Why GT Stores are the center of India's Retail Market

General Trade (GT) shops

General Trade (GT) shops, or commonly referred to as kirana shops, have remained the pillars of India's retailing industry for decades now. Even with the sudden growth of Modern Trade (MT) outlets and online retailing, GT shops remain in dominance of India's retail sector with their spread touching almost 80% of India's overall retail market. Their well-established presence, personalized service, and adaptability cannot be substituted by the ever-changing dynamics of the retail sector.

1. The Unique Reach of GT Stores

There is a GT store in all the nooks and corners of India, both in metropolitan and rural areas, with a wide reach even among the remotest villages. Boasting more than 12 million kirana outlets, their distribution network outflanks modern grocery stores and the internet. GT stores serve day-to-day purposes of the customer with the regular goods in metropolitan high-rise and rural homes alike.

✔ Hyper-local presence: Within walking distance for the vast majority

✔ No reliance on heavy infrastructure: Function in small locations with minimal operating expenses

✔ Presence in Tier 2, Tier 3, and rural markets: Penetration across the majority of India's population

The extensive coverage guarantees that GT stores are the first choice in retailing among millions of Indians.

2. Personalized Customer Experience & Trust

In contrast to Modern Trade outlets, where customers enjoy a self-service experience, GT outlets rely on personal relationships and trust. The owners of the stores usually know their customers by name, know their preferences, and provide personalized services.

  • Personalized service – Owners recommend products according to customers' requirements
  • Credit facilities – Most kirana outlets permit loyal customers to purchase on credit
  • Packaging and pricing flexibility – Products sold in small volumes to match local affordability

This sort of large-scale personalization enhances customer loyalty and makes GT stores a vital part of one's daily life.

3. Prompt Adaptability & Cost-Effectiveness

GT stores are highly adaptive and robust. Unlike large retail chains involving massive planning and logistics, GT stores can easily adjust inventory and operations based on local demand and trends.

  • Inventory based on demand: Owners adjust inventory based on customer choices
  • Low cost of operations: Low rent, no complicated supply chain, and fewer overheads
  • Accelerated use of digital payments: Most GT stores accept UPI, Paytm, and digital wallets today

During the pandemic period of COVID-19, GT stores surpassed Modern Trade with uninterrupted supply and rapid adjustments to safety measures, demonstrating their worth in India's retail landscape. 

4. The Future of GT: A Tech-Driven Revolution

While GT shops are highly conventional, they are also evolving with technology. Branded retailers and companies are digitizing the supply chain, allowing GT shops to automate processes and enhance efficiency.

  • B2B ordering apps – Mobile apps like JioMart, Udaan, and StoreKing facilitate effective restocking at GT shops
  • POS systems & data analytics – Small stores are using digital systems for better inventory management
  • Brand alliances – FMCG companies are forging stronger relationships with GT stores for supply chain improvements internally

Through these developments, GT stores are becoming competitive and future-proofed while retaining their strengths.

Conclusion: GT Stores Are Here to Stay

In spite of the emergence of Modern Trade and online commerce, General Trade stores are still the pillars of India's retail landscape. Their long-term relationships with shoppers, ubiquity, flexibility, and affordability are not replaceable.

India entry-bound brands need not overlook General Trade's pull. Aligning with kirana shops, hitching a ride on digital shift, and efficient last-mile reach via GT outlets will continue to be the cornerstones of success for sustained retailing.

Looking to drive your brand's visibility in GT? Love In Store is the expert in operating and optimizing General Trade merchandising for sales and development. Get in touch with us today!

Location: Chennai, Tamil Nadu, India

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