Going Cashless: Kirana Stores Vs Supermarkets Vs Ecommerce Giants
Karnataka Today|February 2017

Demonetisation and government’s move for a less cash (not cashless) society has pushed the Kirana stores to compete with supermarkets and ecommerce giants with their pos terminals. They have lost business post Nov. 8th and are now scrambling to innovate to stay in business. Some of them have managed to do that, while others cannot due to their location and clientele. Yet they have found a way around that too – they offer a month’s credit. Prajwala Hegde has more…

Prajwala Hegde
Going Cashless: Kirana Stores Vs Supermarkets Vs Ecommerce Giants

Demonetisation has received a mixed response across industries and the public so far. The intention has been applauded but the implementation has drawn flak. Irrespective of the long term implications, one of the worst affected are small traders and businesses.

Kirana (provision store) owners feel cornered, especially considering the competition they already face from retail supermarkets and the large number of players in the online retail segment such as Grofers, Big Basket and Nature’s Basket.

Even online shopping giant Amazon has started delivering groceries, which lets customers choose from their preferred online supermarket on their website and get it delivered to their doorsteps.

A slew of online grocery stores are offering discounts, loyalty programmes and free home delivery options. They are engaged in aggressive marketing campaigns to pull in more consumers who are spoilt for choice.

The Confederation of All India Traders (CAIT) - one of the largest trade associations in India – says businesses “in markets across the country have shrunk 25 per cent” because of demonetisation.

CAIT says the annual quantum of Indian retail trade is about Rs. 42 lakh crore. Retail trade per day is approximately Rs. 14,000 crore per day, of which nearly 40 per cent is conducted through business-to-business ventures. The remaining 60 per cent is directly with consumers.

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