Discover the Excitement: Why Premium Malls Are the Ultimate Lifestyle Destination

A recent report from Cushman & Wakefield reveals an exciting shift in the mall landscape. New malls are not just about size; they emphasize quality and experiences. With around 20 premium malls expected to open by 2026, this is a clear sign of change. These top-tier malls, which make up about 70% of the new spaces, promise high occupancy rates and a carefully curated mix of brands.

Currently, the Grade A mall stock in cities like Delhi-NCR and Mumbai is substantial. For example, in 2024, Delhi-NCR alone held 21.75 million square feet of premium mall space. Rents for these spaces have jumped by over 29% since 2019, driven by demand for luxury shopping experiences.

The Rise of Experiential Retail

The growth of India’s middle class and the transition of premium brands from online to physical stores are key trends in this retail evolution. According to a study by Grandview Research, Indian consumers are diving into premium products faster than the global average. Saurabh Shatdal from Cushman & Wakefield explains that consumers today desire unique spaces where the shopping experience complements the products.

In recent years, about 18 to 22 new international brands have entered the Indian market, catering to wealthier households. Big retail names like Reliance and Aditya Birla have an extensive reach, boasting over 900 brands each across urban and semi-urban areas.

Shifting Consumer Preferences

This premium trend is transforming mall leasing. Lifestyle brands are on the rise, while value brands are losing ground. Categories like fashion, beauty, and wellness are now central to driving foot traffic. The beauty sector, for instance, has seen its mall presence double since the pandemic, now capturing 15-16% of mall space. Meanwhile, food and beverage options have become essential anchors, rising from 6-8% to between 15-18%.

In contrast, hypermarkets and cinemas are struggling to keep up. The popularity of shopping online for daily essentials has led to a decline in foot traffic for traditional stores. Similarly, the once-busy cinemas are now seeing occupancy rates drop significantly—from around 30% pre-COVID to as low as 20%.

Strategies for Mall Owners

To thrive in this evolving environment, mall owners must focus on creating a unique theme for each mall, whether it’s family-oriented or targets a younger crowd. It’s crucial to align the tenant mix with the specific needs of the community. Engaging with tenants and adapting to consumer preferences will be essential for success.

Malls should not just offer space; they need to evolve into vibrant social hubs. Flexibility in design is important to keep the shopping environment fresh and exciting. Also, providing excellent customer service can set these malls apart from mere shopping sites.

With these insights in mind, it’s clear that the future of malls in India is about more than just retail. It’s about crafting compelling experiences that keep consumers coming back for more.

For more detailed statistics and insights into the retail market, you can read the full Cushman & Wakefield report here.

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malls, OTT platforms, Hypermarkets, cinemas, Beauty, wellness, fashion