Quick commerce takes over cities: 42% in metros have ditched traditional shopping, says PwC

Quick commerce is redefining the urban retail landscape in metros and Tier 1 cities, where speed is the new currency. In these areas, 42% of consumers prioritise instant deliveries for urgent needs, while 65% rely on quick commerce for essentials like packaged foods—leading to a 28% reduction in foot traffic at physical stores, according to the latest PwC report.

The report highlighted that while 34% of respondents remain loyal to in-store shopping, 21% prefer an exclusively online experience.

Titled The Retail Reinvention Paradigm: How Brands Could Up Their Game, the report revealed that 34% of retailers believe online shopping has negatively impacted their business. “To stay competitive, 64% are self-funding marketing efforts, underscoring the need for a strategic roadmap.”

The insights in this report are based on a survey conducted in collaboration with Hansa Research, covering over 1,000 retailers and 800 consumers across metro, Tier 1, Tier 2, and Tier 3 cities in India.

Quick commerce in India expanded at a staggering 73% annual growth rate in FY 2023-24. Meanwhile, 77% of Indian shoppers are gravitating towards omnichannel brands, embracing a blend of digital and in-store purchases, the report noted.

India’s retail market is projected to reach $1,892 billion by FY30, growing at a compound annual growth rate (CAGR) of 10.3%. Leading this charge is e-commerce, expected to grow at a CAGR of 22.5%, reaching $220 billion by FY30, it added.

The report also highlighted that 21% of retailers are exploring dark stores to boost efficiency and trim costs, while 10% have already implemented them. Consumers in Tier 2 and Tier 3 cities are increasingly prioritising flexible return policies, efficient after-sales services, and better payment options.

Retailers are embracing the digital shift, with 60% considering technology a game-changer for staying ahead. However, a digital divide persists, as 53% of retailers have yet to adopt tech-driven solutions. Meanwhile, nearly 45% prefer a hybrid model that combines online and offline experiences. “Our research shows that consumers want the best of both worlds—seamless digital convenience and the in-store experience.”

Online shopping dominates personal product categories like apparel and beauty, with over 50% of consumers favouring the digital aisle. However, for family-related purchases such as fresh produce and home furnishings, 36% still prefer in-store shopping.

Despite the rapid expansion of quick commerce, brick-and-mortar retail remains a stronghold in Tier 2 and Tier 3 cities, driven by independent retailers with a loyal customer base.

“Customers don’t want to choose between online and offline. They want both. Some days, they prefer shopping from the comfort of their homes, while on other days, they enjoy walking into a store and experiencing the products firsthand. We have to be ready for both scenarios,” an apparel store owner remarked.