The report from CBRE South Asia states that the total retail stock in 14 tier-2 cities stood at 29 mn. sq. ft. as of September 2023
New Delhi: Nearly 35 major domestic and international retail brands entered 14 tier-2 cities in the January to September 2023 period, according to a report by the real estate consulting firm CBRE South Asia Pvt. Ltd.
The report titled ‘Tier-II Cities: The Time to Shine’ shows that several domestic and international retail brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, Under Armour, among others, have expanded their retail footprint to tier-2 cities in the said period.
The retail development in these cities has been a healthy mix of high streets and malls. The total retail supply recorded in the 14 cities has been around 2.4 mn. sq. ft. in the said period.
Top cities dominating supply addition during this period include Chandigarh, Jaipur and Lucknow. The total absorption across the 14 cities stood at 2.4 mn. sq. ft., led by Kochi, Jaipur, and Goa.
Emerging east indian retail hotspots, include Guwahati, Ranchi and Bhubaneswar.
Speaking on the report, Anshuman Magazine, chairman & chief executive officer, India, Southeast Asia, Middle East & Africa, CBRE, said, “The e-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in tier-II cities.
Investment-grade developers are setting up large-sized contemporary malls in these cities, which are seen as an entertainment destination and not just as a place to shop.”
Tier 2 East Cities shine
Guwahati
The largest city in Assam serves not only as a geographical focal point but also as a vital trade and commerce hub for the entire Northeastern region of India. Known as the ‘Gateway to the Northeast’, Guwahati is uniquely positioned to unlock the immense retail potential of the region.
This growth is manifested in the proliferation of shopping malls, retail outlets and hypermarkets across the city. The emergence of several large shopping malls stands as a testament to Guwahati’s retail boom, bringing a diverse array of domestic and international brands to cater to the city’s consumers.
- Comprises prominent malls such as City Centre, Central Mall, Rudrakash Mall, and NCS Mall offering a wide range of options across categories
- Prominent high streets are GS Road, Zoo Road, AT Road, and Paltan Bazaar catering for the likes of lifestyle, fashion and apparel, entertainment, F&B brands
- Key brands include Pantaloons, Shoppers Stop, Westside, Max, Zudio, Centro, Reliance Trends
- Upcoming supplies in the city include Amrit Leela BuildCon, Achyut Group
Ranchi
The capital city of Jharkhand has experienced rapid urbanisation, keeping pace with its active economic growth and expanding population. The city has been witnessing significant infrastructural developments to cater to the needs of its residents and support its growing economy.
The retail segment in Ranchi initially began with unorganised developments in areas such as Upper Bazaar and GEL Church Complex but has gradually evolved after the emergence of high-street formats and semi-investment grade/plaza formats.
With the launch of Spring City Mall followed by Nucleus Mall, the organised retail activity in the city has gained momentum post-2010.
- Houses Mall of Ranchi, Spring City Mall, Central Mall, Eastern Mall offering domestic and international brands across categories
- Houses JD High Street, one of the most prominent high streets, which includes a wide array of domestic brands, especially across F&B and entertainment categories
- Key brands include Reliance Trends, Tanishq, Reliance Smart, Shoppers Stop, Fabindia, H&M, Marks & Spencer
- Upcoming supplies in the city include Nucleus 3, R Ali Mall
Bhubaneswar
Known as the ‘Temple City of India’, it is home to unique cultural and heritage centres and handcraft industries. Bhubaneswar has emerged as an IT and education hub, attracting professionals and students from various parts of the country. This influx of people has created a demand for a diverse range of retail offerings.
- Nexus Esplanade has revolutionised the retail landscape in the city, as Odisha’s first comprehensive shopping destination, offering a wide array of domestic and international brands, housed under one roof.
- Houses some of the prominent malls such as Forum Mart, Nexus Esplanade, symphony Mall DN Regalia Mall, Utkal Kanika Galleria Mall
- Prominent high street with key jewellery, fashion and apparel brands
- Key brands include Max, Zudio, Centro, H&M, Taneira, Reliance Trends, Lifestyle, Max, Starbucks, Westside, Malabar Gold, Caratlane
- Upcoming supplies in the city include HP Square mall
