Kerala's Neighbourhood Shops Face Existential Crisis as Quick-Commerce Expands

In Thiruvananthapuram, Kerala, 62-year-old Mohanan sits in his shop near the Thamalam level crossing, watching residents pass by without hope of a sale. The shelves, once stocked with essentials, now hold items haphazardly arranged. After 50 years of running the business his father started, he says, 'I used to have daily sales of ₹3,000-₹5,000. Now I hardly manage ₹300. I stocked a sack of rice a month ago and haven't sold even half a kilogram. Why would anyone come when they can get home delivery?' Mohanan is not alone. Across Kerala, quick-commerce platforms like Swiggy Instamart, Blinkit, Zepto, Big Basket, and JioMart, along with large retail chains such as Reliance, have expanded rapidly over the past two years. These platforms offer doorstep delivery and competitive prices, benefiting consumers and creating jobs for delivery partners. However, small traders report a sharp decline in business.

K. Unnikrishnan, 59, whose family has run Kumar Store in Neyyattinkara for 70 years, says his monthly first-day sales dropped from ₹50,000 to ₹10,000 and average sales from ₹25,000 to ₹5,000. 'We had five sales staff and a cashier. Now it's just me and one other. Quick-commerce and big supermarkets give deep discounts we can't match. I see no hope,' he adds.

According to Babu Kottayil, vice-president of the Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES), 20-30% of trade businesses close each year in the state, while only 10-15% new ones open, resulting in a net decline of 10-15%. Many new businesses are restaurants or cafes. The traders' body has raised concerns about predatory pricing by quick-commerce and large retail chains, but the trend continues as consumers prioritize convenience and price. The expansion, initially experimental in cities like Kochi five years ago, has now penetrated smaller urban centres and rural areas.

For Mohanan, the future is uncertain: 'I just sit here out of habit. Soon I'll have to shut shop and find work as a security guard. That will pay more.' Unnikrishnan echoes the sentiment, saying he will not take loans to improve the business, given the downturn. The plight of these small shopkeepers reflects a broader shift in India's retail landscape, where digital platforms and large retailers reshape traditional commerce.