Demand in the retail market will increase, with retail sales increasing by 19 percent in 2022

New Delhi: With the worst impact of the Covid pandemic subsiding, the retail sector is expected to sustain growth on consumer sentiment, consumer demand and adoption of omnichannel by brands and retailers. Mall developers are also excited by this bright outlook.

According to the Retailers Association of India, the size of the retail market is expected to touch $2 trillion by 2032. Retail sales are projected to grow nearly 19 percent in 2022, surpassing pre-pandemic levels.

Buoyed by this growth, developers plan to add about 25 million square feet of new mall space in the top 7 cities over the next 4-5 years; NCR and Hyderabad account for about 46 per cent of the total new arrivals, while Bengaluru is close at 19 per cent.

Currently, the top cities have over 51 million square feet of mall stock across the country, with NCR, Mumbai Metropolitan Region, and Bengaluru accounting for the share.

Spending by high-end brands in the tier-nine cities has increased by more than 50 percent compared to the pre-pandemic period. Availability of larger land parcels and lower rents as compared to larger cities are playing an important role in attracting several brands, the report said.

In fact, changing shopper behavior and interest in tier-one and tier-one centers for the 'experience' where shopping is combined with leisure and entertainment has forced mall developers and brands to consolidate their presence in these untapped markets. Demand for retail leasing has increased due to increased consumer spending power. This has also led to an increase in the average rent.

Industry analysis shows that rents at high-street locations in the country's top eight cities are set to increase by 50 per cent in 2022, while shopping malls saw an annual average rent increase of 10 per cent,' said Aman Trehan.