Redseer

India’s grocery retail landscape continues to be deeply anchored in kirana (local grocery) stores, despite the rapid growth of big-box formats and online delivery platforms. According to the Redseer report, these neighbourhood shops account for a vast majority of household grocery purchases and are expected to retain their dominance even as the market evolves. Kirana stores thrive because their business model aligns closely with how most Indian consumers shop: frequent visits with small average basket sizes that don’t suit the economics of large supermarkets or online players. Their local reach, personalised relationships, and ability to offer credit to regular customers further strengthen their role as the primary touchpoint for daily essentials. While organised retail and e-commerce are expanding, they serve different consumer needs and segments, leaving kiranas at the heart of mass grocery consumption for low-to-middle-income households. The report suggests that future success will likely come from coexistence and collaboration among formats, rather than outright displacement of traditional stores.