The COVID-19 pandemic has altered the shopping behaviour of consumers globally. The gradual opening of the economy in Unlock 1.0 in June 2020 didn’t immediately see shoppers flocking to markets and malls but eventually the pent up demand seen during the festive season has sustained itself. The consumer spending on non-essentials is also witnessing an increase.
A Retail Business Survey by the Retailers Association of India said that the retail industry’s business achieved 93 percent of the pre-COVID sales in February with consumer durables and quick service restaurants showing a growth of 15 percent and 18 percent respectively. Southern and Northern India have recovered better, it said.
Why High Streets Score Big
A prominent trend that has emerged is the evolution of shoppers’ preference for unconstrained shopping spaces; and the high street experience is fast catching up. High street offers shoppers an experience beyond shopping. The open arcade makes entry and exit of vehicle convenient, open sky dining, cafes and drive through for a quick bite make for a relaxed dining and shopping experience.
Advantages like visibility of shops and independence in operations, minimal CAM charges and the emergence of these shops as city landmarks benefit retailers immensely in carving a niche for their brands.
For an investor, the ability to lease a shop in a high street is high. Owing to minimal CAM charges, the rental yield is high and a result the capital value is high. Malls have been grappling with leasing on the upper floors, especially in non-metro cities. With a fixed CAM charge, the rental yield on upper floors is low. High street scores big on this front.
Faridabad: Emerging Hotspot
Faridabad has emerged as the hotspot for development of high street in NCR owing to the planned development that the Master plan 2031 envisages. Areas have been earmarked for residential, commercial, industrial and institutional development and the connectivity infrastructure is being strengthened with the development of expressways, highways, metro rail, sector roads so as to ease traffic from cities like Noida, Gurgaon, Delhi and other adjoining cities of NCR.
Omaxe is developing a themed high street in sector 79, Faridabad. Inspired by the architecture of world’s renowned shopping streets, namely London, Amsterdam, Athens, Hong Kong, Paris, Portugal, San Francisco, it has emerged as a destination that offers a plethora of choices in food, apparel, consumer durables and mobile phones etc. Add to it, the beautiful architecture invites people for a refreshing day out capturing the beautiful ambience. Music video and film shoots are common happenings at Omaxe World Street.
In the last four months ending February 2021, 20 brands have opened their stores, the Municipal Corporation of Faridabad has featured the project in its development story alongside other prominent landmarks in the city and the project has been conferred with several awards including the Hindustan Times Real Estate Titans for Iconic Retail Project.
In terms of property price appreciation, themed SCOs have grown anywhere between 350-450 percent in the last ten years as compared to non-themed SCOs in Faridabad.
In the near future, retailers will be inclined towards high street for its ability to attract shoppers from the vicinity. Faridabad provides the perfect opportunity owing to the new and planned development and growing habitation