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Economic Times
29-07-2025
- Business
- Economic Times
Apparel, F&B drive 54% of leasing in H1 2025 as millennials and Gen Z shape India's retail future
Live Events Online disruption vs. experiential consumption H1 2025 leasing snapshot Among the 2 million sq. ft. of net retail absorption in H1 2025: 33% was taken up by apparel brands 21% by F&B 16% by entertainment zones 11% by home & lifestyle brands The future of retail is personalized and tech-driven (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's retail real estate is undergoing a dynamic transformation, driven by shifting consumer behaviors and preferences—particularly among Millennials, Gen Z , and even Gen Alpha. These generations are redefining retail by prioritizing convenience, digital integration, and meaningful brand to the latest research by ANAROCK, apparel and food & beverage (F&B) brands have emerged as the two dominant retail categories in terms of leasing they accounted for 54% of total retail leasing—roughly 2 million sq. ft.—across the top seven Indian cities in the first half of marks a sharp rise from their combined 37% share in 2023, signaling a significant shift in expansion strategies across the retail landscape."Individually, the leasing share of apparel—currently the top leasing category—has declined from 42% in FY19 to 37% in FY25 and is expected to fall further to 32% by FY30,' said Anuj Kejriwal, CEO & MD of ANAROCK Retail. 'On the other hand, F&B has grown from 8% in FY19 to 12% in FY25, and we project it will rise to 16% by FY30.'The decline in apparel leasing reflects broader pressures faced by traditional retail formats—particularly from e-commerce and the rise of quick segments such as hypermarkets and fast fashion are increasingly losing ground to digital alternatives that offer doorstep delivery and competitive contrast, experiential and high-value categories such as F&B, beauty and wellness, sports, and jewellery are gaining favor. 'Jewellery, for instance, grew from a mere 2% leasing share in FY19 to 5% in FY25, and is forecasted to hit 13% by FY30,' Kejriwal changes reflect evolving customer expectations. While older generations prized trust and brand loyalty, today's consumers demand personalized experiences, fast service, and emotional resonance—often driven by what they see on social media and digital distribution highlights the changing priorities of both retailers and consumers, as malls and retail spaces pivot to include more experiential zones and diversified data clearly shows how Indian retail is realigning with today's customer habits and preferences. While previous generations valued brand loyalty and word-of-mouth recommendations, Millennials and Gen Z value convenience, personalization , and emotional connection."We can see an unequivocal preference for quick, customized, valuable experiences clearly influenced by digital platforms and social media," says Kejriwal. "This change is pushing retail beyond traditional stores to tech-enabled, customer-focused formats. The aspirations of today's tech-savvy, fast-paced consumers are the key to retail success now."As technologies like AI, automation, and sustainable retailing gain prominence, the role of physical stores is being redefined. Retailers must now go beyond transactions to create meaningful connections with their audience. Flexibility, storytelling, and purpose-driven branding are fast becoming the cornerstones of modern retail success.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Hans India
13-05-2025
- Business
- Hans India
Hyderabad, Delhi NCR to Lead 16.6 Mn Sq Ft Mall Growth by 2026
India's top seven cities are set to receive 16.6 million square feet of new Grade A mall space during calendar years 2025 and 2026, according to data released Tuesday by ANAROCK Research. Hyderabad and Delhi–NCR will together account for roughly 65 percent of the total scheduled openings. ANAROCK's report shows this injection follows a period in which leasing activity outpaced supply. In 2022, top-tier markets recorded 2.6 million sq ft of new mall space against 3.2 million sq ft of leasing. The gap widened in 2023, with 5.3 million sq ft opening while leasing hit 6.5 million sq ft. Approvals slowed during the 2024 election cycle, limiting new space to just 1.1 million sq ft even as 6.5 million sq ft were leased. 'Developers responded to a clear shortfall in high-quality retail inventory,' said Anuj Kejriwal, CEO and managing director of ANAROCK Retail. 'The next two years will see supply levels align more closely with demand in leading consumption centres.' Despite concerns of oversupply, ANAROCK projects that retailers will absorb more than 12.6 million sq ft of mall space across these cities through 2026. Vacancy rates, which peaked at 15.5 per cent in 2021, are forecast to settle around 8.2 per cent in 2025 and 8.5 per cent in 2026. Retailers' confidence reflects the entry of over 60 global brands in India since 2021, spanning fashion, electronics, lifestyle and food and beverage. Their expansion has driven demand for organised retail venues in high-footfall locations, Mr. Kejriwal said. The pipeline extends beyond metros. Rapid income growth and rising internet penetration have turned many Tier 2 and Tier 3 cities into consumption hotspots. E-commerce in these markets captured 56 per cent of online retail transactions in fiscal 2024 and could reach 64 percent by 2030, ANAROCK noted. The number of Indian online shoppers climbed from 140 million in 2020 to nearly 260 million in 2024; it may rise to 300 million by 2030 and 700 million by 2035. ANAROCK Research data highlights the shift in development focus toward India's fastest-growing urban corridors. Industry watchers say the alignment of supply and demand will shape leasing trends and vacancy levels in the coming years.
