Emergence of a retail street is a product of multiple factors working behind it, directly or indirectly. Emerging destinations apparently witness unique synthesis of growth factors and limitations. Cushman and Wakefield in its study attempted to identify most promising retail centres in seven cities.
In Mumbai, Ambadi Road and Airoli have emerged as most promising retail destinations. The Cushman and Wakefield study attempted to outline multiple market forces, which have shaped the current retail landscape in the emerging main streets.
Ambadi Road, located in Western suburbs of Mumbai, is rapidly positioning itself as a major emerging main street. Its proximity to the Western suburbs and comparatively low residential prices has helped this region to cater a large population. The demographic nature of this region is marked by mid-income earning population.
In addition, it is close to the suburban railway station, which provides easy access to this main street. So there are two advantageous aspects in its favour, railway station and high density residential catchment.
The urban sprawl is apparently the strongest driving force that aided this region to emerge as thriving main street market. Easy accessibility is yet another plus point for the region.
However, distance from business district and avialability of quality retail space is, of course, a matter of concern.
According to C&W data, Ambadi Road has 89% penetration of Domestic brands, whereas foreign brands constitute only 11%. Consequently, the region holds a huge retail potential.
The rent in this area is on slightly higher side.
Advantage - Vasai: An established mid-income residential location
Airoli (Sectors 4 & 8)
Airoli (Sectors 4 & 8), located in Navi Mumbai area, is yet another promising and emerging retail street. In recent times, it has become an IT-ITeS hub and it has cascading effect on main street retail of Sectors 4 and 8 in recent years.
The sprawling IT parks and IT SEZs such as Mindspace on the Thane-Belapur Road houses a large floating population, which surely proved to advantageous for the region to emerge a s potential retail street.
The C&W report says that the office space in Airoli and Thane-Belapur Road is expected to increase by 50% of the current stock in the next two years, which will give a fillip to main street retail in Sectors 4 and 8 where enquiries from F&B, electronics and apparels segments is high.
This area contains a large chunk of young working population.
However, proximity to business district proved to be the main driving force behind Airoli to emerge as a potential retail market centre. The second factor was the nature of urban sprawl in the area that immensely helped this region.
The accessibility can rated average, whereas availability if quality retail space is low.
According to the report, Ambadi Road has 89% penetration of Domestic brands, whereas foreign brands constitute only 11%. As the region has emerged as an IT-ITeS hub, the place holds huge possibilities for retailers.
As so far rent and rental growth is concerned, they are on the higher side.
Advantage - Growing concentration of IT-ITeS Parks in Airoli