Grocery stores in India are facing a severe crisis due to the swift expansion of quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart.
A study conducted by the All India Consumer Product Distributors Federation (AICPDF) found that 200,000 grocery stores have closed in the past year. Consumers are opting for fast delivery services instead of traditional shopping.
India has around 13 million grocery stores, especially in metro and Tier-1 cities, which are under intense pressure. According to the AICPDF study, most closures are happening in major metropolitan areas, accounting for 45% of the total.
In Tier-1 cities, 30% of closures were reported, while Tier-2 and Tier-3 cities recorded 25% each. The expansion of quick commerce in urban areas, competitive pricing strategies, and the challenge of customer retention are creating additional challenges for traditional stores.
Offers provided by quick commerce platforms are attracting people. However, emphasizing the need for fairness in the retail sector, AICPDF has requested the Ministry of Finance and CCI (Competition Commission of India) to review these pricing strategies and consider steps to protect small retailers