Mint Explainer: What the new branded retail store means for Swiggy Instamart

Mint unpacks how the store functions, whether Swiggy Instamart stands to gain meaningfully, and what this could mean for quick commerce.Swiggy Instamart did not respond to queries shared by Mint.Located in the upscale neighbourhood of M3M 65th Avenue of Gurugram, the store stands in the midst of a host of residential and commercial properties, including large housing complexes.At the outset, the store appears to be like any other department store—stocked with everyday products ranging from essentials such as pulses, fresh produce and grains to even nicotine products. Noice, Swiggy’s private label selling breads, paneer and snacks among other food items, also sits comfortably on the shelves.The store is run by PYD Retail Pvt Ltd, a seller that operates on Swiggy Instamart’s online app as well.

According to a person close to the company, the stores will continue to stock limited SKUs, especially in categories such as fresh fruit and vegetables that consumers may prefer to touch and test before purchasing.By launching a physical Instamart store, Swiggy is testing a hybrid model that blends the immediacy of quick commerce with the sensory experience of in-store shopping, according to Satish Meena, analyst at market research firm Datum Intelligence.Sellers are likely to use such stores to analyze what categories are likely to sell better and fulfil better demand forecasting and inventory control.To be sure, Instamart does have separate dark stores or micro warehouses in the area to fulfil its online orders. Products available in the store are sold at MRP and a standee with a link to download the app is placed inside the store.