New Delhi: With malls in India increasingly serving as retail and entertainment destinations, more than 25 percent of the respondents favored operating out of a mall between the average size of 350,000-550,000 sq.ft. in space, said property advisory firm CBRE in its ‘India Retailer Sentiment Survey.’
According to the survey, this move allows retailers to gain access to a more varied retail environment ranging from supermarkets, cinemas and kids entertainment zones thereby attracting greater footfalls.
21 percent of the respondents said their preferred mall size is between 150,000-200,000 sq.ft, 18 percent respondents prefer opening their store in a mall ranging in size between 250,000-350,000 sq.ft while another 18 percent of the respondents would open their stores in a mall which is more than 550,000 sq.ft. in size, the survey said.
Ease of obtaining relevant operating licenses, along with standardized fitout terms offered by mall developers resulted in a majority of respondents having a shorter fitout time in malls vis-à-vis dealing with individual landlords on high streets, the survey further revealed.
While 34 percent respondent said the it took them less than 30 days to carry out store fit-outs in a mall, there were only 26 percent respondents who claimed the same fit-out time when they opened their store in a high street.
Majority of the respondents also said that they generally undertake refurbishment only after two-five years of initial operations due to high capex costs involved.
The survey found that lack of quality supply and willingness of retailers to be present in select quality developments has resulted in retailers downsizing requirements, thereby following a strategy of ‘location over size’. Subsequently, majority of the respondents were not open to operating out of a two-level store.
22 percent respondents said they are not interested in opening a two-level store while 47 percent were unsure about it. The remaining 31 percent retailers were though quite open to the idea of having a two-level store.
The respondents of the survey comprise of 30 percent restaurant and coffee retailers, 23 percent mid-range fashion retailers, 15 percent specialist clothing retailer, 11 percent department stores, 10 percent consumer electronics retailers and 11 percent from other categories.
Click Here for Original Source – Economic Times