Kirana Friends

Kirana store or supermarket business is a low margin and high volume business; and maximising the sales potential of a store can be challenging. Several factors play a role in determining how much revenue your store can generate, including its size, location, and the type of area it’s situated in. This article will guide you through these key elements and share a bonus tip for understanding your store’s performance using a sales potential calculator.

Let’s understand this more comprehensively.

  1. Store Size: Why It Matters

The size of your Kirana store or supermarket is one of the first factors to consider when estimating sales potential. 

  • Large stores are often designed to attract a wider range of customers by offering a more extensive variety of products, catering to diverse needs and preferences. This expansive selection not only draws in more shoppers but also allows for greater flexibility in accommodating different tastes, budgets, and demands. 

  • A smallstore can be just as profitable if they focus on popular products or provide personalised customer service.

When considering store size, think about your product mix and customer demographics. A small store might excel in a residential area with limited competition, while a larger supermarket might thrive in a bustling highstreet location. Understanding your target market will help you determine the optimal size for your store.

  1. City Tier: The Impact on Sales Potential

City tier plays a significant role in determining the sales potential of your Kirana store or supermarket. Cities are often categorised into different tiers based on population, infrastructure, and economic development. The higher the city tier, the more customers you can expect, but the competition is also fiercer.

  • If your store is in a Tier 1 city, like Mumbai or Delhi, you can tap into a larger customer base and benefit from them. However, this also means more competition from other retailers and supermarkets. 

  • If your store is in a Tier 2 city, like Ahmedabad or Bhopal you can tap into a decent customer base, generate good sales and face less competition

  • If your store is in a Tier 3 city, like Udaipur or Jhansi you can tap into a growing customer base, generate decent sales and be the leader in the market

Understanding your city’s tier will help you understand your store’s sales potential and adjust your business strategy accordingly.

  1. Location: Highstreet, Residential, or Marketplace

Location is another crucial factor in determining sales potential. The area where your store is situated can affect foot traffic, customer demographics, and overall sales volume.

  • Highstreet: Stores located on busy highstreets benefit from constant foot traffic, making them ideal for attracting a wide range of customers. These locations often have higher rents, but the potential for high sales can outweigh the costs.

  • Residential: A Kirana store in a residential area caters to local families and residents. These stores are often smaller and focus on providing essential products and personalised service. They might not see the same foot traffic as highstreet locations, but they can build a loyal customer base.

  • Low rent: Stores situated in low-rent areas are typically found on the outskirts of cities, in industrial zones, or less developed neighbourhoods. These locations mostly have lower customer footfall compared to highstreet or residential areas which might affect the sales potential of the store.

Choosing the right location depends on your business model and target audience. Consider factors like rent, foot traffic, and competition when deciding where to set up your store.

Bonus Tip: Use our Sales Potential Calculator

If you’re curious about your store’s sales performance and want to know if it’s over-performing or under-performing, consider using a sales potential calculator. 

By using our  sales potential calculator, you can get insights into how your store is performing compared to kirana retail industry standards. This information can guide you in making strategic decisions, such as expanding your store, adjusting product offerings, or exploring new locations.

Kirana Friends Sales Potential Calculator can help you assess your store’s sales potential based on various factors, including location, city tier, and store size. Know your store’s potential by using the calculator. To use the calculator click here. 


Understanding the sales potential of your Kirana store or supermarket involves considering multiple factors. Store size, city tier, and location all play a role in determining your store’s success. By analysing these factors and using tools like a sales potential calculator, you can better understand your store’s performance and make informed decisions to boost sales and profitability.

If you want to increase your kirana store or supermarket’s sales potential then get in touch with Kirana Friends. You can connect with a Kirana Expert by calling or messaging us on 8010442222.

You can also download the Kirana Friends Application from the Google Play store by clicking on the link below and learn how to run your store more profitably.



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