A Dark store is a small warehousing urban distribution centre exclusively for online shopping with an area ranging between 3,000 to 8,000 sq ft located close to densely packed residential areas to meet quick delivery requirements.

Dark stores stock a variety of products and operate around the clock. This enables quick access to inventory, reduces transportation costs, has a quick turn-around time, and improves last-mile delivery capabilities.

However, unlike warehousing, dark stores maintain a limited inventory, often with products having a shelf life of less than 24 hours. In contrast, warehouses store a wide variety of materials in bulk quantities, without the same time constraints on product freshness or expiration.

Challenges to expanding dark stores

• One of the challenge lies in the increasing cost of property ownership in areas essential for efficient business operations. In metropolises such as Bengaluru where rental prices are steep in central districts, finding reasonably priced yet strategically located premises poses a difficulty.
• Additionally, ensuring the logistical smoothness required for prompt deliveries proves to be a challenge given urban problems like traffic congestion and regulatory barriers, especially within residential precincts.