Quick Commerce Sparks 52% Drop in Retail Sales of Essentials
The rise of quick commerce services has significantly impacted traditional retail businesses, with urban store owners reporting a 52% decline in the sales of essential goods. The shift in consumer behavior toward ultra-fast deliveries has led to reduced foot traffic in physical stores, affecting multiple product categories.
Decline in Essential Goods Sales
Retailers have observed a sharp drop in the sales of food, beverages, and confectionery items due to quick commerce platforms offering deliveries in 10 to 30 minutes. Personal care products have also suffered a 47% decline in sales, while household cleaning products have seen a 33% decrease. The convenience of instant home delivery has reshaped consumer habits, making it less necessary for customers to visit physical stores for everyday essentials.
Niche Markets Show Resilience
While essential goods sales have dropped, some niche markets, including childcare, beauty, and wellness, have remained stable. These product categories often involve planned purchases rather than impulse buys, making them less vulnerable to quick commerce disruptions. Additionally, consumers still prefer in-store experiences for high-involvement purchases such as premium beauty products and specialized wellness items.
Challenges in Smaller Cities
Quick commerce adoption has been slower in tier 2 and tier 3 cities, where delivery infrastructure is still evolving. High operational costs, logistical challenges, and consumer reliance on local retailers have limited the reach of instant delivery services in these areas. Traditional retail stores continue to thrive in smaller cities due to customer loyalty, immediate availability, and personalized service.
Retailers Adapting to Market Shifts
The rapid growth of quick commerce is expected to continue, with industry projections forecasting a 75% year-on-year increase in 2025. To compete with this trend, traditional retailers are exploring ways to integrate digital services and same-day delivery options into their business models. Many are also considering partnerships with quick commerce platforms to maintain their relevance in an evolving retail landscape.
As consumer expectations shift toward speed and convenience, brick-and-mortar retailers must innovate to stay competitive. The retail sector is witnessing a transformation, where businesses that adapt to changing dynamics will have the best chance of sustaining long-term success.
