Growth curve for grocery stores to come from partnerships; customer loyalty diminishing: EY

NEW DELHI: Growth for neighbourhood grocery stores will come from cross-platform partnerships, with the stores swiftly adapting technology platforms, a new report by tax and advisory services firm EY said. “There is a renewed trust in hyperlocal communities with the kirana store emerging as a hub that helped maintain regular supplies of essentials during the lockdown.” the report said.
The report, ‘Sentiments of India – pulse of the country’, said neighbourhood grocery stores are increasingly moving towards adoption of technology with 40% respondents saying they want to partner with online delivery and supply platforms.

Sectors such as FMCGs, large retailers and financial services companies need to recognise that the kirana store is the new local touchpoint, there’s an increasing demand for specialty and do-it-yourself foods, and that hyper-localisationhas led to renewed trust in the local kirana store with a surge in new consumers, it said.

EY India partner - customer experience Shashank Shwet said: “Amidst the pandemic, kirana stores have emerged as local unsung heroes as they kept up with changing demands of the crisis and managing day-to-day supplies.”

The report highlighted that consumer loyalty to brands is in question, providing a window for new brands to replace old ones. It said at least 69% kiranas in non-metros were able to sell alternative brands.