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35 domestic and global brands entered tier-II cities in 2023


Three dozen domestic and global brands entered tier-II cities in the first nine months of 2023, as demand from smaller cities continued to be strong even after the pandemic.

According to data by CBRE, brands include H&M, Marks & Spencer, GAP and Tasva entered cities like Indore, Mangalore, Patna, Ranchi, Mysore, and Coimbatore.

Total retail stock in these 14 tier-II cities stood at 29 million sq ft as of September 23, with Jaipur, Lucknow, and Chandigarh each having retail stock ranging between 3 to 7 million sq ft. The retail development in these cities has been a healthy mix of high streets and malls.

“The E-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in tier-II cities. Investment-grade developers are setting up large-sized contemporary malls in these cities, which are seen as an entertainment destination and not just as a place to shop,” said Anshuman Magazine, Chairman, India, Southeast Asia, Middle East & Africa, CBRE.

Most non-metro cities are established trade and business hubs and are now witnessing multinational corporations and start-ups setting up offices as well. The growing population in tier-II cities is further propelling demand for a diverse range of retail offerings.

“India’s first retail REIT has encouraged developers to aggregate and upgrade their existing facilities, apart from developing new malls. Moreover, domestic and international fashion brands are looking to expand in non-metro cities, fueled by a well-aware and well-travelled consumer set,” said Ram Chandnani , Managing Director, Advisory & Transactions Services, CBRE India.City like Chandigarh has brands such as Zara, Uniqlo, Lifestyle, Shoppers Stop, Marks & Spencer, The Collective, Nike, Adidas, Skechers, Puma among others.Brands such as Shoppers Stop, Meena Bazaar, Soch, Mohanlal Sons and Tasva have planned the highest number of stores in a year to cater to the demand surge, especially in tier 2 cities, executives from these companies said.

Soch, another ethnic wear brand, has opened stores in cities like Kurnool, Muzaffarpur, Gorakhpur and Jaipur. It plans to start outlets in Udupi, Dehradun, Allahabad, Madurai, Ludhiana, Barnala, Faridabad, Jodhpur, Vellore and Thrissur.

Of the 11 department stores opened by Shoppers Stop in the last financial year, only three are in metro cities.


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