A report says that modernising Kirana stores goes a long way could boost retail consumption by more than 5 percent
Bengaluru: Kirana stores have played a great role in our country. They have also contributed a lot to the revenue generation and also job creation. Now, as per a report by Accenture and the Trust for Retailers and Retail Associates of India (TRRAIN), the transformation of just 10 per cent of the 13 million traditional grocery retailers in India, could boost retail consumption by more than 5 per cent and generate approximately 3.2 million new jobs in India.
It details how Kirana stores can be transformed through a seven-stage framework that focuses on store location and layout, technology, store funding and product placement, among other factors.
"The rapid changes in consumer behaviour and acceleration of online commerce, mandate that the Indian retail ecosystem transforms to meet emerging consumer needs," Piyush N. Singh, India Market Unit lead, said, as quoted by the report.
"As the lifeline of the Indian retail sector, a digital-led transformation of Kirana stores can result in significant economic gains, including a nearly 1 per cent employment growth in India. The transformation process needs to be expedited with comprehensive policy intervention, technology support, and, most importantly, collaboration between key ecosystem players," it added.
The report focuses on six key areas including location assessment, funding assessment, store layout, technology, product placement practises, and customer engagement.
"India is a nation of shopkeepers, and Kirana stores play a crucial role in the Indian retail sector, which in turn contributes nearly 11 per cent of the nation's gross domestic product and 8 per cent of its total workforce. Kirana transformation will not only help store owners improve profitability but also add value to the customers and overall ecosystem," said BS Nagesh, founder of TRRAIN.
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Last Updated Jan 28, 2021, 4:51 PM IST