Representative image (IANS Image)
BENGALURU: The commercial sprint is no longer primarily limited to reaching new neighbourhoods. It has become a battle over the same secret codes. India’s top five operators added nearly 900 dark stores between April and July this year, with Blinkit, Flipkart Minutes and Amazon Now leading the expansion, according to estimates from equity research firm Bernstein.Eternal-owned Blinkit added 289 stores, taking its network to 2,511 stores. Walmart-owned Flipkart Minutes added 262 stores to reach 1,003 stores. Amazon has now added an estimated 250 stores, nearly doubling its network to 600-700 locations. Newer express commerce entrants Amazon and Flipkart together accounted for more than half of the additions. IPO-bound Zepto added 90 stores, taking it to 1,345, while Swiggy Instamart’s network remained largely unchanged at 1,187 stores.The five companies had between 6,650 and 6,750 dark stores in July, up from about 5,750 to 5,850 three months earlier. However, the number of unique pin codes provided increased by only 152 to 2,722. Therefore, most new stores were opened in areas where Express Trade services were already available.
The pressure is most acute in the metro. Major cities now have about 4,300 dark stores, while Bernstein estimates they can profitably support only about 3,600.
In April, all five companies were present in 26% of metro codes. By July, this share had risen to 44%, demonstrating concentrated competition among players. Amazon and Flipkart are not after quick commerce profits alone, said Satish Meena, founder of Datum Intelligence. They were also protecting their large e-commerce companies. “Habits are the real prize,” Mina said. “It’s about the top 50 to 60 million wallets, and the app that owns their daily habit.” “A pin can span 8-10 sq km, so denser networks are often needed to meet delivery timelines and improve order economics. However, new entrants may face a longer road to profitability,” said Angshuman Bhattacharya, partner and national leader, consumer products and retail, EY-Parthenon India.