22 July 2023, Mumbai

Outline

The 41st edition of the Retail Business Survey, conducted by the Retailers Association of India (RAI), highlights a positive trend for retail businesses. Sales in June 2023 saw moderate growth of 7% compared to the same period last year, according to an official statement by RAI.

South India leads

Regionally, South India emerges as the leader with an impressive 8% sales growth, followed closely by East India and West India at 7% and 6%, respectively. North India recorded a steady 5% growth. Shows remarkable increase

Spectacular

Category-wise, Food & Grocery, and Footwear segments exhibited remarkable performance, each showing a robust 15% growth, while Jewellery and Sports Goods sectors displayed healthy increases of 14% and 13% respectively, compared to sales levels in June 2022.

As consumer routines return to normal, retailers anticipate even more positive trends, eagerly awaiting the upcoming festival season for definitive conclusions.

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13 May 2023, Mumbai 

The Indian government has recently announced its ongoing efforts to develop a comprehensive e-commerce policy and establish rules for the sector under the Consumer Protection Act.

What all you need to know

The primary objective of these initiatives is to ensure coherence and consistency between the policy and rules. With a strong emphasis on consumer welfare, the government aims to formulate regulations that cater to the needs and rights of consumers, be it through the establishment of a regulatory body or other alternative means.

One of the key goals of the government is to create a level playing field in the e-commerce landscape by providing equal access to small and medium-sized businesses.

This move aims to promote fair competition and foster an open network of digital commerce (ONDC). By introducing the concept of ONDC, the government seeks to offer an inclusive platform that enables small players to thrive, while also benefiting consumers at large.

The government firmly refutes any claims suggesting its intention to suppress the margins of e-commerce platforms or engage in direct competition with specific providers.

In line with these efforts, ONDC has set ambitious targets for the near future. By the end of the year, the platform anticipates facilitating approximately one lakh daily transactions, a significant five-fold increase from the current number. Moreover, the number of merchants on the platform is expected to double from the existing count of 36,000, further enhancing the ecosystem of digital commerce in India.

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11 May 2023, Mumbai 

Indian shopping malls are projected to attract higher consumption due to factors such as increasing urbanization and rising income levels. However, when it comes to revenue efficiency, high streets are expected to outperform organized and formal retail assets across the country, according to a recent study conducted by Knight Frank India.

In terms of total consumption, shopping malls are predicted to record over $11 billion during the financial year 2023-34, while high streets have a potential consumption of $2 billion. However, when comparing consumption on a per square meter basis, the story changes significantly. Operational malls are estimated to have a consumption rate of $1,273 per year per square meter, whereas high streets have a potential consumption rate of $4,099.

Despite high streets occupying only 6% of the total gross leasable area compared to the extensive shopping mall stock of approximately 93 million square feet, they offer 100% efficiency in terms of maintenance costs. On the other hand, shopping malls can range between 50% and 60% efficiency, depending on their grade, due to the high maintenance costs associated with common areas, central air conditioning, and escalators.

The study highlights the importance of customer experience in the retail industry. While high streets may lack certain amenities provided by shopping centers, the modernization of Indian cities has led to the revival of many high streets, offering improved access, parking facilities, store visibility, and more.

The study also ranks the top high streets in India based on factors such as access, parking facilities, assortment of retailers, and layout. Bengaluru's MG Road tops the list, followed by Hyderabad’s Somajiguda, Mumbai’s Linking Road, and South Extension in Delhi.

Among the 30 high streets surveyed, Ahmedabad’s SG Highway boasts the highest spending quotient. Interestingly, the study reveals that the top high streets demanding the highest rents do not necessarily provide the best retail experience.

While real estate rent corrections have occurred across various asset classes, the post-pandemic recovery has led to numerous transactions being closed at rents higher than before. High streets like Khan Market in New Delhi, DLF Galleria in Gurgaon, and Linking Road and Turner Road in Mumbai command substantial rents for retailers aiming to maintain their brand presence. For instance, Khan Market sees monthly per square foot rentals ranging between Rs 1,000 and Rs 1,500, while DLF Galleria attracts rents of Rs 800 - Rs 1,200, and Linking Road reaches up to Rs 1,000.

