Quick commerce hits urban retail, but tier 2 and 3 cities stay resilient: PwC
The rapid growth of quick commerce is disrupting urban retail, with 52 percent of physical store retailers reporting a decline in food, beverage, and confectionery sales, according to a PwC report. Personal care (47 percent) and household cleaning products (33 percent) are also seeing reduced sales.
Quick commerce, which delivers orders in 10 to 30 minutes, is reshaping consumer habits, particularly for frequently purchased goods. However, niche segments like childcare, beauty, and wellness remain largely unaffected, as customers prefer in-store shopping for these categories.
In contrast, retailers in tier 2 and 3 cities are less impacted by q-commerce’s expansion. High delivery costs and scattered demand make rapid delivery models less viable in these regions, allowing brick-and-mortar stores to thrive.
India’s retail market is projected to reach $1,892 billion by 2029-30, growing at 10.3 per cent CAGR, with e-commerce rising at 22.5 percent CAGR to $220 billion. Nearly 50 per cent of Indian consumers now favor a hybrid shopping model, blending online and offline purchases.
