Hyderabad: Hyderabad, which has witnessed consistent growth in office and residential segments, continues to show growth momentum even in the retail space, particularly in the high street areas (commercial shopping hubs), despite the pandemic.
Between January and May 2021, major retailers have leased spaces in high street areas of Madinaguda, Dilsukhnagar, LB Nagar, Vikrampuri, Shaikpet, Rajendranagar, AS Rao Nagar, Kothapet, Rampally and Nagaram.
While AS Rao Nagar, Nagaram and Rampally saw large size deals, Madinaguda and Kothapet saw three deals each out of the total 16 deals witnessed during the period. Hyderabad witnessed investments in retail segments such as consumer electronics, eyewear, food & beverage (F&B), apparel and jewellery.
Pantaloons, Croma and Reliance Trends accounted for more than 60 per cent of the high street leases that took place in the city during the period. Other retailers include Lenskart, Pizza Hut, KFC, Kalyan Jewellers, Reliance Smartpoint, Allen Solly and Fab India. Total leases by the retailers stood at around 58,500 sq ft in the five-month period.
According to Pankaj Renjhen, COO & joint MD, Anarock, “High-street markets have been doing very well in these times and we are seeing many retail brands eye these locations as part of their expansion strategy. Well-capitalised retailers with established business models are using their competitive advantage to negotiate good deals to expand their footprint and gain a larger market share.”
“High streets offer a good opportunity with attractively low start-up time, lower cost of operations and less dependency on immediate adjacencies. High streets already have a considerable base of footfall traffic,” he added.
Pan-India, several quick service restaurants (QSRs) operating in the food and beverage sector (Starbucks, Pizza Hut, KFC, etc.), apparel brands and even large format stores such as Pantaloons, Westside, Zudio, Reliance Trends and Max are actively expanding their high street presence.
Between April 2020 and May 2021, retail brands closed over 120 lease deals at key high street markets across India. The deal sizes ranged from 400 sq ft to 35,000 sq ft. High-street leases were dominated by apparel brands accounting for over 23 per cent share, followed by F&B with a 15 per cent share, and jewellery with 12 per cent.
Top retailers expanded in Hyderabad, Bengaluru, Pune, Delhi, Chennai, Mumbai and Gurugram besides a few tier-2 and tier-3 cities, Renjhen noted.
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