Fashion retail booms as store openings across Tier III, IV cities rise by 25%: Report
13 February 2025, Mumbai
India's fashion retail landscape is experiencing a boom, according to a new report from Enalytix, an AI-driven video analytics and field-force productivity expert. As per this report, new store openings in Tier III and IV cities have increased by 25 per cent with a rise in foot traffic in fashion retail stores across India.
Mumbai accounts for 25 per cent of the fashion store footfall, followed by Bengaluru with 18 per cent, Delhi/NCR with 17 per cent, Hyderabad with 16 per cent, and Kolkata with 11 per cent. These key cities continue to drive the growth of the fashion sector in terms of shopper visits.
Based on footfall data, the Enalytix report highlights a rise in both store openings and shopper traffic, particularly in Tier-II and Tier-IV cities. Opening of fast fashion stores in these smaller cities have increased by 20-25 per cent, demonstrating their rising significance for retailers. Footfall in high-street stores in Tier-III and IV cities has risen by 40 per cent, while mall stores have experienced a substantial 35 per cent growth in footfall. This is attributed to a greater access to urban retail experiences, influence of affordable fashion brands, and the impact of influencer marketing.
Across all city tiers, mall stores are experiencing a major comeback, with footfall rising by 40 per cent compared to 2023. High-street stores in Tier-I and Tier-II cities are also witnessing a healthy 20 per cent increase in foot traffic.
Rajul Tandon, Founder & CEO, Enalytix, notes, these footfall trends represent significant growth opportunities for fashion retailers and that understanding both online and offline engagement is crucial for sustained success.
The report paints a promising picture for India’s fashion retail industry, with Tier-II and Tier-III cities emerging as retail hotspots. Retailers have the opportunity to tap into these growing markets and enhance in-store experiences to convert foot traffic into customer loyalty. Fashion brands need to innovate and engage creatively to attract and retain shoppers, the report concludes.
