MRP Versus Discounts: Why Mumbai’s Kiranas Are Falling Behind Quick Commerce

A JPMorgan survey of 50 offline grocery stores in suburban Mumbai reveals that only 15% of kirana stores offer discounts below the maximum retail price, leaving them at a disadvantage against quick commerce platforms like Blinkit and Zepto and e-commerce players that benefit from brand-funded discounts.

The report notes that Mumbai’s traditional kirana stores are facing a steep challenge from these platforms, as a lack of competitive pricing threatens their survival. The survey found that 59% of these stores have been impacted, while larger stores continue to hold their ground and nearly all of them reported sales decline.

The study found that quick commerce platforms are increasingly capturing market share in packaged foods, with kiranas retaining their foothold in staples and daily essentials. Quick commerce players, armed with higher brand discounts, are becoming dominant in categories like snacks and ready-to-eat products. Meanwhile, kiranas offering essentials such as cooking oil, pulses, and rice batter have reported less severe impact on their business.

To counter the growing competition, kirana stores are diversifying their stock to include smaller pack sizes, traditional items like masalas and pickles, and refrigerated goods such as ice creams and beverages. 

Many stores are also leaning on their loyal customer base by enhancing personalised services, ensuring product availability, and offering home delivery. Some are now reporting up to 50% of their sales through home deliveries, a segment they are increasingly prioritising by relaxing minimum order sizes and speeding up delivery times.

Despite these efforts, 62% of the kirana store owners who were surveyed are calling for government intervention, citing an uneven playing field. Many say quick commerce platforms have an advantage due to better pricing strategies, enabled by brand and distributor discounts.

The survey also highlights how kirana owners in denser localities like Powai and Goregaon West are experiencing the steepest impact due to a higher density of modern apartment complexes and quick commerce adoption.