- Caution Due to Subdued Consumer Demand: Kirana store owners in India are expressing a sense of caution, primarily due to subdued consumer demand and a decline in rural consumption. Persistent food inflation is a contributing factor.
- The survey reveals that 22% of kirana owners are feeling “extremely optimistic” about their business prospects for the festive season, while 37% expressed “some level of optimism.” Around 29% of kiranas are unsure about the season’s business prospects.
- Positive sentiment is most prominent among kirana owners in Madhya Pradesh (63%), followed by Bihar (60%), Rajasthan (59%), and Maharashtra (59%). Uttar Pradesh had the highest number of kirana owners expressing “pessimism regarding business prospects” at 14%.
- The sentiment analysis showed that 71% of kiranas witnessed a surge in demand over the past few weeks. Kirana owners in Madhya Pradesh, Bihar, Rajasthan, Uttar Pradesh, and Maharashtra confirmed increased demand for small-size SKUs, indicating that consumers are either trading down to smaller packages or experimenting with new variants of brands.
- The cautious optimism among kirana owners reflects the current dynamics of the retail sector in the country, where changing consumer behavior and economic factors are influencing business prospects.