The preferences and buying power of Millennials and Gen Z consumers – pegged by Deloitte-FICCI at $250 billion in direct spending - is transforming India’s retail space from a shopping and transactional hub to an immersive, lifestyle-oriented experience.
In top cities, the retail verticals capturing the lion’s share of leasing activity - apparel and F&B - accounted for 54 percent share, underscoring Gen Z’s appetite for fashion, gourmet, and lifestyle experiences, according to data from JLL, a commercial real estate advisory firm. In the first half of 2025, the retail leasing volumes soared at a rapid growth rate of 69 percent on year to a record 5.7 million sq ft.
Another property advisory firm CBRE’s ‘India Retail Figures H1 2025’ report backed this trend, and said Mumbai, Hyderabad and Bengaluru alone accounted for nearly 59 percent of all retail leasing, with fashion and apparel anchoring 32 percent share, followed by homeware/departmental stores at 23 percent and luxury at 11 percent.
The Youth Factor
According to a Deloitte-FICCI report, Gen Z is projected to account for 43 percent of India’s total consumption in 2025, translating into a direct spending of $250 billion. Organized retail is on track to reach $230 billion by 2030, buoyed by demand for premium brands, sustainability and personalized experiences. India’s younger buyers are reshaping the supply side too, with D2C brands increasingly securing mall spaces, driven by social media traction and the need for an Omni-channel presence.
Mohit Goel, MD, Omaxe Group said there is a clear shift toward experience-driven formats. Young shoppers want more than just products - they want memorable, socially shareable experiences.
“For developers, this means rethinking traditional retail layouts and focusing on lifestyle-led spaces where entertainment, dining, and community activities converge with shopping. Gen Z and Millennials are spending on brands that align with their values—premium, sustainable, and tech-enabled. As developers, we must design ecosystems where retail is seamlessly integrated with leisure and digital engagement, ensuring that malls and high streets are not just places to buy, but destinations to belong,” Mohit Goel said.
Arjun Gehlot, Director, Ambience Malls – Vasant Kunj and Gurugram, said that fashion, F&B, beauty, and entertainment are anchors in evolving mall strategies. Today’s youth demand global-standard aesthetics, seamless digital touchpoints and spaces that reflect their aspirations.
“At Ambience Malls, we’ve seen how the right mix of premium international labels, home grown D2C brands, and immersive dining and entertainment zones can transform footfalls. For instance, our F&B and luxury segments have grown exponentially in leasing demand because young consumers see malls as social destinations. The focus now is on creating a retail ecosystem that feels premium, digitally integrated, and community-driven, which is exactly where Indian retail is heading,” Arjun Gehlot said.
High Streets, Malls and Mixed-Use: A New Hierarchy
High streets continue to draw crowds, but premium malls and mixed-use hubs are capturing the imaginations of Millennials and Gen Z. These destinations offer curated experiences - luxury retail, cutting-edge design, and integrated lifestyle services – in one location.
A CBRE report has projected an even bolder expansion in this space, with roughly 2.2 msf of new Grade-A mall area becoming operational in H1 2025 across metros. Supply has seen a 4-1/2-times jump on year, driven by three major investment-grade malls in Mumbai, Hyderabad, and Delhi-NCR.
Developers and retailers now view physical locations as immersive ecosystems where digital, social, aesthetic, and experiential elements converge.
Mitul Jain, Director, SPJ Group said it is no longer about single-purpose spaces - it is about blending shopping, dining, leisure, and tech seamlessly for today’s discerning Millennials and Gen Z consumers.
“They want premium store designs, interactive digital features, and curated experiences under one roof. Our approach is to create multi-use hubs where a family can spend the entire day—watch a movie, shop global brands, eat at gourmet restaurants, and still feel connected digitally. This shift is also changing how brands view physical retail—less about square footage and more about delivering a differentiated, memorable experience that drives loyalty and repeat visits,” Mitul Jain said.
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