Flipkart plans to expand grocery business to additional cities in lieu of competition
Flipkart, the Walmart owned online retail giant is expanding its grocery business to 70 cities, expanding from existing 50 by adding 20 more locations in its serviceable list.
The move is crucial at the time when its market competitor Big Basket is being acquired by the Tata Group.
“Grocery continues to be one of the fastest-growing categories, with the increase in demand for quality food and household supplies from users. In line with this, we have invested in scaling up our grocery operations across the country, strengthening ecosystem partnerships, thus ensuring a seamless grocery shopping experience through an expansive product selection, robust supply chain and smooth in-app experience for consumers,” said Manish Kumar, senior vice president – Grocery, General Merchandise and Furniture, Flipkart.
“We have witnessed increased demand for groceries from tier 2 cities in the past year, fueled by customers increasing preference for contactless shopping, from the comforts of their home. It is a trend that we think will continue and will set the course of e-grocery space in India,” he continued.
At present Flipkart offers over 7000 products across 200 categories, which include snacks, beverages and household supplies. Apart from metro cities, Flipkart also provides services to cities like Warangal, Mysore, Allahabad, and Kanpur.
The next projected big online shopping sector is grocery. Flipkart’s grocery operations are also projected to give a boost to local food production by connecting farmers to lakhs of consumers through the tech marketplace.
Flipkart shares that past year alone has witnessed growth in grocery business three-fold. Flipkart has partnered with retailers and also FPOs across India to enable farmers with digital access. Redseer Consulting report that was recently published showcases that over 50% (approximately $570 billion) grocery retail space in India is made through the e-grocery platforms.