The quest for the ideal location and the right format is what every retailer always strives for, irrespective of trying times. We would like to present to you an except of the comparison study of Malls Vs Main Street Vs Local Markets in the Indian Retail.
Retailing in Malls – Shopping malls are attractive for various cultural and promotional events and as a hang out destination among the younger generations. They scored High on Convenience, Comfort and ease of Shopping. However, retailers felt that stores operating from malls faced high rentals in addition to establishment and maintenance costs. Also the conversion of footfalls in such stores is low compared to those in the main streets.
Products for Mall – Apparels, footwear, food and beverages are some of the preferred categories to be in malls.
Challenges for Retailing in Malls – Availability at Prime locations, lack of organized mall management, Predominance of sale model, High cost of operation and project delays.
Main Street Retailing – These locations are preferred due to the wide assortment of retail services they offer, that helps to meet the daily need commodities and services. The main streets across the country have high footfalls due to their inherent uniqueness and also enjoy the highest share of conversion rates, resulting in revenues for the retailer. This in turn justifies the rentals. However, it loses its sheen, compared to the malls, when it comes to customer focused shopping, promotional events, convenience and safety, largely because of parking and other infrastructure issues. Exceptions to collective promotional events are Connaught Place in Delhi, Brigade Road in Bangalore and Lower Parel in Mumbai.
Best Products for Main Street – Consumer durables, home improvement, jewellery and watches are considered to be the chosen categories that are favourable in main streets.
Challenges in Main Street Retail – Authorized commercial activity, Tenancy Issues, Lack of provisions & basic amenities, Limited parking facilities, Escalating Rentals and Limited Scope for resizing.
Local Markets – In comparison to malls and main streets, Local Markets enjoy the advantage of faster evolution and their growth is often directly proportional to the development of the residential locations in the vicinity. The format, layout and assortment of stores are typically common to most such markets in almost every Indian city. The conversion rate of local markets is also fairly favourable. Consumers prefer to shop at their local markets because of accessibility, convenience (such as free home delivery services and easy credit facilities).
Products for Retailing in Local Markets – Grocers, stationers, fruits and vegetable vendors, laundry services, vending booths and small pharmacies are some of the key occupiers in such markets along with several local food and beverage outlets. Bank ATMS are the next ones making in-roads.
Courtesy: Cushman & Wakefield