Modernization of kirana stores: Which consumer aspects to focus

Abstract

Indian retail sector traditionally has been unorganized. Local „Kirana Stores? have been the backbone of Indian retail sector specially in case of grocery. In 2015 the traditional grocery stores contributed 98% of total grocery sells.1They have the highest reach in terms of number and coverage of cities and villages. Though the sector seems to be strong, they are likely to face tough competition from organized retailers. Domestic players like Future Group and Reliance?s spending is giving traditional players a tough competition specially in urban areas. And international retailers are also planning to enter the market after 51% FDI has been allowed. Walmart has already entered the market under the name, „Best Price?. Between 2014 and 2015, the organized retail has grown by 17% whereas traditional grocery sales have grown by 9.8%.2 This growth is fueled by changing customer demand of convenience. Attitude of urban customer are changing and their preference is moving towards organized retail. In this project, we intend to find out what are the factors that influence Indian consumers in their selection of a retail format. We also intend to find the behaviors that influence selection of a particular retail format.