Are malls finally losing sheen?

By Priyanka Ghosh , CNBC-TV18

 

Jones Lang LaSalle Meghraj , said, "Developments take 24-36 months to happen. Three years is a long time for a brand. Some of them get access to high streets where they can move in and begin operations in three months. "

 

Levis Strauss is one such brand. Last year, the company leased a 14,000 square feet property in Mumbai's high street, Linking Road.

 

Currently, in tier 1 cities, 60% of its stores are in high streets. And in tier II cities, 90% of its stores are located on main streets.

 

Shyam Sukhramani, Director-Marketing, Levi's India, said, "We continuously need to look at the high street locations and be present in those high street locations, irrespective of the fact of whether malls come up or not."

 

Most retailers are willing to pay rentals of Rs 600-800 per square feet for high street stores in Mumbai and Delhi, twice as much when compared to mall rentals.

 

Even though the gap between mall rentals and leases for stores on highstreets in tier II cities is much lower, big brands still prefer the visibility that these streets have to offer.

 

So, from textile brands like Reid and Taylor , sports goods major Adidas and Aditya Birla-owned More stores are all looking for a 90-95% store presence on high streets. 

It is not just about delayed projects. Retailers have now realized that a dual presence in malls and high streets will be vital for continued success. In fact, experts believe that high streets of tier II cities will be the new nerve centers of India's unfolding retail boom.