A key factor in the growth of Indian retail over the last year has been the fashion and apparel industry.
Expansion of international apparel brands like Victoria’s Secret and Uniqlo from July to December 2022 pushed retail space consumption, specifically in Tier-2 cities leading to growth in retail spaces in these cities.
Uniqlo opened its first store in Chandigarh with Biba and Shoppers Stop opening in Dehradun. American home furnishings shop chain Pottery Barn made its foray into Delhi-NCR during the second half of 2022 by opening two stores in rapid succession. Adidas opened its largest experience store in Delhi-NCR and experience and flagship stores of companies like Zara, Azorte and Nike have also opened in the city, with a wide range of tech and other services.
According to a report by CBRE, fashion and apparel retailers continued to expand their footprint from July to December 2022, amounting to a share of more than 42 per cent in overall leasing during the period.
During the second half of 2022, retail space consumption increased by 5 per cent to 2.43 million sq. ft. as opposed to the first half of the year with 2.13 million sq. ft. In 2022 the retail sector, overall, grew by 20 per cent to 4.7 million sq. ft.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE said, “The Indian retail sector is recovering, and we anticipate that it will continue to gain momentum through 2023. Even amid difficult global economic conditions, international brands are expanding not only in Tier-1 cities but also penetrating Tier-2 and Tier-3 cities as they see India as a potential market.”
