Abstract The supply of small independent retailers, or nanostores, in urban areas is highly fragmented. Reducing this fragmentation potentially leads to reduced costs for last mile deliveries as well as lower transport-related externalities. Through case studies in different cities globally, including emerging economies, the potential of various possibilities to reduce fragmentation in supplying nanostores is studied. Different methodologies are applied. Results show that fragmentation can be reduced by considering the behaviour of manufacturers and storeowners as well as the feasibility of actual transport. The distinctive characteristics of an urban area that determine the feasibility are also discussed.