As metro cities in India become unaffordable and good retail spaces are hard to come by there, domestic and international retailers are exploring opportunities in small towns for expansion, says a report by real estate consultancy firm Jone Lang LaSalle. Indore, Kochi, Ludhiana, Nagpur, Jaipur and Udaipur are the upcoming cities that retailers are considering with increasing seriousness, says JLL.
JLL India Managing Director for Retail Services, Pankaj Renjhen said that all domestic and global retail brands operating in the country have plans to expand into cities where economic momentum is picking up. In such cities, most local retailers already have a footprint, but branded national and international brands also have their sights trained on these emerging cities. These six cities are emerging as lucrative as retailers and brands are attracted by the increasing incomes and rising brand awareness among consumers there, he said.
Renjhen said that a substantial number of shopping malls are being planned or are already under development in these cities. Sales in the modern retail stores in these cities are quite encouraging, and this is paving the way for the establishment of even more organised retail.