MUMBAI: Indian airports are emerging as the next battleground for retailers with number of air passengers increasing every year and a crunch for quality retail space across metros, said a JLL India report on Wednesday.
“Following in the footsteps of major transit points globally, both the Delhi and Mumbai airports now offer a good tenant mix and demand for retail space is expected to rise at other busy airports too,” it said.
The current retail-tenant profile at Indian airports includes brands ranging from apparel to wellness, convenience, travel and books, electronics, fashion accessories, opticals/ sunglasses, watches, jewellery, F&B, perfumes and cosmetics, wine and liquor as also travel accessories.
The average store size varies according to the retail category. So while apparel stores can have a store size ranging anywhere between 500 sq ft and 5000 sq ft, bookstores have an average store size of 200-300 sq ft. F&B store sizes are generally smaller as common sitting areas are provided by the airports. In case the F&B store is not in a food court or has limited store formats, it may have a sitting area within the store or if in the food court, reserved exclusively for its patrons.
“Delhi International Airport Ltd (DIAL) surpassed the 48 million passenger mark in FY2015-16, witnessing a growth of 18% in traffic over the previous year. Also, Indian airports are witnessing tremendous commercial transformation through public-private partnerships, which is resulting in the development of such dedicated retailing areas,” said the report.
“Very high returns for some brands from their airport stores explain why this format is turning so lucrative and in turn, helping transform airport terminals in major metros to retail hubs,” Pankaj Renjhen, managing director – Retail Services, JLL India.
Click Here for Original Source – Economic Times