Traditional Stores Blame Quick Commerce for Declining Sales, Call for Government Regulation

Traditional grocery stores are blaming the rise of quick commerce (q-commerce) and its dark stores for a decline in sales, calling for government regulation.

A JP Morgan survey of 50 offline grocery stores in suburban Mumbai found that 60% of them have seen a significant drop in sales, mostly due to the growth of q-commerce. The survey covered seven areas that together make up more than half of Mumbai’s dark store presence.

Key Findings:

• Sales Decline: 82% of store owners linked the sales drop to q-commerce, with 77% reporting losses of over 30%.
• Competitive Challenges: Many store owners claim that distributors and brands give q-commerce companies bigger discounts, putting traditional stores at a disadvantage.

Contradicting Claims:

Leaders in q-commerce, such as Swiggy’s co-founder Sriharsha Majety, argue that q-commerce targets online shoppers, not traditional kirana store customers. This view is also supported by Deepinder Goyal of Zomato’s Blinkit.

Regulatory Concerns:

62% of surveyed retailers believe the government should step in to create fair competition, possibly by limiting exclusive deals between q-commerce companies and their franchisees.

Adapting to Change:

Despite these challenges, 25% of stores are responding by diversifying their products, offering home delivery, bulk discounts, and using customer loyalty programs.

This study highlights the growing competition between traditional stores and the fast-growing q-commerce sector, raising questions about how the retail industry will evolve in the future.