Kirana Reloaded: The Secret Sauce Behind Their Retail Resurgence

Image Source: Lokmat Times

India's humble kirana stores, under threat from the rapid growth of behemoth quick commerce and big-box stores, are fighting back strongly. Fitted with digital technology, hyperlocal strategies, and a dash of human touch, these neighborhood stores are catching up lost ground and reclaiming consumers in urban and rural India.

Key Highlights

Digital Transformation: Over 80% of kirana stores now are embracing digitalization—using POS machines, inventory management software, and online delivery portals to automate processes and engage with tech-savvy customers.

Partnerships & Platforms: Many kiranas have partnered with platforms like ONDC, Jio Mart, Amazon, and Flipkart, becoming part of larger e-commerce platforms but still local.

Personalized Service: Kirana owners are capitalizing on deep community ties—offering credit, personalized suggestions, and even birthday wishes to repeat customers, something large chains are unable to offer.

Smart Assortment: There is a trend towards stocking small value SKUs and local bestsellers, which allows kiranas to price and remain competitive, especially in non-urban towns.

Quick Delivery & Loyalty: By providing hyperlocal delivery and loyalty schemes, kiranas are challenging the quick commerce apps' speed and convenience, but with a personal touch.

Resilience in Tier 2/3 Cities & Rural India: Although the metros were affected the most by the speed of business, kiranas remain the backbone of FMCG sales in tier 2/3 cities and villages, where they remain the first choice of daily essentials.

FMCG Giants' Support: HUL, ITC, and Parle are introducing kirana-exclusive SKUs and kirana-specific pricing to remain competitive in front of retail chains and q-commerce platforms.

The kirana shop's secret is its adaptability—merging tradition with technology and indigenous trust with contemporary convenience.

Source: Economic Times, Financial Express, Fortune India, DFU Publications, CXOToday, LinkedIn Pulse, MediaBrief, The Kirana Comeback Report (June–July 2025).