India’s e-commerce sector is experiencing unprecedented momentum, with a study estimating that the e-commerce market will soar to a remarkable $345 billion by 2030, ultimately reaching $550 billion by 2035. This robust expansion is driven by rapid digitization, increased smartphone penetration, and shifting shopping habits among Indian consumers. Yet, even as online retail accelerates, the estimates suggest a significant drop in mall vacancy rates to 8.1% in 2024, underscoring a strong resurgence in demand for brick-and-mortar retail. This trend underscores the enduring importance of physical stores in the retail landscape, as they continue to provide unique experiences and foster community connections that online platforms have yet to replicate.
A survey by India’s largest rural retail chain, Star Localmart, shows that offline shopping remains the preferred choice for a majority of rural consumers. The survey, conducted among 5,000 consumers from five cities, including Kolhapur, Mumbai, Pune, Karnataka, and Delhi, found that 67% of respondents choose to shop at their local retail supermarkets, with just 35% relying exclusively on online platforms.
This compelling insight comes at a time when digital commerce is often hailed as the future of retail. However, Star Localmart’s findings reveal that rural shoppers still value the tangible, trustworthy experience that only supermarkets can provide.
Most notably, 60% of shoppers say they trust the quality of goods more after seeing them in person and appreciate immediate access to products, which is a significant gap in current e-commerce offerings. Personalized service and staff assistance also play a crucial role, with 61% of respondents citing these factors as reasons for favoring supermarkets over online platforms. Concerns with online shopping remain prevalent: 54% have faced problems such as delivery delays, product damage, and complicated returns, which reinforce scepticism about digital purchases.
The local supermarket’s role extends beyond shopping, too; 59% believe these stores support local jobs, strengthen social bonds, and ensure a reliable and fresh supply benefits that are vital to rural communities. Persistent gaps in the e-commerce experience include uncertainty about product quality, delivery issues, lack of personalized assistance, and technical barriers such as limited internet access. While online shopping offers advantages like home delivery and a wider product range, these are often outweighed by rural consumers’ desire for trust, immediacy, and community connection.
Star Localmart’s survey demonstrates that supermarkets are more than just retail hubs; they are anchors of rural economic and social life.
Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group, said, “This survey proves that the human touch, trust, and reliability of retail supermarkets are irreplaceable in rural India. While e-commerce is expanding rapidly, it still cannot bridge the gaps that matter most to our communities. Our stores are not just retail outlets; they are gathering places where relationships are built and local livelihoods are supported. As we move forward, our commitment is to blend innovation with tradition, ensuring that rural shoppers enjoy both the convenience of modern retail and the warmth of personal service.”
When rural consumers were asked how supermarkets could better serve their needs, the top suggestions included a greater selection of local products, enhanced in-store services, and more flexible payment options. These insights reflect a clear demand for continued innovation and responsiveness in the offline retail sector.
Additionally, more than 58% of respondents said they would actively recommend shopping at retail supermarkets to their friends and family over choosing online platforms. Their reasons: better value for money, higher satisfaction, and a stronger sense of social connection. As India’s retail landscape transforms, Star Localmart reaffirms its commitment to being a trusted partner in rural communities, dedicated to ensuring consumers have access to both the convenience of modern retail and the enduring advantages of the in-store experience.
