerce platforms.
Citing market research, FRAI said that at least 200,000 kirana stores shut down last year after consumers shifted to on‑demand services such as Blinkit and Zepto. It also added that a December 2024 JP Morgan study of offline grocery shops in Mumbai revealed that 60 percent of them had experienced a drop in sales volume because of the proliferation of dark‑store quick‑commerce operations.
Over recent years, digital platforms have reshaped buying habits with deep discounts, rapid‑delivery promises and aggressive marketing, leaving small retailers struggling to keep pace on an uneven playing field. Consequently, many kirana shops are seeing a steep decline in footfall and sales, FRAI noted.
“Small retailers and kirana shopkeepers are facing an unprecedented challenge as e‑commerce and quick‑commerce platforms reshape the market. These enterprises, built over generations, are now struggling to survive against players with deep pockets and aggressive strategies,” said Abhay Raj Mishra, Member and National Coordinator, Indian Sellers Collective and Honorary Spokesperson, FRAI.
“We believe the government must urgently step in to create a fair, competitive environment and empower local retailers with the right technology,” he added. He warned that the way large, often foreign‑funded e‑commerce and quick‑commerce firms interact with the small‑retailer ecosystem is compounding the problem. Instead of empowering shop owners, many of these platforms are turning them into delivery personnel or last‑mile agents, his assessment said. This shift turns once‑independent proprietors into gig‑economy workers with uncertain income and little protection.
“Given this grim trajectory, there is an urgent need for a fair, well‑designed support model that protects the interests of small retailers and local entrepreneurs,” FRAI noted. Without intervention, the backbone of India’s informal retail economy risks collapse—along with the livelihoods of millions of shop owners who have long been the heart of community commerce.
The retailers gathered in this event urged the government to provide a dedicated technology platform for local kirana stores, enabling them to compete fairly with quick‑commerce giants and operate on an equal footing. They acknowledged the growing consumer demand for faster delivery, greater convenience and competitive pricing, and expressed readiness to embrace digital tools, improve efficiency and raise customer service standards.
aps/na
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