New Delhi, April 14, 2025: The small grocery stores that have been running for years in the streets and neighborhoods of India are now facing a new challenge – online delivery. Companies like Swiggy, Zomato, BigBasket, and Amazon Fresh are rapidly attracting customers, leaving many grocery shopkeepers feeling threatened for their livelihood. But are these online platforms really killing street grocery stores, or can the two co-exist together? Let's find the answer to this question with facts, figures, and expert opinions.
The rise of online delivery
Over the past five years, the online grocery delivery market in India has grown rapidly. According to a recent report, this market was worth $4.5 billion in 2023, and is expected to reach $12 billion by 2028 (Source: RedSeer Capital). Swiggy and Zomato have recently expanded their grocery delivery services, while BigBasket and Amazon Fresh have introduced 30-minute delivery (Quick Commerce). These companies are attracting customers through discounts, cashbacks, and convenient home delivery, especially in urban areas.
In 2024, Zomato recorded a growth of 150% in its grocery deliveries, while Swiggy showed a growth of 120%. These figures show that consumers are now preferring online options over traditional grocery stores. But this is affecting small shops in the streets, where many shopkeepers say that their customer base has decreased by 20-30%.
Grocery shopkeepers' concerns
Grocery shopkeepers in areas like Chandni Chowk in Delhi, Dongri in Mumbai, and Jayanagar in Bengaluru say that their business is being affected due to online delivery. Rajesh Kumar, a grocery shopkeeper, said, "We have been serving this area for 20 years. But now people are ordering goods from apps. Our delivery cannot be fast, nor can we give discounts." According to a survey, 65% of small grocery store owners said that their income has declined by 15-25% in the last two years.
The main complaint of grocery stores is that online platforms buy goods from big brands and suppliers at cheaper prices, making their prices lower than grocery stores. Apart from this, the facility of 24x7 delivery and Quick Commerce has attracted customers, which is challenging for traditional shops.
Are grocery shops really coming to an end?
However, experts believe that grocery stores are not going away yet, but they have to be prepared for change. According to a RedSeer Capital report, there are still more than 12 million grocery stores in India, covering 85% of the total retail market. The market for online delivery is still less than 15%, but it is growing rapidly.
Many grocery stores are now trying to adopt digital payments, home delivery, and social media marketing. For example, a grocery store owner in Lajpat Nagar, Delhi started home delivery to customers through WhatsApp groups, and his business grew by 20%. Apart from this, under the government's "Open Network for Digital Commerce" (ONDC) initiative, grocery stores are being brought on online platforms, so that they can also compete in the digital space.
Customer preferences and challenges
Customers say that online delivery is convenient, but the personal touch and immediate availability of goods at grocery stores is still their first choice. According to a survey, 70% of customers still shop from kirana stores, but 30% of people are now preferring online shopping. This trend is growing rapidly, especially among the younger generation and in urban areas.
#KiranaVsOnline and #GroceryDelivery are trending on social media. Many users have posted in support of kirana stores, saying that these shops are part of the local economy and community. One user wrote, "Online delivery is convenient, but the offer of kirana waale bhai sahab to have chai and personal service is not available anywhere."
Conclusion
Online delivery is definitely a challenge for street kirana stores, but it is not going away yet. Kirana stores have to adopt digital technology and provide additional value to customers. The government and startups also need to support these small businesses so that they can compete with online companies. This struggle will determine the future of not only kirana stores, but also the retail industry of India.
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