Last updated : December 10, 2025 3:56 pm
Digital platforms with deep discounts and rapid deliveries have reshaped consumer behaviour, leaving kirana stores struggling. As this disruption accelerates, FRAI urges stronger government action to safeguard small retailers and restore balance in the market.
Federation of Retailer Association of India (FRAI), a representative body of about 80 lakh micro, small and medium retailers, nationwide, marked the 9th National Retailers Day in New Delhi and urged the government to strengthen support for small retailers amid mounting pressure from e-commerce and quick-commerce players.
The rapid rise of e-commerce and quick-commerce platforms in India is causing a steep decline in income and livelihoods for thousands of local grocery and kirana shop owners. According to market studies, at least two lakh Kirana stores had closed last year as consumers had shifted to quick commerce platforms such as Blinkit and Zepto. Further, a December 2024 study by JP Morgan on offline grocery stores in Mumbai showed that 60 per cent of them have seen a decline in their sales volume due to the mushrooming of dark stores of quick commerce platforms.
According to FRAI, over the past few years, digital platforms have reshaped consumer behaviour through deep discounts, rapid delivery promises, and aggressive marketing campaigns, leaving small retailers struggling to compete on an uneven playing field.
Compounding the problem is the manner in which large, often foreign-funded e-commerce and quick-commerce companies engage with the small-retailer ecosystem. Instead of empowering shop owners to grow their independent businesses, many of these platforms are turning them into delivery personnel or last-mile service agents. This shift discourages and diminishes entrepreneurship, converting once-independent proprietors into gig-economy workers with uncertain incomes and limited protections. Given this grim trajectory, there is an urgent need for a fair, well-designed support model that protects the interests of small retailers and local entrepreneurs.
The retailers in the event urged the government to equip local Kirana stores with a dedicated technology platform that would enable them to compete fairly with quick-commerce companies and operate on equal footing. They recognised the growing consumer demand for faster delivery, greater convenience, and competitive pricing, and affirmed their readiness to embrace digital tools, enhance efficiency, and elevate customer service. However, they emphasised that without government intervention, small retailers will continue to struggle against the vast financial and technological advantages of large e-commerce platforms.
As a potential solution, the retailers proposed creating a Bharat Taxi like digital system where customer orders are routed to nearby Kirana shops, with the order going to the first store that accepts it. Such a platform, they suggested, could also include a customer-rating feature for participating Kirana stores, motivating them to maintain high service standards and fostering healthy competition within the local retail ecosystem.
“Small retailers and kirana shopkeepers are facing an unprecedented challenge as e-commerce and quick-commerce platforms reshape the market,” said Abhay Raj Mishra, Member & National Coordinator, Indian Sellers Collective and Honorary Spokesperson of FRAI. “These enterprises, built over generations, are now struggling to survive against players with deep pockets and aggressive strategies. We believe the government must urgently step in to create a fair competitive environment and empower local retailers with the right technology. Platforms like ONDC show immense promise in restoring balance by giving small businesses greater visibility, digital access, and a level playing field. India’s retail future must protect entrepreneurship, livelihoods, and the neighbourhood stores that serve as the backbone of our communities.”
At the event, FRAI highlighted that a powerful step in empowering small retailers is through the government-backed ONDC (Open Network for Digital Commerce), an initiative designed precisely to empower small retailers and democratise India’s digital commerce landscape. ONDC moves away from platform-centric monopolies by creating an open, interoperable network where any buyer and any seller can transact using any ONDC-compatible application. For kirana stores, this means greater visibility, access to a wider customer base, lower operating costs, and the freedom to choose different apps to list and sell their products.
FRAI believes ONDC can significantly strengthen India’s retail ecosystem, provided it sharpens its enablement framework for small merchants. This includes streamlining seller onboarding with practical training; standardising service levels across buyer apps for consistent delivery and pricing transparency; expanding logistics partnerships to improve fulfilment; and introducing stronger incentives such as lower commissions, promotional support, and visibility boosts. FRAI also emphasises the need for a unified trust-and-rating system backed by stricter compliance to enhance credibility and drive wider adoption.