E-commerce Impact, Tech-Savvy Consumers, and Strategic Investments Drive Major Retail Growth in Jaipur, Lucknow, Chandigarh, and Beyond reports Surfaces Reporter (SR)
In a significant development, over 30 major retail brands, both domestic and international, have entered 14 Tier-II cities in India during the period from January to September last year, according to a report by property consultant CBRE. Among the brands that have expanded their retail footprint in these cities are Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, and Under Armour.
These Tier-II cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore.
As of September 2023, the total retail real estate space in these 14 Tier-II cities stands at 29 million square feet, with Jaipur, Lucknow, and Chandigarh each boasting of retail real estate space ranging between 3 to 7 million square feet.The retail development in these cities has been a healthy mix of high streets and malls. Investment-grade developers are setting up large-sized contemporary malls in these cities, which are seen as an entertainment destination and not just a place to shop.
This trend of retail expansion in Tier-II cities is driven by several factors. The e-commerce boom, tech-savvy consumer base, growing aspirations, and surge in discretionary purchasing are defining the retail growth in these cities.This development indicates a significant shift in the retail landscape in India, with major brands recognizing the potential of Tier-II cities and investing in them. The growing population in these cities and the rise of multinational corporations and startups setting up offices are further propelling demand for a diverse range of retail offerings.