The All India Consumer Products Distributors Federation (AICPDF) has reported that more than two lakh kirana stores across India have closed in the past year, attributing the closures to the aggressive expansion of quick commerce and economic pressures, according to media reports.
Representing over four lakh FMCG distributors nationwide, the federation claims that quick commerce platforms are eroding the traditional retail landscape by engaging in deep discounting, predatory pricing, and monopolistic tactics, as per media reports.
According to a recent AICPDF study, these closures are highly concentrated in major metropolitan areas, accounting for 45 per cent of the affected kirana stores, followed by tier-one cities at 30 per cent, with tier-two and tier-three cities comprising the remaining 25 per cent. This disruption poses a significant threat to the livelihood of India’s estimated 13 million kirana stores, particularly as quick commerce brands capitalise on consumer demand for ultra-fast deliveries.
The AICPDF has repeatedly expressed concerns over the operational methods of quick commerce companies, alleging that many operate “dark stores”—warehouses that bypass traditional retail inventories and regulatory oversight. The federation argues that these tactics not only undercut kirana stores but also distort market pricing, creating an uneven playing field that could eventually destabilise the local economy.
The federation warns that if quick commerce brands continue their rapid expansion beyond metro hubs, an estimated 20-25 per cent of small retailers could face closure in the coming years, as per media reports.
According to media reports, the AICPDF has reached out to several government bodies, including the Competition Commission of India (CCI), the Finance Ministry, and the Ministry of Commerce and Industry, urging an investigation into quick commerce practices and regulations to protect small retailers. The federation has also raised issues with the Ministry of Road Transport and Highways, citing concerns over the use of uninsured private vehicles by some delivery platforms.
The rising trend of consumer expectations fueled by deep discounts from ecommerce giants, Treasurywala emphasised, could fall under anti-competitive practices, calling for urgent attention. "These practices disrupt the integrity of traditional distribution channels and harm brand value," AICPDF noted, urging authorities to implement regulations that preserve India’s traditional retail sector.
As these practices continue to reshape the market, AICPDF argues that a balanced approach is needed to support the heritage of India’s kirana stores and protect small businesses from further economic stress.
_20241126144533_original_image_32.webp)
