Modern Bazaar Shuts Half its Stores as Quick Commerce Gains Ground
Modern Bazaar halves store network as quick-commerce platforms transform India’s retail space. With a revenue of roughly INR 250 crore, the Delhi-NCR-based luxury grocery chain has down-sized its branches to around 14 and is now concentrating on the smaller Express stores.
As a result of the fast growth of online shopping, conventional supermarkets are reevaluating their retail economics. Following a similar business model, Modern Bazaar, one of the oldest premium food stores in the Delhi-National Capital Region, is reorganising its outlet network.
The business, which has a turnover of INR 250 crore, has cut the number of locations it operates from 28 to 30 to about 14 in the last year. A number of the company's locations have closed, including the Aerocity mall, New Friends Colony, the exclusive Defence Colony, and Saket's Select CityWalk. In addition, there are intentions to replace the latter with a new outlet at a different location nearby.
Modern Bazaar Focussing on New Business Strategies
The Express shop format is the main focus of the business, as it has been successful, according to Vishwant Kumar, founder of the company. Eventually, Modern Bazaar intends to expand beyond the Delhi-NCR region and create additional stores like these. The Express stores are characterised by a neighbourhood shop concept that aims to provide fast service and quick purchases. Compared to larger formats, they have cheaper rentals and target various consumer demographics.
In other areas, the business will keep running its large-format stores. Success in the market and customer demand will, however, dictate its future actions. In recent years, Modern Bazaar's financial performance has been somewhat unpredictable. The company's operating revenue increased from INR 232.7 crore in FY21 to INR 288 crore in FY23, stayed relatively unchanged in FY24, and then fell 13.6% to INR 247.2 crore in FY25, according to financial statistics released by several media houses. After reaching INR 2.62 crore in FY24, the company's net profit dropped to INR 1.43 crore in FY25, a decrease of around 0.6%. Among the retailer's direct competitors are FoodStories, Le Marche, and Nature's Basket.
Modern Bazaar Going Through Challenging Phase
The operational problems at Modern Bazaar are mostly due to the fact that they were poorly managed. Media coverage has drawn attention to discrepancies between reported and actual inventory levels, products that have already expired, and ethical concerns, such as the practice of labelling goods with new expiration dates. According to the reports, the company is run by an individual rather than a team of professionals. Consequently, putting faith in reliable individuals instead of implementing cutting-edge company strategies to tackle the fierce competition nowadays.
After widespread payment defaults and store closures, suppliers have grown wary of prolonging working-capital cycles, putting pressure on Modern Bazaar. Kumar acknowledged the concerns of suppliers, stating that vendors have been increasingly seeking modifications to payment terms. Despite the retailer's interest in a possible strategic merger, Kumar would neither confirm nor deny if a deal was on the way. Instead of trying to compete with quick-commerce platforms on delivery time, the company sees online shopping as a way to complement its stores and focus on establishing loyalty.
