In an era where convenience, quality products and speed of instant delivery are the order of the day, grocers are vying to capture footfalls by offering all three. “Small is big” is the current buzzword, what with economic slowdown, high real estate costs, and fear of taking investment risks. Big retail chains are also restructuring their business to focus on smaller stores, neighbourhood formats, and small cities. Examples that come to mind are that of KB’s Fair Price and Sahara Q that have opened kirana-like shops with similar product-mix, albeit with the look and feel of a modern store.
In fact, many kirana store owners have shown great alacrity in upscaling to modern stores, while leveraging their personal connect with the community in their catchment They are transforming their business model, revamping the interiors by incorporating shopfits and display shelves, upgrading to automated billing systems, operating a self-service layout, and enhancing their merchandise assortment to meet the changing needs of modern-day shoppers.
Organised food and grocery retail holds only 3 to 4 percent share in the overall retail landscape; so there is a huge scope for it to get more organised over time, Shifting consumer preferences are also motivating traditional mom-and-pop stores to embrace modern retail practices and formats.
Read about the ‘modern wave’ that is changing the food and grocery retail landscape in our story ‘The Store Next Door’ in December 2013 issue of Progressive Grocer.