With the advent of online shopping, malls are getting restructured with food and beverage, along with entertainment, now making up for 40 percent of the space, against 15-17 percent until a few years ago, according to a study by ANAROCK Property Consultants.
Speaking on Day 2 of India Retail Forum, Ashutosh Limaye, Director & Head-Consultancy Services, ANAR, a real estate consultancy firm said, “Entertainment zones keep the kids occupied, creating hassle-free shopping experiences for the parents.”
“Malls are also designing more open spaces for live events to go that extra mile to attract shoppers. Moreover, malls are allocating up to 40 percent of the space to Food, Entertainment & Cinema (FEC) to drive footfalls,” he added.
Mobile penetration has boosted online shopping with lower cash on delivery and more through payment gateways. Moreover, with messaging on the rise, the internet linked mobile usage is set to reshape the retail business with mobile moving from being a mere technology to consumer behavior.
Further, mobile is increasingly reshaping the retail business with 2.2 hours per day mobile usage per young adult and 80 percent users using the net on their mobile while watching TV and shopping online he said.
The fallout is that shopping is no more about transaction across the counter, paving for the customer to experiment further with food, taste and entertainment, he said.
Limaye said shopping malls also have a huge untapped growth potential for reputed brands in Tier II and Tier III cities due to lower rental value at Rs 40-80 per square feet in a prime location as compared to Rs 150-250 per square feet in equivalent metro locations.
The operating cost is also 30-50 percent lower than that in metro cities, Limaye said.
With rising scarcity of land for exclusive retail developments in metros & Tier I cities and increasing demand for malls, developers are now looking at mixed developments for the creation of retail infrastructure combined with commercial offices or residential projects, he said.[“Source-moneycontrol”]