With the advent of the online shopping, malls are getting reconfigured with food and beverage along with entertainment now allocating for up to 40 percent for the space compared to 15-17 percent in the past few years.
Speaking on the Day 2 of the India Retail Forum presented by Mapic and powered by Future Group, Ashutosh Limaye, Director & Head – Consulting Services, ANAROCK Property Consultants said, “Entertainment zones keep the kids occupied, creating hassle-free shopping experiences for the parents. Malls are also designing more open spaces for live events to go the extra mile to attract shoppers. Moreover, Malls are allocating up to 40 percent of the space to Food, Entertainment & Cinema (FEC) to drive footfalls.”
With increased tracking of customer on real time basis including their behavioral study and getting quality leads, the challenge is to differentiate between the enthusiastic shopper and the reluctant one. This is based on the inputs that the customers have shared into the system and databased through social media.
As a fallout, shopping is no more about having a transaction across the counter paving for the customer to experiment further with food, taste and entertainment, he said.
Shopping malls also have a huge untapped growth potential for reputed brands in Tier II and III cities with lower rental value at Rs. 40-80 per square feet in prime location as compared to Rs 150-250 per square feet in equivalent metro locations. The operating cost is also 30-50 percent lower than those in metro cities, Limaye said.
With rising scarcity of land for exclusive retail developments in metros and Tier I cities and increasing demand for malls, developers are now looking at mixed developments for the creation of retail infrastructure combined with commercial offices or residential projects in Tier II and Tier III cities, he said.