INSUBCONTINENT EXCLUSIVE:
With the worst effect of the Covid pandemic having decreased, revived consumer sentiment, usage appetite, and omnichannel adoption by brand
names and sellers are anticipated to sustain growth in the retail sector
Shopping mall designers, too, are upbeat because of this intense outlook.
According to the Retailers Association of India (RAI), the retail
market size is anticipated to touch $2 trillion by 2032
Surpassing the pre-pandemic levels, retail sales grew around 19 per cent in 2022
Increased retail demandBuoyed by this growth, designers prepare to add almost 25 million square feet of new mall area across the leading 7
cities over the next 4-5 years; NCR and Hyderabad represent almost 46 per cent of total new upcoming supply, closely followed by Bengaluru
at 19 percent, according to the report.
Kumar Rajagopalan, CEO, RAI, stated: Currently, the leading cities have over 51 million square feet
of mall stock throughout the country, with NCR, MMR (Mumbai Metropolitan Region), and Bengaluru accounting for 62 per cent of total stock
Also, costs by high-end brand names in tier-II cities has actually increased over 50 percent compared to the pre-pandemic duration
The accessibility of large land parcels and lower leasings vis-à-vis larger cities has been instrumental in attracting many brand names,
the report specified.
In truth, buyers altered behaviour and interest in tier-II and tier-III centres for an experience where shopping is
clubbed with leisure and home entertainment has actually pressed shopping center developers and brand names to consolidate their existence
in these untapped markets
Tier-II and III cities also got prominence due to the opening of employment centres in these cities, stated Anuj Kejriwal, CEO - MD,
ANAROCK Retail.Rising rentalsOwing to increased consumer costs power, need for retail leasing has increased
This has actually led to a rise in typical leasings, too
A market analysis shows that rents at high-street locations in the countrys top 8 cities surged as much as 50 percent in 2022, while
shopping malls saw a 10 percent YoY typical rent increase, said Aman Trehan, executive director, Trehan Iris.
The Anarock-RAI report
mentioned that there has actually been an increase in shopping center leas by almost 15 percent, which is higher than the pre-pandemic
Bengaluru signed up the biggest uptick, around 27 percent.
The portion modification is not much due to the fact that rentals came down
substantially during the Covid duration, they are still 20 per cent more than the pre-COVID times, Kunil stated.
Designers are of the
opinion that average leasings are expected to increase further by around 15 per cent in the next 6 months as more retail brands look for to
establish a presence in prime locations.Online vs offline retailAccording to market quotes, the online retail market in India is around 25
per cent of the total organised retail market and it is likely represent around 37 per cent by 2030
Regardless of the increasing penetration of online retail, it holds a little part of the general service.
After the pandemic, despite the
establishment of e-commerce channels, offline retail area did not deal with any significant obstacles as a high degree of combination of
physical and digital occurred, said industry experts.
Trehan said e-commerce has not impacted offline retail as India is majorly an offline
retail market and retailers are adapting to the altering market dynamics and shifting to an omnichannel environment where consumers can go
shopping through a variety of online and offline channels
Thus, its a win-win situation for us, he said.
