Retail sales in shopping malls to grow 29% annually to reach $39 bn by FY28

Retail sales in shopping malls across top eight cities are expected to grow 29 per cent annually to reach USD 39 billion by 2027-28 fiscal on consumption growth and opening of new malls, according to a property consultant.

Knight Frank on Tuesday released a report ‘Think India, Think Retail 2022 – Reinventing Indian Shopping Malls’ at a webinar.

“The organised retail sales volume in the top 8 Indian cities is estimated to grow at a CAGR of 17 per cent from USD 52 billion in FY 2022 to USD 136 billion by FY 2028,” the report said.

In the same period, the consultant said that the potential retail sales in Indian malls are estimated to grow at a CAGR (Compound Annual Growth Rate) of 29 per cent in the FY2022-28 period reaching USD 39 billion by FY2028.

Retail sales in malls across the top 8 cities — Mumbai, National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad — grew at a CAGR of about 3 per cent to reach USD 8 billion in FY2022.

In FY2023, the potential consumption in malls is estimated to surpass the pre-Covid-19 levels to reach USD 11 billion.

Vivek Rathi, Director Research of Knight Frank India, said that fresh supply of retail space in malls is estimated at 50-55 million square feet in the next six years, and this will drive growth in sales at shopping centres.

He said the economic growth and increase in organised retail consumption have also been taken into account.

At the end of the first six months of 2022 calendar year, Knight Frank said the total mall stock stood at 8.6 million square metre (92.9 million square feet) spread across 271 operational malls in the top eight markets.

An incremental supply of 15.5 million square feet was added between January 2020 and June 2022, despite the disruption of the pandemic, the consultant opined.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor