Slowdown, share market crash, real state downturn is tuning the fortunes of kirana stores. Kirana stores have seen increase in sales by 25% in the present quarter. Kirana stores which were victim of organized retail and see a massive decline in their sales over a period of time are thankful to slowdown as consumers prefer them over organized retailers. Consumers are trying to be less extravagant and so are refraining from overspending in malls and organized super markets and convenience stores.
Generally when a consumer goes to a mall for his monthly grocery purchases, he ends up buying many products as an impulse purchase and not a necessity. But with this slowdown and salary cuts in picture, they are not willing to overspent and stick to their shopping list. So, we may see attracting offers in coming months as retailers will try to lure consumers to visit them.
- 
Rajeev Damani 
Email
Print
Loading ...
November 16th, 2008 at 8:37 pm
“Kirana stores have seen increase in sales by 25% in the present quarter.”
sez who?????
November 17th, 2008 at 3:37 pm
I guess “says” Eco Times….
Incidentally, I have confirmed this shift myself, on a 22 member sample size, iver the last 2 weeks or so.
All of the 22 are in the age group 35-35, MHHI in the range of 80-110K, spread across NCR, Kolkata & Chennai. Basically SEC-A+.
20 out of 22 (including my wife) were regulars at organised retail (min 1/week).
Though 12 have stopped visiting malls altogether, 10 have reported slightly lower to lower attendances (say 1 in 10 days or so) BUT, almost everyone said that they have stopped “browsing” through merchandise at organised retail like Food Bazaars or the likes. Instead, they call up / send the domestic help / children, to pick up items required immediately, from the neighborhood Kiranas.
As I do my shopping on my own, thanks to my singular status in Delhi, I must admit a similar trend in my shopping too!
That’s amazing as I, till recently, was a shopaholic.
I am not sure how many of our readers go grocery shopping (a la Amir Khan in the new Tata Sky+ TVC) on their own. If they do, it may be a good idea to poll.
RD: That brings me to a dream of mine, forming an in-house research panel, with members we know very well. To be polled (mandatory) weekly, on current topics. What say?
November 18th, 2008 at 2:59 pm
Hi JC,
Ya Sen is correct. Figures are from Economic
Times.
Hi Sen,
Sorry for late reply! I guess polling is a wonderful idea. We can do it