The study also identifies NCR, Kolkata, and Ahmedabad as markets with a high concentration of non-modern retail arenas. Ahmedabad and Kolkata, in particular, have yet to witness the entry and expansion of many large national and foreign retailers on their key high streets.

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19 May 2023, Mumbai  

Amazon Web Services (AWS), the cloud computing division of Amazon.com Inc, has announced its plans to invest Rs 1.06 trillion in India by 2030. This substantial investment reflects AWS's commitment to meeting the increasing demand for its services in the country.

The funds will be utilized to expand AWS's cloud infrastructure in India, further solidifying its presence in the market. In addition to the infrastructure development, this investment is expected to create more than 100,000 full-time jobs annually, contributing to the growth of India's tech industry.

Currently, AWS operates two data centers in India. The first was launched in Mumbai in 2016, followed by another in Hyderabad in 2022. These data centers play a vital role in providing cloud services to businesses and organizations in the Indian subcontinent.

With this new investment, AWS's total planned investment in India will reach approximately $16.4 billion by 2030. The company aims to leverage this investment to expand its service offerings, which include over 200 services ranging from storage to robotics and artificial intelligence.

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Runwal Group, a prominent real estate developer, has announced the complete acquisition of R City Mall, located in Mumbai's Ghatkopar area.

The company revealed that it purchased the remaining 50% of shares from its joint venture partner of over 17 years, the Government of Singapore Investment Corporation (GIC). This move positions Runwal Group as a major player in the Indian retail industry and marks a significant milestone in their growth strategy.

According to the company's statement, the acquisition of R City Mall represents one of the largest single acquisitions in the history of the Indian retail sector. Additionally, GIC has realized over four times the returns on its initial investment through this transaction. Runwal Group's primary objective with this acquisition is to expand its annuity portfolio and establish itself as the leading retail player in Mumbai.

The collaboration between Runwal Developers and GIC began in 2006 when they joined forces for the development of R City Mall. This partnership marked one of the early instances in the real estate industry where Foreign Direct Investment (FDI) was attracted through a joint venture. GIC initially invested 50% of the capital, and together, they transformed the project into a flagship mall.

R City Mall, which opened its doors in 2009, sprawls across 1.2 million square feet of retail space. It houses more than 300 renowned Indian and international brands, including 14 anchor brands, covering a wide range of sectors such as fashion, food, beverage, and entertainment.

R City Mall also hosts the first and only in-mall format of Ikea in India, occupying an area of 72,000 square feet.

 17 May 2023, Mumbai

Pacific Group, a leading mall and real estate developer, has recently launched a state-of-the-art premium outlets mall in the bustling neighborhood of Jasola, New Delhi.

Spanning an impressive 3 lakh sq-ft, this upscale shopping destination marks the latest addition to Pacific Group's portfolio of six operational malls in Delhi and Dehradun, presenting shoppers with a truly unique and immersive retail experience.

The Pacific Premium Outlets Mall houses a remarkable collection of over 74 premium outlet brands, all conveniently located under one roof, such as The Collective, The Tank, Tommy Hilfiger, Calvin Klein, Lacoste, Skechers, Adidas, and Birkenstock, among others, all at unparalleled prices.

Addressing the growing demand and penchant for premium brands, the Pacific Premium Outlets Mall provides ample parking space for over 600 cars.

Pacific Premium Outlets Mall sets a new standard by providing an open and seamless layout, enabling shoppers to engage in up-close and personal interactions with their favorite premium brands, the group's redefining and revolutionizing the retail experience in Del

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 05 May 2023, Mumbai  

Wazir Advisors, the management consulting firm has announced a partnership with Fashion Snoops, a US-based trend forecasting and design advisory firm.

This collaboration aims to expand the reach of Fashion Snoops' services in South Asia, providing manufacturers, brands, and other stakeholders in the fashion, lifestyle, beauty, and wellness sectors with access to their world-class content and services.

With the aim to help businesses and brands thrive in uncertain and fast-changing markets, Fashion Snoops has relaunched its future forecasting platform, streamlining the product creation process to make it more intuitive, interactive, and creatively fulfilling.

Through this partnership, South Asian countries will have access to clear, actionable insights to help them succeed in an increasingly competitive market. The collaboration brings together Wazir Advisors' strong regional presence and Fashion Snoops' customised solutions, ensuring prompt and dedicated service to the industry's needs.

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