The constant growth of e-commerce is rapidly changing the retail dynamics across the country. Moreover, there is a recent wave of online retailers opening physical stores mainly on retail streets. A recent report by Cushman & Wakefield titled ‘The World’s Main Streets Analysed’ highlights that hybrid stores offering the opportunity to shop online coupled with experience zones in malls and main streets, are expected to emerge strongly. These will have a large proportion of F&B aimed at enhancing the consumer experience.
Strategy and site location is the key driver in the brand success. For example, H&M and Cath Kidston successfully expanded their units, while KFC and Costa Coffee are reducing their exposure and vacating some units. Bengaluru is witnessing demand from retailers as the new commercial and residential developments along BEL Road, North Bengaluru and Sarjapur Road are creating expansion opportunity for retailers. Main street locations in close proximity to luxury malls such as Lavelle Road and UBL Road are registering more enquires due to the lack of availability in the malls and is likely to result in positive rental growth of between 5% to 10% in the next 12 months as the imbalance between supply and demand falls further to favour landlords.
In Hyderabad the retail scene is dominated by fashion brands with the likes of Zara and H&M entering the market over the last twelve months. The luxury retail market is less developed with demand largely driven by the automobile sector and includes Rolls Royce, Bentley, Porsche and Jaguar all who have opened showrooms in the city.
Despite limited availability of suitable spaces, the main streets of Linking Road and Fort in Mumbai continue to witness strong demand, especially from apparel retailers, whereas Bandra-Kurla Complex (BKC) is seeing heightened activity from F&B operators. Demand from apparel retailers is likely to remain buoyant as international apparel brands continue to venture into the main streets of Mumbai in the coming months. The continued rise of e-commerce is changing the retail scene across India as witnessed by the recent wave of online retailers opening physical stores and establishing a presence on the main retail streets. Hybrid stores offering the opportunity to shop online coupled with experience zones in malls and main streets, are expected to emerge strongly. These will have a large proportion of F&B aimed at enhancing the consumer experience.