Online is big, but stores are back?

India's retail story is entering a new phase. Even as digital adoption continues to rise and millions of consumers shop online, many of the country's biggest and fastest-growing brands are shifting their focus back to physical stores.

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For years, online platforms were the primary route for digital-first brands to reach customers. Now, the momentum is clearly turning as companies invest aggressively in malls, high streets, and experience centres. The country's digital-first brands are rapidly moving into physical retail. In the first half of 2025, they accounted for 18% of retail leasing, up from 8% last year. Delhi NCR leads this shift with 26%, followed by Bengaluru at 22% and Hyderabad at 18%. High streets attract 46% of new leases due to steady footfall, while malls capture 40% as brands tap into organised retail hubs. Standalone stores form the remaining 14% and are usually used for flagship or experience-led formats. In the first half of 2025 alone, D2C brands leased 5,94,848 square feet of retail space. Their share in total retail leasing has risen stead