Grocery Shopping

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By Rajkamal Rao 

Go back to Comparing Life US v. India

Big box retailers (Walmart, Kroger) and discount chains (Sams Club, Costco) continue to dominate the US grocery industry.  The ability for consumers to shop for just about everything they need - all under one roof - and stock up on their favorite items has all but rendered the local mom and pop store extinct.

India’s story is different.  The majority of Indians shop for groceries at their local “Provision” store which is almost always family run.  India’s distribution network is vast but inefficient because goods go through multiple layers of middlemen before the product shows up at your neighborhood store.  Most items are sold at or slightly less than the Manufacturers Retail Price (MRP) which is itself inflated to account for the lengthiest link in the supply chain.

Provision Store

In general, service at these provision stores is excellent because the shopkeeper knows you.  He will even take orders over the phone and for a small fee, have them delivered to your door.  Credit is common and as long as you settle your account once a month, all parties are happy.  Shown here is such a provision store.

Greengrocer

Indians often buy produce fresh on the street because the concept of refrigerating produce from the farm and keeping it refrigerated until it arrives on the kitchen table is alien to most Indians.  The quality is generally excellent because shelf life of produce is no more than a day or two and customers refuse to buy items that are not fresh.  It is common to see shop keepers severely discounting vegetables and fruits that are soon to go bad, and throw them all to the garbage pile when they do go bad.  Some analysts estimate that over 50% of produce and 35% of grain spoils because of inadequate technology and infrastructure. 

This story has been changing in the last few years.  The Indian retail majors - Tata, Food World, Reliance, Metro - now operate large stores that feature wide-aisles, a wide variety of goods (from appliances to vegetables), bar coded products and dedicated free parking in basement garages.  More and more Indians are now shopping at these outlets because these are strategically located in malls, a favorite weekend destination for the upwardly mobile Indian family. 

Food Baazar

Notice that shopping aisles, carts and cash registers are smaller than a Target or Kroger, but may compare better with the ambience of a Family Dollar or Dollar General store.

When the Indian government decided to open up the retail sector to Foreign Direct Investment (FDI) in August 2012 against much opposition, the idea was to let foreign multi-brand retailers (such as Walmart) into the country.  One of the many conditions required that these foreign companies build infrastructure to help extend the life of perishables in the farm-to-table lifecycle.  Many other conditions exist, but overall, the retail industry is poised for significant change in the coming years.


Many grocery stores deliver your order home just on the strength of a phone order.  You will have to generally call before 7 PM.  And a minimum order limit (usually very low, INR 300) applies.  And once ordered, it can't be canceled.

Delivery is almost always free. You call the store clerk with your order list and he patiently writes it down.  When the order is ready to be billed, he calls you back with any questions. "Sir, did you really mean Britannia Marie Regular or Britannia Marie Nutri Choice Digestive/Light ?"

He tells you the total amount due. "INR 1,236, you said?  I only have 500 rupee notes", you reply.

 "No problem at all, sir, I'll send change for the balance", comes back his polite response.

A short while later, your order is at your door.  You have the right to verify each item before you pay.



Home Delivery is not a good idea for perishables such as vegetables and fruits; or lentils and rice because some packets may have inferior product.  It's best to shop for these at a store when those sharp pairs of eyes come in handy.

In summary, the returning Indian family therefore has nothing to fear and can most closely duplicate the US grocery shopping experience in India if it so wishes to.