Neighbourhood Mom and Pop stores, which are also known Kirana shops in Kurnool district are facing problems to shift themselves to an e-commerce based transactions in view of the currency shortage.
Nandyal, Adoni, and Kurnool are the big centers where all the trading community sells food articles to toiletries, salt and sugar.
Kurnool: Neighbourhood Mom and Pop stores, which are also known Kirana shops in Kurnool district are facing problems to shift themselves to an e-commerce based transactions in view of the currency shortage. Kirana shops in the district are largely run by the Vysyas (trading community) who for generations developed a credible clientele in the respective localities. Nandyal, Adoni, and Kurnool are the big centers where the trading community sells food articles to the toiletries, salt and sugar.
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Kirana shops which normally have cash transactions have been shifting to the electronic trading by installing swipe machines and allowing the facilities for charging through Paytm and digital wallets. Saraswathi Kirana stores in Venkatramana colony in Kurnool, which supplies groceries to the neighbourhood, is finding it difficult to operate the machines. “We are used to paper-based calculations for billing and we deliver items against the cash payments. Now, doing paperwork and accepting money through a digital mode is becoming very difficult,” said Nichenametla Subbarayulu Setty, a Kirana shop owner in Kurnool.
“Aged people who are managing the stores are finding it really hard to shift to a new technology,” he said. Kumar, another shop owner said that they have placed orders for installing Paytm. “Paytm had recently launched an App-POS feature to allow the small merchants to accept all debit & credit cards. Once this comes, we will serve customers better,” he said. Ever since demonetization has hit currency crunch, a Kirana shops are switching to swipe machines. But most of the shops are accepting the cards only for transactions above Rs 100.
According to a survey conducted by Market Research Company Nielsen, the demonetization initiative on FMCG sales with a credit crunch for kerana wallahs who buy from them, as cash & carry, saw a 1 percent decline in sales during the week ended November 13, compared to a 14 percent growth during the year to November 6.
At a dealer or store level, impulse categories such as the biscuits and salty snacks declined by 40 percent and 35 percent respectively, while sales of some personal care categories like toilet soaps, shampoos and detergents were down by 22-28 percent, said Nielsen. Some companies have started cutting production because of the fall in demand, and many are now waiting intently for the situation to return to normal.