Archive · 11 Dec 2025
Kirana Stores Face Crisis from E-Commerce Boom
The Federation of Retailer Association of India (FRAI) says that many small grocery stores, called kirana stores, are having a hard time because people are buying more from online shops like Blinkit and Zepto.
These online shops offer big discounts and fast delivery, which makes it tough for the small stores to compete.
FRAI says that about 2 lakh kirana stores closed last year, and many more are struggling.
They want the government to help these small stores by giving them better technology so they can compete fairly.
Without help, many small stores might have to close, which would affect the livelihoods of many people.
FRAI also proposed a solution like Bharat Taxi for Kirana stores and highlighted the government-backed ONDC initiative to empower small retailers.
FRAI reports that 2 lakh kirana stores closed in 2023 due to the rise of e-commerce and quick-commerce platforms.
A 2024 study by JP Morgan showed that 60% of offline grocery stores in Mumbai have seen a decline in sales.
Digital platforms are reshaping consumer behavior through deep discounts, rapid delivery, and aggressive marketing.
FRAI appeals to the government for stronger support to create a fair, competitive environment for small retailers.
Many kirana store owners are being turned into delivery personnel or last-mile service agents, diminishing entrepreneurship.
- Who
- Kirana store owners and the Federation of Retailer Association of India (FRAI)
- What
- Rapid rise of e-commerce and quick-commerce platforms
- When
- Ongoing, with significant impact in 2023 and 2024
- Where
- India, particularly Mumbai
- Why
- Due to deep discounts, rapid delivery, and aggressive marketing by digital platforms
Small Retailers
E-Commerce Platforms
Competitive Environment
Small Retailers
Need government support to compete with deep discounts and rapid delivery of e-commerce platforms.
E-Commerce Platforms
Offering deep discounts and rapid delivery to meet consumer demand.
Entrepreneurship
Small Retailers
Many kirana store owners are being turned into delivery personnel, diminishing entrepreneurship.
E-Commerce Platforms
Providing opportunities for kirana store owners to become delivery personnel or last-mile service agents.
- Organization
- Federation of Retailer Association of India (FRAI)
- Membership
- 42 Retail Associations
- Kirana Stores Closed
- 2 lakh in 2023
- Sales Decline
- 60% in Mumbai (2024 study)
- Government Appeal
- Support for small retailers
- Consumer Behavior Change
- Shift to quick commerce platforms
- Impact on Entrepreneurship
- Conversion to gig-economy workers
- Proposed Solution
- Bharat Taxi like digital system for Kirana stores
- Government Initiative
- ONDC (Open Network for Digital Commerce)
