New Delhi: India’s retail sector recorded robust transaction activity in the second quarter of 2022, driven by a recovery in consumer physical visits, even as online shopping continued to register strong growth.
The sector also recorded 1 million square feet of leasing activity in the second quarter of 2022, up nearly 363% year-over-year and approximately 118% quarter-over-quarter.
“The retail sector experienced a robust recovery in the second quarter of 2022, with transaction activity growing over 100% quarter-over-quarter; overall, in the first half of 2022, it recorded massive growth of more than 160% on an annual basis,” according to India Market Monitor—Q2 2022 information published by real estate consultancy firm CBRE.
This growth was the result of pent-up demand which led to renewed visits to physical stores, although online shopping continued to perform well.
“Across cities, we’re seeing brands resize and recalibrate their brick-and-mortar store strategies to diversify their portfolio and expand their footprint, with ‘experience’ quickly becoming an important frontier to bridge the retailer-to-consumer divide,” said he added.
Meanwhile, supply addition was down more than 50% quarter over quarter. However, the first half of 2022 saw an increase of more than 500% in project completions compared to a year ago.
“We expect these positive sentiments to continue in the near term, even as retailers explore innovative ways to engage their consumers and drive sales on both online and offline fronts,” he said.
Meanwhile, fashion and apparel retailers’ share of rental activity slowed in the second quarter of 2022 to 28% from 41% a year ago, while that of household goods and department stores as well as entertainment has increased over the same period. F&B player activity remained similar to year-ago levels.
CBRE said that going forward, for brands, omnichannel presence should remain a key theme.
“Despite an increase in online shopping, physical retail is here to stay. Retailers have recognized the strong correlation between physical and online brand stores; therefore a mix of the two is becoming prevalent across all brands,” did he declare.
Retailers will likely continue to focus on resizing, resizing and relocating their stores to ensure long-term growth and expand their customer base.
“As experiential retail becomes a buzzword across all retail categories, the role of technology in delivering that experience will be critical. Retail technologies such as fitting rooms virtual machines, fitting scanners, smart mirrors, iBeacon, viewing tools, etc. are likely to provide a seamless experience for consumers,” he added.
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