The Hindu Business Line : Carrybag full of ideas

His little store used to be the only one in the area," says Varun, a banker, about his local grocer across the street. "We used to go to him because the other stores were too far away. We'd tell him that things would get better whenever his business was down. We grew up and his shop grew bigger."

Today, the same grocer is threatened by the entry of large organised retailers with more financial resources, birth of new formats that woo his younger customers, and the likely entry of foreign players that have made fortunes from running small, local players out of business.

Along with the competitive scenario, the dynamics of his business are also changing. At a time when the Indian consumer is finally getting to be King, the kirana or convenience store that was once frequented for atta and milk is today expected to stock everything from fruit juices and wheat bread to hair colours and contact lens solution.

Shopping habits too are changing, as the number of dual income households steadily increases. Mall hopping may be a major outing, but grocery shopping is seen as a routine activity to get over with quickly.

Supermarket savvy

People like Varun now prefer modern, air-conditioned stores such as Spencer's Daily or Nilgiris for their regular grocery shopping. At a kirana store, Varun says, he has to ask for what he wants over the counter and wait to be served. Not so in these modern stores, thanks to easy self-service. Being able to browse through different products that are well displayed, also gives him a better idea of what is available and at what price.

Young, working mothers like Sonia place a premium on time. "I do my shopping during weekends and buy for the entire week." No impulsive buys for her as she plans her purchases. Buying in bulk, she also ends up paying through her credit card, which is a convenience she will not get in a smaller store.

Many shoppers also believe that the large stores conform to norms of grading, weights, and labels and have an honest billing system. "I do not have to worry about the weights they use, or how the accounts are kept," says Sonia.

The variety stocked at these supermarkets, of course, is their biggest attraction. Varun says he can get what he wants, the way he wants it. "I get juice in both 200 ml and 500 ml packs here. At the small shops, only one variant is often available. The store owner also tends to push the product he wants."

Distance does it

He does, however, admit that he may well have stuck to his neighbourhood grocer hadSpencer's Daily not been just as close to his home. Fact is, even as the Spencer's Dailys, TruMarts or Trinethras rush to be the first in your neighbourhood to offer the best of everything, it is the small grocer who really has the first mover advantage. He has been around longer and present in markets where organised retailers are yet to make a dent, or worse, have not even discovered.

Most customers, therefore, remain largely indifferent to the kind of store they shop in, be it large or small. Their preference for one over the other is, in almost all cases, dictated by proximity. This is especially true considering most modern stores are yet to provide adequate parking space.

Mani, who reviews books for a living, finds the new, flashy stores cold and impersonal. "They are rarely open after 9.30 in the night. If you are there around closing time, they slowly start switching off the lights in your aisle," a subtle way of telling you to leave.

Old favourites

Besides, old shopping habits do die hard, and the local grocer has gained customers that are likely to remain loyal to him, even as they explore new formats. Many households have grown used to being pampered by the local grocer. And in families where the mother-in-law rules the kitchen, he remains the preferred choice. Most transactions are easily done over the phone. Says Raji, a homemaker who shops both in upmarket stores and at the general store down the road, "I prefer Avenue Stores (neighbourhood grocer) any day. If I need even a single item, the owner sends one of his boys to deliver it at home, even if it's late in the night." And any item wrongly sent is promptly replaced. She says that while she shops at Spencer's Daily and Nilgiris, she buys all household cleaning items from Avenue Stores. " I need to prove that I am a loyal customer. Only then will he continue to provide good service," she says, with a touch of irony in her tone.

And yes, the local grocer also is no longer content remaining a small player. He is upgrading his services. Avantika, a financial analyst, says that the neighbourhood shop near her suburban Chennai home remains her favourite shopping haunt. "The shopkeeper has now arranged products in shelves and labelled them. Before, he used to give me groceries in a newspaper. Now he packages them like an upmarket store." And even some cooperative stores have begun to air-condition their outlets, in an attempt to create a better ambience.

Combine their unbeatable service, the local flavour they bring to their business and their down-to-earth but savvy operations and you realise why it's not time to say goodbye to the local grocers just yet.