Stocks are running out, online grocery stores tell FMCG companies

Online grocery stores have told leading fast-moving consumer goods (FMCG) companies that over the coming two months, they might run out of stock, given the liquidation of inventory and heavy promotions planned for June, before the country sees the implementation of the goods and services tax (GST) on July 1.

"The concern for us is there may be a shortfall in inventory just after the GST rollout," Vipul Parekh, cofounder of BigBasket, told ET. "We have asked FMCG companies to ensure that stocks are not impacted in the three months just after the GST implementation."

Even though online grocery shopping is a small industry when compared to the mammoth retail industry, it is growing at a fast pace, more so since e-commerce giants Amazon and Flipkart have made their debuts in the space.

As per a recent Google-AT Kearney report on digital retail, FMCG and personal care, there will be a fast growth in these segments online, with the segments growing threefold by 2020.

On their part, the companies have tried to convince the sellers that they are working toward minimising the possible shortfall in stocks post GST.

"We will have enough stocks to fill up the pipeline. We are ensuring availability at every depot for quick replenishment of stocks," said Britannia's MD Varun Berry.

(Image source The Hac)