A report by Knight Frank India, a property consultancy firm, predicts that the e-tail sector in India, predicted to reach almost USD 60 billion in the fiscal year 2023-24, is set to grow at a compounded annual growth rate (CAGR) of 18 per cent by 2028-29. E-tailing, which consist of the sale of goods and services over the Internet, is pushing considerable growth in the retail industry.
The report titled ‘Think India Think Retail 2024’ emphasises that at the present consumption levels across all retail categories, the income potential of shopping centers in Tier-1 and Tier-2 cities is expected to grow at a CAGR of 23 per cent throughout the same period. The Indian retail sector, adding 10 per cent to the country’s gross domestic product (GDP) and engaging 8 per cent of the workforce, is witnessing amazing expansion, with the growth of shopping centers and retail hubs not only in major metros but also in Tier-2 cities.
With the booming e-tail sector, online spending is rising as a formidable revenue driver in comparison to offline channels.
After examining trading densities around 10 retailer categories in 58 high streets, the report predicts potential spending in high streets at about US $ 3 billion for 2024-25. While Indian high streets engage about 7 per cent of the total gross leasable area in comparison to shopping centers around all cities, the building of high-quality assets is likely to attract institutional investments and new brands.
The report highlights the lasting value of high streets and notes that some retailer categories such as apparel, accessories, electronics, and home and lifestyle display high trading densities on high streets, providing better revenue generation for retailers on a per square meter basis across all 29 cities.
