Quick Commerce's Rise Squeezes India's Grab-and-Go Stores

India's convenience stores are facing significant pressure from the rapid growth of quick commerce, leading to operational challenges and market exits. The closure of all 31 remaining 7-Eleven outlets in India on September 30, 2026, following a franchise arrangement with Reliance Retail, highlights these difficulties. This exit mirrors Godfrey Phillips India's decision in April 2026 to close its 24Seven convenience store business.

These stores, which traditionally offer daily essentials and grab-and-go food with extended hours, are finding it hard to compete. Quick commerce platforms deliver everyday products within minutes, reducing the need for customers to visit physical stores. Organized chains also struggle to justify branded outlets, staff, and commercial rents against neighborhood kiranas and larger supermarkets.

To survive, some chains are exploring franchising models, such as The New Shop, which found profitability after switching to a franchise-first approach in 2022. The New Shop also aims to make its outlets lifestyle destinations offering services like courier pick-up and EV charging. AMPM is converting its stores to company-owned operations to maintain control.

Wellness Forever, a chemist chain, is emphasizing its pharmacy services, with 60-65% of revenue coming from pharmaceuticals. They have reduced their food assortment due to declining sales, focusing instead on skincare and supplements where expert advice can differentiate them. The company operates around 500 stores across five states.

Location and product assortment remain crucial for success. Metro stations, for example, are ideal for grab-and-go retail due to high foot traffic and immediate consumption needs. Despite current challenges, international players like Japan's Lawson plan to open directly managed stores in Mumbai in 2027, aiming for about 100 outlets by 2030, testing new operating models.