India's neighborhood grocery stores, numbering around 12 million, experienced a slowdown in sales in the last quarter of 2023, while quick-commerce firms gained market share. Companies like Marico, Dabur, and Parle noted challenges in profitability and liquidity for traditional kirana stores. Quick-commerce platforms like Swiggy Instamart and Zomato-owned Blinkit have contributed significantly to FMCG sales, accounting for 30-50% of e-commerce sales for these companies. Large packs of staples are gaining traction in quick commerce, challenging traditional growth in kirana stores.
