Kirana Store Business

What is a Kirana store?

In India, Kirana stores are small local shops referred to as corner stores, convenience stores, or C-stores. These small businesses sell various food items and daily necessities such as sanitary items, snacks, etc. Convenience stores are also located at petrol pumps and gas stations to meet the basic needs of consumers.

These establishments generally keep all the necessary consumer items. They do not have special offers or discounts that a supermarket or grocery store may provide, as they stock a limited amount of merchandise.

How to Start a Kirana Store?

Each business begins with an idea and then faces the task of bringing that idea to life. A business gradually builds its brand recognition and quality over time. Establishing a business presents unique hurdles, and Kirana stores are no exception. With people's spending power expanding in India, owning a Kirana store is a great idea.

By January 2021, India will have approximately 12 million Kirana shops. Setting up a Kirana store generally requires a low initial investment. Kirana stores also attract a large number of consumers. Hence, they are usually profitable. As a result, more and more people are trying to open Kinana stores. This blog covers the steps involved in opening a Kirana store and tips to help Kirana store owners to increase their profit margin.

Why open a Kirana store?

Kirana stores have been popular business outlets for decades. Other than local customers, several factors have kept Kirana stores popular. Some of these factors are:

  • They are easily accessible. Whenever you need any grocery item, you can buy it from a Kirana store.

  • You do not need to wait for the delivery of your products. You can quickly go to the community local store and purchase.

  • Kirana stores generally have all the daily essentials people require.

  • They can quickly analyse the needs and desires of consumers because they operate at a local level.

  • Currently, the country has around 12 million Kirana outlets. This shows that they are usually profitable business enterprises.

How to open a Kirana store?

Starting a Kirana store requires a small initial investment. Here are the basic steps that are involved in opening a Kirana store:

  1. Planning
  2. Planning is an essential part of carrying out any task. A solid plan can help you set up your store more efficiently. Determine the size of your Kirana store by conducting a demographic analysis of the area in which you are planning to open your store.

    Analyse the financial conditions of your potential customers and determine the types of items they use daily. Also, evaluate the number of products you will need to meet their daily requirements. After that, set the price of the commodities.

  3. Location
  4. You need to select an appropriate location for your store. People buy essential items from Kirana stores due to their easy accessibility. Select a residential area. Try to choose a locality that has no or few stores selling the commodities you plan to sell.

    Many people open their stores in rural areas as the competition is less than urban or semi-urban areas. Choose a location that is safe and easily accessible. The place should also have access to electricity, adequate water supply, and a proper transport facility.

  5. Identifying the preferences of the locals
  6. Recognise your potential customers' demands and preferences before launching a Kirana store. Your target market will be locals within a one or two-kilometre radius of the shop. You can conduct surveys to know the brands of grains, pulses, oils, toiletries, chocolates, and chips preferred in the locality. You can stock different types of snacks and chocolates if there are many children in the neighbourhood.

    Determine your consumers' purchasing habits and adjust your store's inventory accordingly. Consider inventory financing solutions to cover the costs of your purchases.

  7. Evaluation of the required capital
  8. Before investing any amount, one may wonder about the profitability of Kirana stores. Kirana stores have proven to be profitable business ventures in India. These stores can even challenge established retailers. Profit margins vary across different stores, according to their size and number of customers.

  9. Registration and licenses
  10. A trader needs to obtain a trade license before commencing any business. As a Kirana store owner, you need to obtain this license to ensure that your establishment complies with all applicable laws, regulations, and safety regulations. You need to obtain approval from the local municipal body.

    A Kirana store needs to have the following certificates:

    • FSSAI Registration Certificate

    • Entity Registration Certificate

    • GST Registration Certificate

  11. Choosing a Vendor
  12. Once you have identified many potential vendors, evaluate each of them based on various criteria. To provide your customers with the best products, you must purchase from a vendor who offers high-quality products, on-time delivery of products, and superior customer service. Ideally, it would be best if you had an inventory that can serve the needs of your consumers for two weeks.

  13. Promotions
  14. Promotions provide clients with a high level of awareness of products or services available in the market. Discounts and offers motivate people to try different products. Promotions can help you attract new consumers and fulfil the needs of existing ones. In some instances, you can offer free samples. You can promote your business through WhatsApp messages and emails.

  15. Marketing
  16. It is a risk-free strategy to increase sales. Marketing captures the attention of many potential customers. You have to tell your customers that you sell high-quality products. You can use various marketing tools available on the internet. Social networking sites serve as excellent marketing platforms. You can also distribute pamphlets in your locality.

