September 14, 2023: India’s brick and mortar retail sector is bouncing back with strong leasing activity of 3.16 million square foot (msf) recorded in the first six months of the current calendar (H1 2023), according to a study released by JLL on day one of the MAPIC India conference. Leasing activity in the retail sector was believed to have slowed down during and post pandemic as digital consumption was on the rise.
Dr Samantak Das, chief economist and executive director, research and REIS, India, JLL, said, “Shopping mall stock as of first half of calendar year 2023 was 89 msf with expected supply pipeline of over 38.04 msf of retail developments between H2 2023 and 2027 taking the tally to 127 msf by the end of 2027.” Food and beverage (F&B) along with apparel occupied over 51% of the gross leasing activity, Das added.
Consumers in tier 2 and 3 cities also want to enjoy the similar lifestyle as those in metro cities and hence over the next 10 years, food space will see a lot of casual dining, said Riyaaz Amlani, founder, Impresario Entertainment Hospitality that runs Social, Smoke, House Deli, Salt Water Café, Mocha, BOSS Burger and Slink & Bardot. According to their survey conducted in 2019, Indians going out for food had rose to 18 times a month from four times in 2011 compared to 72 times a month in Singapore.
Shailesh Chaturvedi, MD and CEO, Arvind Brands, and MAPIC India Chairman, pointed out that India’s retail universe will have to re-invent to remain relevant to occupy the share of the consumer’s wallet and his or her mind-space. “Consumers have the option to get distracted and hence we need to offer a differentiating offering,” Chaturvedi said.
Venu Nair, advisor and ex-CEO and MD, Shoppers Stop, said that digital adoption got fast tracked by the consumers due to COVID and the attention span of the customer has gone down. Spending three hours at the store is fine, but keeping the customer occupied for three minutes at the cash counter is a challenge. Allow the customer to initiate his shopping online and facilitate him to complete his journey at the store, by upgrading technology at the back-end in the store, Nair added.
