Mom & pop stores vs new kids: India's ubiquitous kirana stores have a new rival (2024)

Synopsis

Tech-enabled players running self-service outlets like Frendy, SuperK, and Kirana King are challenging traditional kirana stores post-Covid. These modern trade stores have digital apps for orders and sourcing, contributing 4% to FMCG sales and up to 10% in premium categories.

Mom & pop stores vs new kids: India's ubiquitous kirana stores have a new rival (1)

The ubiquitous kirana store has a new rival - dozens of tech-enabled companies that run thousands of neighbourhood stores and have either entered the grocery market or raised funding after the Covid-19 pandemic.

For fast-moving consumer goods (FMCG) companies, these self-service outlets, including Gujarat-based Frendy, Telangana's SuperK, Apna Mart from Bihar and Rajasthan's Kirana King, now account for 4% of their total sales, compared to less than 1% before the pandemic. In premium categories, their contribution is much higher at 8-10%.

Unlike traditional kirana stores, where operations such as billing and sourcing are manual, the new-age retail chains have digital apps for orders and delivery as well as the advantage of centralised sourcing.

"These are like modern trade stores but much smaller in size. There is a rise in such stores and put together, there should be around 10,000 outlets across India, giving a tough fight to larger modern trade outlets like Reliance as they understand the local nuances better," said Krishnarao Buddha, senior category head for marketing at Parle Products, India's biggest foods company.

Frendy store

While smaller supermarket chains such as Ratnadeep, Vijetha, Patel's R Mart, Ondoor, Arambagh, Shubham K Mart and Magson have existed for more than a decade, the number of such franchise-led grocery chains has surged, mostly in smaller towns. Take, for instance, four-year old Frendy, which has 25 outlets as marts and warehouse to 2,000 micro-kiranas. It has about 100 people working in its in-house technology team. Similar is the case with Kirana King and SuperK, which runs 100 outlets each, and Apna Mart, which has 50 outlets.

"Our hub and spoke supply chain model is built on an in-house suite of digital apps which includes a point of sale software digitally connected to the central warehouse for automatic replenishment of stock so that shelves are always full. On the front end the micro kirana app and the customer app allow digital ordering and delivery all trackable on the app and includes payments, returns and refunds," said Frendy's co-founder Sameer Gandotra.

Globally, corner shops including 7-Eleven in Japan, Taiwan, Thailand and Singapore, Lawson in Japan and Oxxo in Mexico are among the largest retailers in their respective markets, reflecting the growing business of small outlets in several countries despite the presence of international supermarket and hypermarket chains. With many smaller format stores such as EasyDay, More and Spencers either getting shut or rationalised, the new-age retail chains have leased their properties to retain the catchment's existing customers.

These startups have attracted investors, too. For instance, Frendy has raised $5 million while SuperK has raised $6.5 million so far. Apna Mart and Kirana King too have raised funding, $13 million and $1 million respectively. Osia Hypermarket Magsen and Ondoor raised funds through small and medium enterprises initial public offerings.

Companies also said they use these stores for launching new products since they are highly tech-driven and can share insights and data easily.

"It is a growing channel for us as it gives a new experience to consumers, where they can go and pick up products themselves. And that's great for new product launches, because it's easier for the consumer to know about a new launch. For newer products, these outlets account for about 8-10% of the sales," said Wipro Consumer Care and Lighting CEO Vineet Agrawal.

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FAQs

What are mom-and-pop stores in India? ›

In India, mom-and-pop stores are typically neighbourhood grocery stores. Apart from being social connectors for the local community, they also serve as an informal credit source, especially in rural areas. Customers can buy on credit on a weekly or monthly basis.

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Which retailers are also called pop and mom store? ›

Mom-and-pop stores historically were local family-owned-and-operated general stores or drugstores. Today, mom-and-pop establishments are synonymous with various different types of businesses, including restaurants, bookstores, automotive repair shops, and insurance agencies.

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What is the meaning of Kirana store? ›

(in India) a small, usually family-owned shop selling groceries and other sundries.

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How many Kirana stores are there in India? ›

Going by numbers, there are 13 million kirana stores in India, contributing to 90% of the food and grocery retail.

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Why mom and pop stores are better? ›

A mom-and-pop shop usually operates in a single location. It provides personalized products and services to the local community. Mom-and-pop shops gain competitive advantages through their personalized products, interactive service, and customers' concept of supporting the local economy.

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Why is it called mom and Pop store? ›

mom-and-pop store in Retail

A mom-and-pop store is a small retail store owned and operated by members of the same family. Centralized markets, brand recognition, and industrially produced goods gradually undermined the position that local mom-and-pop stores enjoyed and placed it instead in the hands of manufacturers.

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What is the mom and pop rule? ›

An exception known as the “Mom and Pop Exception” will allow you to deduct up to $25,000 in rental real estate losses per year if you actively participate in the rental activity and your Adjusted Gross Income (AGI) is below $100,000. Owning rental property doesn't just have to be for high-income individuals!

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What is an example of a mom and pop shop? ›

Mom-and-Pop is a popular informal phrase that refers to a small independent firm run by family members. These businesses are usually brick-and-mortar establishments. Family-owned retail outlets include grocery shops, bookshops, restaurants, cafes, bakeries, pharmacies, and automotive repair shops.

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When did mom and pop stores start? ›

A “mom and pop” store is a colloquial phrase for a small, family-owned, independent business. In the 18th and 19th centuries, and particularly by the 1880s, these stores were plentiful throughout the United States.

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What is Kirana called in English? ›

grocery countable noun. A grocery or a grocery store is a grocer's shop. [Am] kirana countable noun. In India, a kirana is a small grocery shop or general store.

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What is an example of a Kirana store? ›

Expert-Verified Answer. (b) Private sector. Kirana stores are neighbourhood shops that sell items of daily use such as groceries, tobacco, cleaning supplies, and so on. The term "kirana" refers to the small mom-and-pop shops that still account for the majority of India's $932 billion retail economy.

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What is the difference between grocery and Kirana? ›

Commodities. A supermarket boasts of a huge variety of commodities as compared to kirana stores and hence holds a slight edge over the kirana stores as all the requirements of a customer are served under one roof. Kirana stores are limited to grocery and small quantity purchase.

Why are Kirana stores important in India? ›

Kirana stores have been an integral part of India's retail industry. These stores are generally family-owned businesses that have flourished on personal relations, knowing local client needs, and providing convenience that large stores cannot match.

How many mom and pop stores are there in India? ›

MUMBAI: Mom-and-pop shops, known locally as kirana stores, can be found all over India – on busy city streets, the tiniest of lanes in slums, and even hard-to-reach rural areas. Industry estimates peg the number of kirana stores nationwide at more than 12 million.

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Who is the biggest retailer in India? ›

India's largest retailer Reliance Retail's revenue growth slowed in the quarter, but it was still at a decent 11 per cent. The company's net profit growth was 11.7 per cent and EBITDA margin was 60 bps higher at 8.3 per cent compared to a year ago period.

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What is a mom and pop shop? ›

A mom-and-pop shop typically refers to a small, independent store or company. Taken literally, the "mom and pop" implies that it's a family-run or family-owned business, but it doesn't have to be. The phrase is often used to draw a distinction between independent stores and corporate-owned chains or franchises.

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What is considered mom and pop? ›

Mom-and-Pop is a popular informal phrase that refers to a small independent firm run by family members. These businesses are usually brick-and-mortar establishments. Family-owned retail outlets include grocery shops, bookshops, restaurants, cafes, bakeries, pharmacies, and automotive repair shops.