High streets gain momentum as preferred retail destinations in India post-pandemic

India has just 13.2 million sq ft high street space available across the country for retailers, compared to malls that occupy seven times the combined high street space of 93 million sq ft.
This is despite potential consumption at high street is almost three times than in a mall, according to a research by global property consultant Knight Frank. In fact, NCR accounts for more than a third of all high street locations in India including Khan Market and Connaught Place, followed by Hyderabad and Bengaluru, which contribute a fourth of the outdoor shopping space.

“In a post pandemic environment, leading retail brands across categories are zeroing in on high streets in metro cities to expand across India. Post Covid-19, convenience, easy access and open spaces have become pivotal aspects driving consumer interest while choosing a retail format to visit,” the report said.

Experts said both global and domestic retailers prefer the high street despite high rental due to better visibility and after the pandemic eased, even shoppers seek open spaces.

"As we assess the market dynamics, it is imperative for India to have an infusion of quality and world-class retail infrastructure. Currently, the country's high street landscape is insufficient to meet the growing demand for luxury experiences,” said Niladri Mazumder, president, Seiko Watch India.

About 60% of Biba stores are on the high street and does brisk business despite the challenges in the shopping environment.

“If the environment and infrastructure is improved at the local level, high street sales can substantially increase,” said Siddharath Bindra, managing director, BIBA Fashion Limited, adding that redevelopment done on high streets in Bengaluru and Connaught Place have had a positive impact.

Preference for open shopping experience increased during the pandemic as customers felt safe in an environment which did not have closed spaces with centralized air conditioning. As a result, many developers also started building organised high street after realising the potential.

“We have developed two lakh sq ft of organised high street in Gurgaon and have done the leasing like it is done in a mall. India lacks quality open spaces and brands are willing to come to such locations,” said Nandini Taneja, vice president, leasing of Reach Pro Group that operates two retail spaces in Gurgaon.

Earlier, of the total retail leasing, only 30% were on the high street, but the trend has reversed post the pandemic.
Samsung recently opened its largest premium experience store in North India at the Connaught Place in Delhi, while Japanese retailer Uniqlo also recently opened a store on Connaught Place.

Retailers also rushed to open stores at high streets as offline retail sales recorded gradual recovery across categories. Some of the high streets captured in the survey are the country’s most expensive retail hubs, even when compared to high streets in some global cities.

New Delhi’s Khan Market, Gurugram’s DLF Galleria and Mumbai’s Linking Road are three high streets in the country where retailers must shell out hefty rents to maintain brand presence.

As per the report, the potential consumption in high streets is expected to be at nearly $2 billion in FY 2023-24. This represents nearly 19% of the potential consumption of $11 billion projected for operational shopping mall stock in FY 2023-24.