'Right quality malls discouraging high-end retailers to grow'

Lack of right quality of malls in many key cities in the country, which could provide proper infrastructure and attract footfalls, is discouraging high-end and luxury retailers to expand further, says a report.
"Many key cities in India have faced supply constraints in terms of the right quality of malls, which is discouraging high-end and luxury retailers to expand," Jones Lang LaSalle India, a real estate services company said in its recent research report 'Retail Realty In India - Evolution & Potential'.
The report said that in the recent past, the primary reason for growth in the retail sector were improved infrastructure, expansion of cities and the right supply of retail malls.

The report highlighted that Indian cities are witnessing demand from all types of retailers - big-box, high-end as well as luxury segments - backed by strong city fundamentals - economy, population and income.
Mumbai and Delhi have witnessed an influx of big-box, fast-fashion and high-end retailers.
Other cities such as Bangalore, Pune and Chennai have also seen reasonably good absorption of retail spaces on the back high consumerism supported by strengthening IT-ITeS sector and the strong auto, manufacturing and biotech sectors, the report said.
It said the retailing landscape varies significantly across Indian markets, as cities differ greatly in size, maturity, purchasing power and sociocultural factors.

"With the passage of time, rising incomes, urbanisation and westernisation are changing the character of mature markets, while presenting new opportunities to retailers and real estate developers in emerging cities," the report added.