Kirana Stores Struggle As Impulse Buying Drives Quick Commerce Boom: Report
Datum Intelligence found that 46% of consumers shifted from Kirana shops to apps like Blinkit.
Quick commerce platforms are reshaping India’s retail landscape, driven by an unprecedented surge in unplanned purchases, fuelled by consumer impulse and the need for instant gratification. A report by Datum Intelligence showed that 75% of online grocery shoppers have significantly increased unplanned purchases in the last six months, with average order values exceeding Rs 400.
The ability of quick commerce platforms to deliver essential items within minutes has positioned them as the preferred choice for consumers seeking speed and convenience. Platforms like Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes have capitalised on this trend, offering a seamless shopping experience that traditional Kirana stores struggle to match.
The report highlights that nearly half (46%) of consumers have cut back on spending at Kirana shops as they shift to quick commerce platforms for their grocery needs. This change is attributed to the instant delivery and competitive pricing offered by these platforms, which eliminate multiple intermediaries relied upon by traditional retailers.
The surge in unplanned purchases underscores a broader shift in consumer behaviour. "The increased confidence in receiving grocery items within 10 minutes through quick commerce platforms has led to a surge in impulse buying," the report said.
Quick Commerce’s Growth Trajectory
Quick commerce, valued at $6.1 billion in 2024, is projected to grow to $40 billion by 2030, marking a compound annual growth rate of 48%. These platforms are set to capture $1.28 billion in Kirana sales by 2024, making up 21% of their total revenues.
Beyond groceries, quick commerce has diversified into categories like electronics, clothing, cosmetics, medicines, and pet supplies, further solidifying its appeal to modern consumers.
Fate Of The Kirana Store
Once the cornerstone of India’s grocery market, Kirana stores are now facing an existential threat. The report revealed that 82% of respondents have shifted at least one-fourth of their grocery spending from Kirana shops to quick commerce platforms. With consumers increasingly prioritising speed and convenience, traditional retailers are struggling to keep pace with the evolving demands of the market.
The findings, based on a survey of 3,000 adults across 10 cities, show how quick commerce has disrupted the retail ecosystem by aligning with modern consumer needs. As impulse buying continues to rise, the gap between quick commerce platforms and traditional retailers is expected to widen, reshaping India’s shopping habits.
