Modern Bazaar is cutting its store base to about 14 from as many as 28-30 a year ago as quick-commerce platforms move into premium groceries and force the Delhi-NCR retailer to rethink the economics of large-format stores.
Modern Bazaar cuts stores as quick commerce expands
The shift matters because it shows how fast delivery apps are reshaping India’s grocery market beyond mass-market staples and into imported and gourmet products, the very categories that helped physical chains justify higher rents and bigger footprints. For investors, it underlines the pressure on traditional supermarket operators to shrink, localize and lean harder on profitability rather than store count.
The company has already shut outlets in Defence Colony, Select CityWalk in Saket and New Friends Colony, while its Aerocity store has closed and will be replaced nearby. Founders said future openings will favor smaller Express stores, which carry lower rentals and are aimed at quicker neighborhood purchases.
Modern Bazaar’s revenue has also lost momentum. Operating revenue rose to ₹288 crore in FY23 from ₹232.7 crore in FY21, then was broadly flat in FY24 before falling 13.6% to ₹247.2 crore in FY25, while net profit dropped to ₹1.43 crore from ₹2.62 crore a year earlier, leaving a margin of about 0.6%.
The company says it will not try to beat quick-commerce players on delivery speed. Instead, it wants stores and online orders to work together, keeping customers inside its own ecosystem for larger grocery trips and loyalty-driven purchases.
The move comes amid internal strain. Industry executives say the chain has struggled with inventory controls, expired stock and weak professional management, while vendors have grown more cautious on working-capital terms after payment defaults and sector shutdowns.
Modern Bazaar is also in talks over a potential strategic transaction, though management says nothing is final. The broader backdrop remains favorable for premium food demand in India, but the winning model is increasingly looking smaller, more local and more digital.
| Entity | Gains | Losses |
|---|---|---|
| Quick-commerce platforms | ▲More premium grocery share | ▼Traditional supermarket traffic |
| Modern Bazaar Express stores | ▲Lower rent, faster turnover | ▼Large-format store economics |
| Suppliers with tighter terms | ▲Better payment discipline | ▼Working-capital exposure |
| Le Marche, Nature’s Basket, FoodStories | ▲Chance to gain displaced shoppers | ▼Heavier pressure to adapt |
