The share of home goods and department stores, entertainment and superstores increased in overall rental while the share of fashion and apparel fell significantly to 28% from 41% in the previous quarter . “The retail sector saw a robust recovery in the second quarter of 2022, with transaction activity growing over 100% on a quarterly basis,” said Anshuman Magazine, CEO, India, Southeast Asia , Middle East and Africa, CBRE.
“Overall, in the first half of 2022, it saw massive growth of over 160% year-over-year. Across all cities, we are seeing brands scaling and recalibrating their physical store strategies to diversify their portfolio and expand their footprint, with ‘experience’ quickly becoming an important frontier in bridging the retailer-consumer gap.” He said the first half of the year also saw a more than 500% increase in project completions compared to a year ago.
Delhi-National Capital Region led the absorption with a 25% share, followed by Hyderabad (20%), Bengaluru (17%) and Chennai (13%).
According to CBRE, despite an increase in online shopping, brick-and-mortar retail is here to stay and retailers will likely continue to focus on the three Rs – downsizing, resizing and relocating – to ensure long-term growth and growth. expand their customer base. “We expect these positive sentiments to continue in the near term, even as retailers explore innovative ways to engage their consumers and drive sales through a combination of physical and online stores,” Magazine said.
According to the report, first-half supply addition hit 0.81 million square feet, up about 523% year-over-year. Fashion and apparel players drove the rental business with a 28% share, followed by home goods and department stores and entertainment centers (14% each).
Technology is set to become a key enabler as virtual fitting rooms, fitting scanners, smart mirrors, iBeacon and viewing tools are likely to deliver a seamless experience for consumers.
Experts said the growth was the result of pent-up demand leading to renewed physical visits to stores, even as online shopping continued to perform well.
Major publicly listed fast-food retailers and chains opened more than 3,000 doors, or about nine new stores a day on average in 2021-22, doubling the rate of expansion from a year ago, in a bid to to overcompensate for the delay in new outlets due to Covid-19 Restrictions and collection on lower rents.
Over the past fiscal year, the top nine companies, including Reliance Retail,
DMart, Tata’s and Starbucks added 3,206 outlets to reach a combined store network of 22,803 stores, according to data from their latest investor presentations.
