High Streets will evolve to provide good retailing experience: Report
High streets may not be as sophisticated as shopping malls in terms of infrastructure, but they have a very significant role in the consumption story as their growth is a function of an area’s local ecosystem.
Property consultant Knight Frank in a report on the retail sector said that high streets, which were hit by the pandemic, will evolve to provide a good retailing experience to customers. It has estimated potential consumption in FY24 in high streets surveyed by it at $2 billion compared to $11 billion in shopping malls. On a per square metre basis the consumption in high streets is higher since they are spread across a smaller area, compared to malls.
In its report ‘Think India Think Retail’, the firm has focused on the top 30 well-known high streets across eight cities in India. These high streets occupy a space of 13.1 million square feet with 4,875 retail stores.
Also read: Karnataka elections: Exit polls hint at a hung assembly, with an edge to Congress
The survey found that Bengaluru had the best high streets in terms of the amenities and the shopping experience they provided. The National Capital Region contributed a quarter of the country’s total occupied modern retail area.
Rentals in high streets have also seen a rise post the pandemic. During the pandemic, a number of high street retailers had to close shop, as they could not sustain themselves without footfalls. This has led to a churn in occupants in some high streets with rents rising about 25 percent.
New Delhi’s Khan Market, Gurugram’s DLF Galleria, and Mumbai’s Linking Road and Turner Road were three high streets in the country where retailers had to shell out hefty rents to maintain brand presence, according to the report.
Unlike shopping malls, which are all modern trade, high streets have a mix of modern trade and non-modern retailers with the ratio being skewed in favour of the latter.