Hyderabad to add 40L sq ft organised retail space

Hyderabad: Hyderabad's organised retail stock has reached 11.4 million sq ft in January-June (H1) 2021and it is expected to add about 4 million sq ft to reach 15.5 million sq ft within the next two years, as per a report. The existing retail stock accounts for 17.72 per cent of the country's organised retail stock, which has reached 64.3 million sq ft as of H1 2021 and is expected to cross 82 million sq ft by 2023.

According to real estate consulting firm CBRE South Asia Pvt Ltd'sreport titled 'India Retail Reboot 2021',the top three sectors under e-commerce that led the segments steady growth were apparel & footwear, beauty & personal care, and consumer appliances. Sectors that are showing significant rebound from 2020 levels are department stores, apparel & footwear, hypermarkets and electronics. The report further highlights that with the onset of the pandemic, the consumer behaviour shifted towards 'conscious buying', leading to a significant shift in consumer purchase behaviour both across physical retail and E-commerce. The F&B, e-commerce, pharmaceuticals, and the traditional grocery retailers as the top performing sectors witnessed steady growth despite the pandemic.

Anshuman Magazine, Chairman, India & South-East Asia, Middle East & Africa, CBRE, said: "The overall outlook for the Indian retail real estate market continues to be positive at the back of an accelerated vaccination drive, policy reforms, and increasing urbanisation. Moreover, with more investors looking at REITs and fractional ownership for the commercial segment, the sector is embarked on a growth trajectory."

Bimal Sharma, Head, Retail Services, CBRE said, "The Indian retail sector stands at a chance of transformation as retailers continue to adapt their store formats to address the needs of different customers across markets and geographies. The pandemic has led retailers to explore newer trends like digitally enhanced experiences, pop-ups and omni-channel retailing."

"While we expect brick and mortar stores on hi-streets and in shopping centers will continue to flourish, retailers will have to rethink and realign their business strategies to meet the demand of the customer that is constantly exposed to the evolving online shopping experience. With the renewed demand and bounce back of retail, we are seeing a number of international brands both in the retail and the F&B sectors showing interest in the country," he added.

The consulting firm expects to see the international brands enter India starting early 2022 which would contribute to the overall sectors' growth, going forward. The pandemic created an urgent need for the retail sector to adapt to the evolving market landscape. Trends that were on a multiyear trajectory saw dramatic acceleration and the retail industry witnessed more innovation in the past year than it did in the prior decade.

CBRE has identified six imperatives that are expected to help retail stakeholders adapt to a changing consumer landscape while pursuing new opportunities.