Indians are spending 40% more than ever at Kirana stores during lockdown

• Consumer expenditure for essential goods at Kirana stores has increased by around 40% since the announcement of the nationwide lockdown.
• A report by SnapBizz shows that Indians were panic buying after the announcement of lockdown resulting in a major sales spike mid-March.
• The study analysed over 17 lakh consumer bills recorded in the network of Kirana stores spread across Delhi NCR, Mumbai, Pune, Ahmedabad, Bangalore, Chennai and Hyderabad.

People are spending more than ever on essential goods at Kirana stores during the coronavirus lockdown in India. Consumer expenditure has increased by nearly 40% since the lockdown was announced, according to a study by SnapBizz — a cloud-connected POS machine maker.

The report shows that Indians were panic buying once Prime Minister Narendra Modi announced that people would have to remain at home on March 24. The study noted a major spike in sales mid-March alongside a decline in the number of stores selling essential goods. Vendors reported issues like interference from police, lack of labour or problems in procuring supplies.


“The data shows that there was a steep increase in sales by 30% per consumer from mid-March onwards and further rose by another 30% by the end of March. But in the past few weeks, we have seen a slight drop in spends per consumer even though it is still high at 40%, more than usual,” said the report.

Panic buying may have pushed up the expenditure per person, especially when it comes to food sales, but retailers have their own interests. The report suggested that retailers are pushing more premium products due to availability and larger margins, adding to the inflated consumer spending.

The study analysed over 17 lakh consumer bills recorded in the SnapBizz network of Kirana stores spread across India’s urban city centres — including Delhi NCR, Mumbai, Pune, Ahmedabad, Bangalore, Chennai and Hyderabad.

“With most FMCG sales currently happening out of Kirana stores, these insights go a long way in helping companies understand what is happening with their brands and competition. This data will also help them address supply issues and reassure their distributors, retailers and customers on their continued presence in the market,” noted Prem Kumar, Founder and CEO of SnapBizz.

Demand for tea shot up by 3.5 times in mid-March

The report shows that the demand for tea shot up when the lockdown was imminent. In the Delhi-NCR region, the share of expenditure on tea in the shopping basket increased 3.5 times the usual level.

However, the demand rapidly fell soon after alongside a crunch in supply. The study suggests that the sudden flip in consumer spending on tea could be because consumer’s shored up their supply ahead of time, and later redirected their spending to other groceries.


Coffee category peaked in shopper baskets in South

The report reveals that while tea may have been the beverage of choice in pan-India, coffee sales peaked in the Southern states. Sales surged between mid-March till the end of the month followed by a sharp drop in April.

Unlike tea, the sudden tumble could simply be due to a fall in demand since supply is still present in most stores.


Noodles, Pasta demand, shot up

The noodles and pasta were also favorites for people shopping immediately after the lockdown. The category share of spending increased tremendously, according to the report, possibly due to kids being stuck at home with schools shut down and fewer fast food stalls open.