Ground reality of Demonetisation impact on Brick and Mortar Stores


India 18 November 2016
: With the recent demonetisation move by the Govt., Nanolocal Technologies studied its impact on brick and mortar stores in Bengaluru. Nanolocal Technologies understands consumer pattern using its consumer app, bounty, which is developed for Android smartphones and is available on Google's playstore. bounty rewards its users for simply walking into a partner place (over 20000 outlets). This automatically puts Nanolocal Technologies in an enviable position of having rich user data that helps them understand consumer behavior in a variety of commercial spaces. 

With the recent demonetisation move, and by comparing the before and after consumer patterns on bounty, interesting behavioral changes have been noticed! The consumer patterns between 2nd and 6th Nov were compared with consumer patterns between 9th and 13th Nov. Consumers transaction through debit and credit cards went up by a staggering 192%. People transacted more at large chains of restaurants and super markets which accept cards.

First day after demonetisation, 9th Nov, footfall in stores increased by 18%. With the banks being closed on the 9th, it is possible that consumers were looking to transact with the old notes.

It was also noticed that consumers did not compromise on basic necessities like food and grocery. Restaurants and cafes saw a rise in footfall by as much as 20%, supermarkets and grocery stores by about 9.5%. Non-basics such as book and optical stores saw a reduction in footfall - book stores by 16% and optical stores by 18%!

*This data is derived by studying consumer behavior in Bengaluru of users who are predominantly in the age group of 18-35.


Nanolocal Technologies Private Limited - Driving consumer experience through data sciences and technology

bounty is a (free) mobile app that gives you real rewards for just walking into places! Whenever you walk into our partner places, the app's 'intelligent assist' automatically alerts(event without Internet & GPS) you to check-in and you earn points for that single tap. You can redeem these points for a variety of eCommerce, shopping, movie, spa vouchers etc. bounty is currently live in Bangalore, Chennai, Hyderabad, Delhi and growing everyday!