There’s been a lot of chatter lately about quick commerce and— especially neighbourhood kirana stores— being locked in some kind of rivalry. Some argue that one must replace the other, but this is an oversimplification of how retail functions. The reality is far more nuanced.

Dark stores are experiencing rapid expansion in India, with the global dark store market projected to reach $275.5 Bn by 2032, growing at a staggering 38% CAGR. This shift underscores the increasing role of in ecommerce fulfillment and logistics.

However, this does not signal the decline of kirana stores—the true backbone of Indian retail. Instead, these small-format stores are adapting to new consumer trends and leveraging technology to remain relevant.

Instead of fading away, kirana stores are embracing ecommerce channels and unlocking additional revenue streams by parallelly transforming themselves into micro-fulfillment centers with their own-delivery capabilities.

Since 2020, over 3 Mn Kirana stores in India have adopted some form of digital technology, ranging from mobile payments to inventory management. They are upgrading fast.

These stores thrive by capitalising on their core strengths—hyperlocal reach, deep-rooted customer relationships, and credit access—advantages that large retailers and dark stores cannot replicate.

According to the Retailers Association of India, 70% of kirana stores recognise the importance of partnering with delivery platforms and technology providers to ensure long-term growth.

Today, aside from existing customer footfall, many have enlisted their kiranas as merchant partners of major online platforms to cater to their demand. This has resulted in a spike in their overall earnings. That’s the power of adaptation.

Dark stores and kirana stores are not competitors but rather two essential components of the evolving retail ecosystem. Dark stores specialise in speed, inventory management, and efficient fulfillment of online orders for marketplace platforms and direct-to-consumer (D2C) brands.

These facilities typically cater to non-grocery categories such as beauty, personal care, apparel, health and wellness, and electronics.

On the other hand, kirana stores dominate in grocery essentials, impulse purchases, and customer loyalty—offering a level of trust and familiarity that quick commerce cannot replicate.

Their hyperlocal presence ensures immediate access to everyday needs, further strengthening their role as indispensable neighborhood hubs.

Retail has always functioned across multiple formats, each addressing different consumer needs. Just as cloud kitchens have not replaced traditional restaurants and online pharmacies have not eliminated local chemist shops, kirana stores and dark stores serve distinct purchasing behaviors.

Quick commerce platforms are optimised for instant fulfillment, while kirana stores cater to planned household purchases and repeat customers.

Additionally, both models contribute significantly to local employment. As kirana stores expand their operations, they create opportunities for delivery personnel and support staff, bolstering community-driven economic growth.

Many online marketplaces and quick commerce platforms are now collaborating directly with kirana owners to optimise last-mile delivery, reducing carbon footprints by leveraging existing store infrastructure.

Tech platforms are introducing AI-powered demand forecasting tools to help kirana owners stock smartly, reduce wastage and ensure better inventory turnover. Customer preferences are shifting towards convenience and instant gratification, but with a personal touch— kirana stores are uniquely positioned to offer both, blending online efficiency with offline trust.

A partnership-driven approach is essential for building a resilient retail ecosystem capable of withstanding future disruptions—whether another pandemic or paradigm shifts in consumer behavior.

The narrative of kirana stores being replaced is flawed. Instead, they are evolving into digitally enabled fulfillment hubs that complement, rather than compete with, quick commerce platforms.

Retail’s future lies in collaboration, where traditional and modern retail formats work together to enhance convenience, efficiency, and accessibility for consumers.

By fostering an integrated ecosystem, brands, platforms, and local kirana stores can thrive—ultimately benefiting the end consumer. The transformation is well underway, and this is just the beginning.

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