Malls Lose Brands to High Street Stores Amidst Vacancy Concerns
India's Mall Vacancy Rate Reaches 16%
Recent months have witnessed a gradual yet noticeable exodus of brands from malls to single-format stores on high street. This trend has further exacerbated the issue of stagnant spaces in new malls, which were already struggling to secure initial bookings from retailers.
Key Findings from Cushman & Wakefield's Report
A report by global real-estate solutions firm Cushman & Wakefield (C&W) highlighted that the mall vacancy rate in urban India touched a high of 16% by the end of 2008. The survey, conducted across eight major cities:
- NCR
- Mumbai
- Kolkata
- Ahmedabad
- Bangalore
- Chennai
- Hyderabad
- Pune
attributed the high vacancy levels to inconsistent mall supply and the resurgence of high street as the most sought-after retail destination.
City-Wise Vacancy Levels
- Delhi: 24%
- Pune: 15%
Expert Insights
- Shubhranshu Pani, MD (Retail), JLLM (Jones Lang LaSalle Meghraj):
"There is a gradual but noticeable exodus from malls to single-format stores on high street. Today, retailers seek viability in stores and give lesser importance to stores for branding purposes."
- Rajneesh Mahajan, Retail Services Director, Cushman & Wakefield:
"The retailers are preferring the high street because of higher visibility, independent access, and the greater comfort level as compared to the malls."