In the bustling city of Hyderabad, a quiet but significant retail battle is unfolding. Despite the aggressive expansion and deep discounts offered by quick commerce (Q-commerce) platforms, traditional grocery retailers, particularly those selling fresh fruits and vegetables, are not just surviving but thriving.
The Sensory Edge of Traditional Shopping
Industry experts point to a fundamental consumer preference that algorithms cannot replicate. Akash Mitra, Chief Business Officer of MandiGate, highlighted this in a recent LinkedIn post. He explained that while packaged goods rely on brand trust and expiry dates, purchases in the fruits and vegetables category remain intensely sensory. Consumers in Hyderabad strongly prefer to see, touch, and smell their produce before buying. This hands-on experience, offered by the neighbourhood vendor, builds a level of trust that speedy delivery alone cannot match.
This sentiment is echoed by established retail chains. Sivarao Cherukuri, Managing Director of Pure O Natural Retail Pvt Ltd, confirmed that their business, where fresh produce accounts for 80% of sales, continues to grow. They serve a loyal, quality-conscious customer base across Hyderabad, Vijayawada, and Visakhapatnam who prioritize freshness and the ability to physically select their items. Their outlets see an impressive 500 to 700 average daily walk-ins.
Growth and Expansion Defy Digital Disruption
The resilience of the traditional model is reflected in clear expansion plans. The Rs 300 crore Pure O Natural chain is profitable and has ambitious growth targets. They plan to expand from their current 52 stores to 100 by 2027. Specifically in Hyderabad, they currently operate 47 stores and plan to open 20 more in 2026. While acknowledging the convenience trend, the company is adapting by offering 30-minute home deliveries via a mobile app, aiming to serve convenience-seeking consumers without abandoning the physical store model.
Cherukuri revealed that the impact of Q-commerce on their business has been minimal, estimated at only 1-2%, while their overall business continues to grow at a steady 10% year-on-year. Even the Covid-19 lockdowns, which provided a massive boost to online delivery, only caused a temporary disruption from which they have fully recovered.
The Inherent Challenges of Q-Commerce in Perishables
Academic analysis supports the practical experiences of retailers. Prof. Manish Gangwar, Associate Professor of Marketing at the Indian School of Business (ISB), outlined the structural hurdles for Q-commerce in the fresh category. He noted that achieving delivery within 10-15 minutes is not only costly but also hard to sustain for perishable goods. Inventory management poses a major challenge, with a high risk of wastage if items are not sold quickly. Furthermore, concerns about quality and freshness persist, driving consumers to prefer in-person selection.
However, the threat from Q-commerce is not being dismissed entirely. An official from the Retailers Association of India (RAI) cautioned that the rapid growth of quick commerce has already led to the closure of many neighbourhood kirana stores, and this trend is expected to accelerate. The battle for market share is real and ongoing.
Ultimately, the story in Hyderabad's grocery lanes is one of coexistence and adaptation. While quick commerce reshapes expectations around speed and convenience, the traditional fruit and vegetable retailer, with its emphasis on sensory trust, personal interaction, and proven freshness, continues to hold a formidable and deeply rooted ground.
