Big Retailers Go Dark for Speed: Reliance, More, and Spencer’s Bet on Instant Delivery with Dark Stores

Reliance Retail, More, and Spencer’s are embracing the dark store model to compete head-on with quick commerce giants like Blinkit, Swiggy Instamart, and Zepto, aiming to deliver groceries and essentials to customers in under 30 minutes.

 

Dark stores are mini-warehouses, not open to walk-in customers, designed to serve a tight 2-3 km radius. This setup enables faster order picking and delivery, crucial for the instant gratification demanded by today’s urban shoppers.

 

Reliance Retail is leveraging its massive network of over 2,000 stores, covering 4,000 pin codes, but is now setting up standalone dark stores in high-volume urban pockets where traditional stores can’t guarantee sub-30-minute delivery. The company has seen a 2.4x jump in quick commerce orders in the last quarter and is pushing its JioMart platform with promises of no hidden charges and free, rapid delivery.

 

More Retail has already launched 45 dark stores, with 100 more planned, focusing on densely populated micro-markets and high-rise clusters. The company is shifting some hybrid stores (serving both walk-in and online customers) to pure dark stores as online demand surges, especially in cities like Kolkata, Hyderabad, Bengaluru, and Cochin.

 

Spencer’s Retail has piloted its first dark store in Kolkata to extend its quick commerce reach, aiming to double its current volume of 1.7 lakh monthly bills to 3 lakh by expanding into new cities such as Lucknow and Varanasi.

 

The move comes as traditional kiranas and large-format stores lose ground to e-commerce, particularly in metros. Recent NielsenIQ data shows e-commerce grocery sales up 40% year-on-year, while traditional and modern trade have declined.

 

Executives say dark stores are viable in high-demand, high-density areas, provided operational costs like rent remain manageable. The strategy allows retailers to enter new cities where they lack a physical presence, using dark stores as a launchpad for online-only operations.

 

Summary

 

India’s largest retail chains are rapidly shifting gears to meet the quick commerce challenge, setting up dark stores to ensure instant delivery and reclaim market share from nimble online rivals. This marks a significant transformation in how groceries reach urban consumers, with speed and convenience now the top priority.

 

Sources:

The Economic Times, Business Standard, IndiaRetailing