Even as India’s e commerce market accelerates at a record pace, offline retail continues to hold its ground, especially in rural India. A recent consumer survey by Star Localmart, the country’s largest rural retail chain, highlights that physical stores remain the first choice for a majority of rural shoppers, underscoring the continued relevance of in store experiences.
India’s e commerce sector is projected to grow to $345 billion by 2030 and further expand to $550 billion by 2035, powered by deeper internet access, smartphone adoption and evolving consumer behaviour. However, this rapid digital growth has not diminished the role of brick and mortar retail. Industry estimates indicate mall vacancy rates fell to 8.1 percent in 2024, pointing to a renewed demand for physical retail spaces.
Star Localmart’s survey, conducted among 5,000 consumers across regions including Kolhapur, Pune, Mumbai, Karnataka and Delhi, found that 67 percent of respondents prefer shopping at local supermarkets. Only 35 percent said they rely entirely on online platforms for their daily needs. The findings suggest that trust and immediacy continue to outweigh the convenience of digital shopping for rural consumers.
According to the survey, 60 percent of shoppers said they are more confident about product quality when they can see items in person. Personalized assistance remains another decisive factor, with 61 percent valuing staff support and familiarity at neighbourhood stores. At the same time, challenges in online shopping persist, as 54 percent of respondents reported issues such as delayed deliveries, damaged products and difficult return processes.
Beyond transactions, local supermarkets play a broader role in rural life. Nearly 59 percent of respondents consider these stores important for supporting local employment and strengthening community ties.
Commenting on the findings, Shrenik Ghodawat, Managing Director of the Sanjay Ghodawat Group, said the survey reflects the enduring importance of human interaction and reliability in rural retail. He noted that while digital commerce is expanding, physical stores continue to serve as trusted community spaces.
The survey also revealed that shoppers want wider availability of local products, better in store services and flexible payment options. More than 58 percent said they would recommend supermarkets over online platforms, citing better value, satisfaction and a stronger sense of connection.
