As per the report, some of the top reasons for consumers to visit malls include shopping (82%), watching movies (73%), dining (56%), and leisure outings with friends and family (56%)
Bengaluru: Malls and shopping centres segment is expected to grow at a rapid pace, with a projected ~17% CAGR (compound annual growth rate) from 2022 to 2028, outpacing the overall growth of the retail pie, according to a report by professional services firm Deloitte India and the Shopping Centre Association of India (SCAI).
As per the report, some of the top reasons for consumers to visit malls include shopping (82%), watching movies (73%), dining (56%), and leisure outings with friends and family (56%).
Other reasons contributing to footfalls of the malls include gaming zones (22%), festival celebrations (18%), activities and play areas for children (11%), concerts/shows (10%) and exhibitions (8%).
“As India sets its ambitions to head towards a $5 trillion economy, the potential role of shopping centres in our nation’s growth has to be emphasised,” said Rajat Wahi, Partner, Deloitte India.
“In addition to generating revenue for the economy, shopping centres also contribute to the development of the country’s social infrastructure and give both foreign and native businesses a platform to access the Indian market. These centres serve as essential catalysts for India’s economic change,” he added.
In 2022, malls and shopping centres accounted for about 12% of the overall retail market in India, contributing about 1.2% to India’s GDP. With an annual revenue of close to Rs 1,80,000 crore, employment opportunities for 1.2 crore people, and tax contributions of Rs 35,000 crore, the shopping centre industry is pivotal in driving economic growth and fostering employment opportunities, added the report.
“Shopping centres have turned out to be a catalyst for retail growth in the country. Developers have been very bullish about developing malls not only in tier 1 and tier 2 cities but also moving to tier 3 and 4. With 275 to 300 million sq. ft. already operational and another 35-40 million sq. ft. getting operational in the next 18-24 months, the industry is adding quite a lot to the economy,” said Mukesh Kumar, chairman of board of directors, SCAI.
Nearly 50% of India’s shopping mall stock is concentrated in eight major cities: Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, the National Capital Region (NCR), and Pune. NCR has the highest share of malls amongst the top eight cities at 34%, followed by Mumbai at 18% and Bengaluru at 17%.
Malls are also expanding to tier-2 and 3 cities due to lower rental rates and operating costs, contributing to retail growth in India. Between 2006 and 2017, these cities received $6.2 billion in overall retail investments.