Sales Dip more than 50% of Mumbai’s Offline Grocery Stores as Q-Commerce Grows claims Study
Sales Dip more than 50% of Mumbai's Offline Grocery Stores as Q-Commerce Grows claims Study
Traditional stores attribute declining sales to competition from quick commerce and its dark stores, with calls for regulatory intervention.
A JP Morgan survey of 50 offline grocery stores in suburban Mumbai reveals that 60% have experienced a significant drop in sales volume, primarily due to the rise of quick commerce (q-commerce) and its reliance on dark stores. The study covered seven localities that collectively represent over 50% of the city’s dark store footprint.
Key Findings:
• Major Sales Declines: 82% of respondents linked the downturn to q-commerce, with 77% reporting sales losses exceeding 30%.
• Competitive Disparities: Many store owners allege that distributors and brands offer q-commerce players higher discounts, leaving traditional retailers at a disadvantage.
Contradicting Claims:
Q-commerce leaders argue that their services target a different audience. Swiggy co-founder Sriharsha Majety suggests that q-commerce attracts online shoppers rather than diverting business from traditional kirana stores. This sentiment is echoed by Deepinder Goyal of Zomato’s Blinkit.
Regulatory Concerns:
About 62% of surveyed retailers advocate for government intervention to create a level playing field. Potential regulations could include restricting exclusive agreements between q-commerce companies and their franchise partners.
Adapting to Challenges:
Despite the challenges, 25% of respondents are fighting back by diversifying inventory, offering home delivery, bulk discounts, and leveraging customer loyalty.
This study highlights the growing tensions between traditional retailers and the rapidly expanding q-commerce sector, raising questions about the future balance in the retail ecosystem.
