With Int'l biggies take over malls, local players face space constraints
15 September 2022, Mumbai:
Mall operators in India are giving preference to international biggies and global brands over domestic retailers.
Many domestic brands are also planning aggressive physical store expansions, but good quality malls are over 95 percent occupied, and instead of giving space to existing retailers they want global brands to come.
Malls are also relocating existing brands to other floors by offering them rent benefits to make space for new brands. Some of the non-performing brands have been given the notice to perform or been told their contracts will be terminated.
New retailers are finding it challenging to find Grade A mall spaces in the current scenario. In the first place, such malls are thin on the ground. For instance, the athleisure segment is doing well and brands in that segment are looking for bigger spaces but very few have been accommodated.
Naturally, Grade A malls are the first port of call for retailers -- but what is currently happening is that there is a constant wait list, so there is zero lag between one leading retailer exiting and the next one taking up the vacated space.
No outright luxury mall is currently in the pipeline. The current focus of luxury brands on mono-brand boutiques is largely restricted to New Delhi and Mumbai, and selectively in Bangalore and Kolkata.
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