Would Indian consumers move from kirana stores to organized retailers when shopping for groceries?

This article seeks to understand whether Indian consumers are likely to move from traditional kirana stores to large organized retailers while shopping for groceries.

Two hypotheses were proposed: H1: customer patronage differs for different grocery store attributes and H2: customer perceptions of grocery store attributes differ for kirana stores and organized retailers. The study was carried out across four Indian cities‐ two major and two smaller cities with around 100 respondents from each city. Stratified systematic sampling design with a sample size of 409 was used for the study. Multivariate statistical techniques were used to analyze the data collected with the help of a structured questionnaire.

Customer patronage to grocery stores was found to be positively related to location, helpful, trustworthy salespeople, home shopping, cleanliness, offers, quality and negatively related to travel convenience. Kiranas do well on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is true for organized retailers.

Kiranas have major disadvantages on all customer perception scores except location. These scores being less important determinants of patronage compared with location, in the short run kiranas may not be ousted out of customers’ favour. However, in the long run if they do not work on these other factors, they would face oblivion.

Kiranas need to upgrade their facilities to be able to compete with the organized retailers, who are expected to improve their location scores rapidly in the near future.

The paper predicts whether the foray of large organized grocery retailing would close down millions of kirana shops and result in loss of livelihood, suggesting measures to counter the onslaught.