Pushpa Bector, senior executive director of DLF Retail, talks to IndiaRetailing about India’s potential as a retail destination, the ever-changing mall design and business among various other topics
New Delhi: From her perch as the senior executive director of DLF Retail, Pushpa Bector has a bird’s eye view of the retail business in India. DLF Retail operates about eight malls in India including some of the prominent shopping centres in the New Delhi region including Emporio Uber Luxury Mall, Mall of India in Noida, Promenade and Avenue in New Delhi. Bector has the pulse on the sales of each brand in her malls—and a good barometer to gauge retail sales in India—as most of her tenants have revenue-sharing agreements with DLF shopping centres. Bector talks to IndiaRetailing about India’s potential as a retail destination, the ever-changing mall design and business among various other topics. Edited excerpts:
Some of the retailers are citing a slowdown and said retail business has been challenged after March.
It’s right. Last year was very aggressive in growth and we saw that March, April, May and June were a little dull, but from mid-June onwards we saw it improving quite a bit.
Whether it is the Mall of India (Noida) or DLF Avenue or the Promenade Mall (in Vasant Kunj in New Delhi), we did see a good jump. We have strengthened our brand mix with new brands. In Mall of India, we are seeing a growth in footfall as well as in sales. So far, we think that most of our endeavours that we did will come to fruition.
Is the luxury segment also under stress?
I don’t think luxury is challenged. In fact, it has been showing healthy signs. For us, in luxury, the season started well in advance because it is in sync with weddings. The wedding dates or the Sayas are fewer this year compared to last year. But the big fat Indian wedding is very much on play. Hence, the designers and jewellers do well. These days for destination weddings, people wear Western wear and Indian wear. So, we are seeing a pretty healthy season.
What are anchor tenants in malls, in today’s context? Some people even suggest that food is the new anchor.
We have always been trendsetters. We set up Commons (a restaurant hub) and for the first time in the country, ground first and second, an entire zone was given to F&B.
And it is a success story: On a weekend like Friday, Saturday, or Sunday, we serve over 20,000 people. We have never done that anywhere else. So food is the new fashion. So that is an anchor that we have got and will be investing in. However, it is not the only anchor we see. In our Delhi NCR malls, fashion anchors do well be it a Zara or a Uniqlo.
We also do pop-ups and that becomes another anchor. A pop-up could take up a space of 8,000 square feet and showcase itself and its products. We have to be innovative in retail.
Commons was innovative but such innovations tend to be risky. Having Commons on the first floor was risky. Has it paid off?
Commons was the worst zone in erstwhile DLF Saket. Today, that is the best and the most happening. There is a vibe.
In a way we created an advantage out of what was perceived by customers as a disadvantage. The other part of the mall in any case was doing well because it was part of the retail experience of Saket district. So, in retail one should innovate but not go overboard. On a scale of one to 10, not more than 20% to 25%.
What are the innovations you are doing?
All I can say is that all our experiences of our current 4,000,000 sq. ft. will be on display. In this sense, we will pay a lot of attention to circulation and ease of movement of consumers. The other thing is how to create breathing spaces in our upcoming malls.
Could you explain what you mean by creating more breathing spaces?
It need not be just one atrium, there can be multiple atriums in a mall and multiple breathing spaces. But it has to make sense, it cannot break the mall. So, there will be some newness in what we are trying to do, but at the same time, we will continue to deliver to that market. What we do is really look at a catchment, talk to consumers and try to meet their demands. Today, consumer evolution is what we should be most concerned about. How do we create flexible spaces so that what is relevant today is not irrelevant five years down the line. So, we have to have flexible spaces.
You are in a difficult position; you have to please retailers, shoppers and as a listed company, also the shareholders. How do you maintain the balance?
First, we have to create budgets for the financial year. You have to be able to forecast the trend to see how the year will pan out. Is it a growth year? A status quo year or a pessimistic year? So the thinking starts from December, January onwards for the next financial year. So once the thinking is right and the predictions are right, then the numbers are only a reflection of that. The number is a commitment to the shareholders, but it also gives us a clear vision of what we have to do through the year.
In the mall space, it is a unification of this target and dispensing that vision to the entire team. The team has to own it and break it down into micro targets. Consumers must be given something new throughout the year based on the predictions. It cannot be status quo and if one can do that then you have a successful year.
What is the forecast for 2024?
So far, it’s a growth year for us because we did a lot of groundwork. Our vacancy percentage is just 2% with new stores, and new brands in all our properties… most of them have started or finished fit-outs. We are bullish this year because we think that all that work should translate into numbers.
You have been a trendsetter in malls. What are the new elements you’re bringing into your new malls?
We do not believe in creating cookie-cutter concepts. Goa, for us, is like a Mall of India for Goa, which is going to be almost 7.5 lakh sq. ft. The primary focus will be on shopping and because there are enough food and beverage options across Goa. Food and beverage will definitely be there, but we will focus on local food and we think that there is a lot to explore within the region instead of just it being another Commons.
Which rival malls do you appreciate?
Mall spaces are very public, interactive kind of spaces. Since that’s the case, you have to keep looking. I was in Bengaluru recently and I saw the new Forum Mall. Hopefully, I will see the Phoenix Mall of Asia next time I am in the city. So, you have to keep looking at what the trends are, what is happening… you can’t think that you’re the best and sit in an ivory castle.
What did you like about the new Forum?
It is interesting to see how they gave a huge iconic space to the cafes. They have tried to do something for performing arts which is something I liked. I like the wide corridors. There was breadth in what they have done. They have been generous in common area spaces. Even their heights were pretty commendable—a good six to seven metres. So everywhere there are things to learn.
That is also part of the job. But can I share this with you that there was a time when we used to be awestruck by what we saw in other parts of the world. That’s no longer the case. In India, this is a decade where we will set the trends for retailing and malls.
India is currently at around $2,400 per capita income. What happens when we get to $5,000 or $6,000 per capita income in the next 5-10 years?
Whenever economies do well, retail is the first beneficiary because people spend disposable income mainly in retail. I believe this is the decade for retail and we think that there will be a lot that will happen which will be good for us. Newer brands will come in and the $3,000 to $5,000 is a journey that is bound to happen. Retail is going to get more spread out where infrastructure is getting developed.
