Struggles of Indian Grocers

by Deepak Sharma on Friday, May 06, 2011

Stark Reality check for Indian Mom & Pop (called Kirana) stores.

Why Indian grocers' biggest worry isn't the Walmarts

The problem of traditional retail is not competition. The challenges lie at home, within their business model. Though footfalls and phone calls haven't lessened much, profitability of mom-and-pop stores is hit by rising operating costs. They pay higher rent and wages but profit margins on various products have either shrunk or remain stable.
Hoping for a surge in sales is unrealistic. Mom-and-pops target customers close to their location. This number is largely stable over five to ten years. Limited by capital, few can offer an exclusive deal or inventory that compels customers to drive long distances to shop at their store.