New Delhi: The Fashion and Apparel sector has emerged as the frontrunner in India’s retail landscape, accounting for an impressive 40 per cent of the real estate leasing activity in Q1 2024 (Jan-March).
According to a JLL report, this surge was led by mid-segment brands, which captured a significant share of 40 per cent, closely followed by value segment brands at 38 per cent. This underscores the robust growth potential in India’s fashion retail market.
The report further says a positive outlook in the organised retail market is seen post COVID-19, the sector has witnessed a surge in the launching of new infrastructural development across urban centres and emerging cities. In the first quarter of 2024 (Jan-Mar) 1.1 million square feet of retail spaces were leased.
The surge was primarily led by mid-sized brands, which captured a significant share of 40 per cent, closely followed by value segment brands at 38 per cent.
After Fashion and Apparel, the food and beverage sector also saw significant growth, contributing 21 per cent of the leasing activities.
Experiential dining brands accounted for an impressive 38 per cent of the F&B segment, the report added.
The report added that domestic brands share stood at 76 per cent in leasing activities, in the first quarter of the current year. But most of these stores are multi-brand Brand Outlets (MBOs) which are also facilitating the entry of global Beauty and Cosmetics brands into the Indian market.
Additionally, seven foreign brands also chose to establish their first outlets in India, with Mumbai and Delhi NCR appearing as top choices. The majority of these brands belonged to the field of beauty and cosmetics, which has grown at an unparalleled rate in recent years.
“The organised retail market in India has witnessed a surge in new developments over the past few years, leading to a heightened velocity of launches across urban centres and emerging cities. This has motivated retailers to expand their footprint into newer micro-markets, bringing them closer to consumers,” said Rahul Arora, Head of Office Leasing and Retail Services, India, and Senior Managing Director (Karnataka, Kerala) JLL.
The report further adds that in top-quality retail centres vacancy levels are low. “In top-quality retail centres, vacancy levels remain low, hovering around 6 per cent. However, average retail developments experience higher vacancy rates of approximately 20 per cent. Efforts are now underway to revitalise non-performing and poorly managed retail developments, with some being repurposed or transformed to meet evolving market demands,” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL.
The prime retail spaces with high footfall continue to be in robust demand across the nation, as both international retailers and leading national brands display a strong appetite for superior-grade retail developments, as outlined in the report.