  17. Unique Products
  18. You can store high-quality, unusual, and innovative products. Uniqueness and quality will attract customers to your store. These customers may recommend your products to their friends. In turn, they are spreading awareness about your store.

    People frequently underestimate the difficulty of opening and maintaining a Kirana store, especially at the initial stages. Once your business is established, you can focus on making it popular.

    Here are some other benefits of opening a Kirana store:

      Take charge of your career:

      You can recruit workers, and enjoy the profits. This can be beneficial for people who can develop strategies for managing different things and are confident in their ability to succeed.


      It is an incredible feeling for anyone to be able to support themselves financially. You can build the ambiance and culture you like and provide your consumers with the best products and services.

      You can make a difference in your community:

      You can generate employment and assist others. You can contribute to the welfare of your society and serve as a mentor to your staff.

How to increase sales?

You have successfully navigated the early stages of establishing a Kirana store. However, you still have a long way to go before establishing your presence. Do not be intimidated by this concept. Instead, gain confidence by implementing these strategies for increasing your sales:

You can keep your store open on weekends:Most stores operate between 9 a.m. and 8 p.m. You can open your store at 8 a.m. and close it at 10 p.m. You can gain two hours to sell your products. Additionally, you can keep your store open on Sundays and other holidays to generate additional revenue.

Observe your customers: You should pay a visit to another store in your neighbourhood.

    Explore the shop's structure and the products; identify popular brands.

    Evaluate your options and consider developing a new plan.

    Conduct extensive market research, analyse your competitors and understand their marketing strategies.

Take your Kirana store online:Nowadays, everyone is preoccupied with their own lives. Most people don't have enough time to spend with their families due to incredibly hectic schedules. Unable to spend quality time with their families on weekends since they are required to buy home supplies, they choose to shop online.

Currently, everything is available online, and your Kirana store should be no exception. As a result, you may choose to consider expanding online. Whether you operate a small Kirana store or a big chain, you must be online. The idea of an online Kirana store is not new. Numerous merchants have already begun selling their goods online.

Attractive discounts and offers: Offer your customers deals and gift cards to motivate them to become frequent visitors. Ensure that you are offering relevant discounts. You can also give some products for free with certain purchases. This will help you convert your potential consumers to loyal customers.

Concentrate on existing customers: Marketing does affect sales, but it cannot result in an overall rise in sales if you focus exclusively on new consumers and neglect to maximize existing clients. If you want to improve or grow sales, you should focus on existing consumers who repurchase your products or services -- learn how to retain all buyers in addition to recruiting new ones. By concentrating efforts on your most loyal consumers, you can significantly enhance sales.

Digital Payments:You should allow your customers to pay online. Nowadays, many people do not carry cash and prefer online payment. You can easily generate a UPI QR code for your shop. Collect the phone numbers of your customers to share important information. You can send a cash memo to your customer via email.

Are Kirana stores profitable?

Kirana stores demand regular inventory updates and the development of relationships with customers. The profitability of a business depends on different things, such as quality of products, relationship with customers, range of products available, etc.

Suppose you implement the right marketing strategies and have an efficient plan to sell the items with the highest profit margins. In that case, your Kirana store will thrive and generate revenue, just like any other business.

Final Words

Kirana stores that have lasted for decades have transformed themselves by incorporating new technologies. Kirana stores are easily accessible and meet the requirements of many people. Establishing a Kirana store is not difficult, regardless of your location.

You have to make a plan and establish your business. Engage with your customers to resolve issues and ensure that business operations are carried out smoothly. To be a successful business owner, you must be aware of your competitors and develop good relationships with your customers.

Kirana Store Business Plan related FAQ

How do Kirana store owners carry out business operations?

Most Kirana stores receive the products from local vendors, wholesalers, or distributors.The proprietor of a Kirana store sells the products and then pays the distributors.

Is an FSSAI registration certificate required for opening a Kirana store?

For opening a Kirana store, you must have an FSSAI registrationcertificate. The statute also addresses opening and closing hours, vacations, overtime policies, non-working days, etc.

Is a Kirana shop a profitable venture?

Grocery stores are lucrative enterprises. It is a business that can be started anywhere and offers substantial profit margins.

How do Kirana stores operate?

Kirana stores are unique in that the majority of transactions occur on a credit basis. Wholesalers and merchants purchase and sell items on credit, often for a week. Inventory is purchased on credit, and when sold, distributor payment is made while acquiring the following round of stock.

Frequently Asked Questions


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