Prime retail brands expand into tier II cities: CBRE report

Bengaluru: Nearly 35 domestic and international retail brands entered 14 tier II cities between January-September, 2023, according to a new report released by property consultancy CBRE on Tuesday.

With a healthy mix of high streets and malls, total retail stock across the 14 tier II cities stood at 29 million square feet as of September 2023. The total absorption across these geographies during the period under review was recorded at 2.4 million square feet, led by Kochi, Jaipur and Goa.

“The E-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in tier-II cities,” said CBRE Chairman & Chief Executive (India, Southeast Asia, Middle East & Africa) Anshuman Magazine, adding that the growing population in tier-II cities is further propelling demand for a diverse range of retail offerings.

Besides the three mentioned earlier, the 14 cities include Chandigarh, Indore, Mangalore, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore and Coimbatore.

“India’s first retail REIT has encouraged developers to aggregate and upgrade their existing facilities, apart from developing new malls. Moreover, domestic and international fashion brands are looking to expand in non-metro cities, fueled by a well-aware and well-travelled consumer set,” said CBRE Managing Director (advisory & transactions services) Ram Chandnani.

Some of the brands that are expanding their footprint across these tier II cities include Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express and Under Armour.