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Pegged at ₹1,05,000 crore, the Mumbai Metropolitan Region (MMR) has the highest potential for modern retail in the country followed by National Capital Region (NCR) and Bengaluru.
According to a report by property consultancy Knight Frank and Retailers Association of India (RAI), the region offers big opportunities for retailers across all four product categories – apparel, F&B, entertainment and daily needs.
Retail expenditure The report said the retail expenditure of the MMR at ₹1,21400 crore showcases the region’s potential for modern retail in the coming years. It also said that modern retail penetration is set to increase from the current 13.5 per cent to 50 per cent by 2036.
Samantak Das, Chief Economist & Director of Research, Knight Frank India, said, “Even though the pace of modernisation of retail formats in the country is slow, Bengaluru and NCR are likely to experience 50 per cent modern retail penetration by 2026 and 2028, respectively. The modern retail segment in NCR, MMR and Bengaluru has a potential of more than ₹1,30000 crore in the daily needs hypermarkets/supermarkets) category.”
Low penetration Apparel and food and beverages have a combined potential of more than ₹30,000 crore, the report said.
The 'Think India, Think Retail, 2016' report pegged the modern retail penetration in India at 19 per cent in the top seven urban centres, which is quite low. In US, Singapore and China, modern retail penetration stands at 84 per cent, 71 per cent and 63 per cent respectively, it said.
Aditya Sachdeva, Director – Retail, Knight Frank India, “The revival of non-performing shopping centres across the country and evolution of traditional shopping street to a modern retail format is very important to make the overall retail business conducive to cater to the potential demands of the retail sector. While there is great potential for overall growth in the brick and mortar retailing methods, proper infrastructure and implementation of FDI retail policies and state-level policies is a must.”
CBRE report Meanwhile, a CBRE report said there was a new retail supply of 3.6 million sq feet on a year-on-year basis, signalling an increase of 103 per cent.
It also said that 22 new global brands had set up stores in Delhi and Mumbai. CBRE said upcoming developments focused on luxury retail in Delhi and Mumbai is likely to provide fillip to the luxury segment.
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