Retail

Retail sales in Indian malls to grow 29% annually till FY28: Report

15 Sep '22

2 min read

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Retail sales in shopping malls across top eight Indian cities are projected to grow by 29 per cent annually to reach $39 billion by fiscal 2027-28 (FY28) based on new malls and consumption growth, according to London-based property consultant Knight Frank, which recently said the organised retail sales volume in the these cities is estimated to grow at a compounded annual growth rate (CAGR) of 17 per cent from $52 billion in FY22 to $136 billion by FY28.

The consultant, which released a report 'Think India, Think Retail 2022—Reinventing Indian Shopping Malls' at a webinar, said the share of organised retail in the Indian retail industry has comparatively increased in the past few years and is expected to grow even further in the coming years.

The apparel category shows healthy recovery after the third wave as consumers get back to the 'old normal' way of shopping.

The eight cities are Mumbai, Delhi National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad.

In the current fiscal, the potential consumption in malls is estimated to surpass the pre-COVID-19 levels to reach $11 billion. In March this year, all categories except accessories, had already surpassed pre COVID-19 level sales.

The fresh supply of retail space in malls is estimated at 50-55 million square feet in the next six years, and this will drive growth in sales at shopping centres, according to Vivek Rathi, director research of Knight Frank India.

The retail industry will continue to account for 10 per cent of India's gross domestic product (GDP) for the next five fiscals, the report added.

Fibre2Fashion News Desk (DS)

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