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Retail rush: India's store boom defies urban slowdown
Hindustan Times Rajasthan
|July 09, 2025
Despite a slowdown in urban consumption, retail giants such as Aditya Birla Fashion and Retail Ltd and Tata Group-backed Trent Ltd are pressing ahead with plans to expand their physical footprint.
Store additions are projected to grow by 18-20% this fiscal year, with a slight increase anticipated in FY27, according to property consultancy Knight Frank India. In comparison, FY24 saw 9-10% growth, while the previous year reported 14-16%. Demand for real estate will be led by large organised retailers. Meanwhile, tier-two and tier-three cities are expected to drive growth in retail occupancy, while the top seven cities will see availability of Grade A mall supply.
Experts say retailers tend to plan store networks with a 10-20 year horizon, locking in prime spaces in anticipation of demand increasing. While discretionary spending, particularly in urban areas, has slowed, consumption is expected to recover aided by a good monsoon, lower inflation, and the recent income tax cut.
This story is from the July 09, 2025 edition of Hindustan Times Rajasthan.
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