Across the country, small retailers like the local supermarkets, individual meat shops, and pharmacies are being wiped out slowly. As per a report by Statista, the number of grocery retailers in 2020 across India was at 12.8 million and this included both the traditional (individual Kirana stores) and the big organized players within the segment. There was a consistent growth in retail store numbers from 2013. A large part of it was due to the increase in the number of traditional stores. Organized retailers in this sector were just over 8K outlets, making a mere 0.05% of store numbers during this period. But that was way back in 2013. Now the market has taken a drastic change due to the entry of online shopping.
Circa 2021, the small and individual retailers are not just threatened by big organized players but also by online grocers. The online grocery market in India is estimated to increase from US$1.9 million in 2019 to US$ 18.2 billion in 2024, expanding at a CAGR of 57%. This has created a huge dent in the business of offline retail outlets.
Now the eCommerce retailers are not just encroaching on the business of individual retailers but also the physical space. The likes of Flipkart, Amazon, Grofers, and Reliance Retail among others are investing in retail outlets that will act as a support system for their online presence and also like mini-distribution centers for neighborhoods. Recently, Reliance Retail announced its plan for an opening around 5,000 outlets called the Reliance Smart Point across the country with each outlet spread over 2,000-5,000 square feet. And an average supermarket is normally spread over 1,200 to 2,000.
The recent COVID-19 pandemic has affected the small and individual supermarkets badly with some of them even shutting shop due to lack of business. But the online retailers have immensely benefitted from it and their online sales have surged 2-9 times during the pandemic. With the encroachment of both business and physical space, it might force some more individual retail outlets to shut their business.
So, how do the retail outlets overcome this onslaught?
Adopting an omnichannel approach, one that requires the physical stores to have an online presence while continuing to serve their customers offline. Blocal is the right platform that enables just that. The platform offers a virtual storefront for small businesses like supermarkets, meat shops, fruits & vegetable outlets, and pharmacies.
Blocal acts as a bridge connecting the online customers and their favorite local supermarkets in the neighborhood. Contact us now to get an exclusive online space for your business.
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