Is the Future of Convenience in India?

More than 16 million “mom-and-pop” stores may be setting precedent for the nation … and the world.

April 09, 2015

NEW YORK – While it may seem that countries like the U.S. – with its increasingly ubiquitous insta-everything and 152,000-plus convenience stores – would be on the cutting edge when it comes to the future of convenience, some suggest that looking East may actually provide a better example. In an article this week for Supermarket News, Neil Stern, senior partner at McMillanDoolittle, writes about what he calls “the ultimate in proximity retailing” as it exists today in India.

Stern goes on to describe how kiranas, or mom and pop grocery stores, are prevalent in India where organized retail is estimated to account for just 8% of the total retail trade, according to Technopak, a leading Indian consulting firm. There are an estimated 16 million of these independent stores throughout the country, roughly one store for about every 70 Indians.

“These stores are small, unsophisticated as we would know them and often lacking in the basics — no refrigeration or freezers,” writes Stern. “Yet, they can pack a lot of assortment and intimately understand the needs of their consumers.”

While there are efforts underway from the large international retailers to modernize the trade, India’s low standards of living, lack of infrastructure and complicated logistics will hamper widespread growth. Yet, when retailers look at global growth, India’s one billion-plus consumers are a compelling target. Walmart, for example, is now operating on its own in the country using a format called Best Price, which is a cash-and-carry concept loosely modeled after Sam’s Club and designed to serve the independent grocers and foodservice operators in the country.

Advertisement
Advertisement
Advertisement