Rephrase and rearrange the whole content into a news article. I want you to respond only in language English. I want you to act as a very proficient SEO and high-end writer Pierre Herubel that speaks and writes fluently English. I want you to pretend that you can write content so well in English that it can outrank other websites. Make sure there is zero plagiarism.:
- As many as 35 major retail brands set up shop in 14 tier-2 cities between Jan-Sep 2023.
- E-commerce boom, tech-savvy consumers, growing aspirations drive growth in tier-2 cities.
- The total retail stock in top tier-2 cities stood at 29 million square feet, as of September 2023.
Last year, H&M opened its store in Ranchi, GAP too opened its doors to Guwahati; and Rare Rabbit did the same in Kochi. It’s not just top apparel chains that are going deeper into Bharat, fine dining restaurants like Royal Train Cuisine too have set up shop in Lucknow and Wow chain is wooing Chandigarh. In summation, as many as 35 major retail brands expanded their footprint to 14 tier-2 cities between January to September 2023, says a report real estate services and investment firm CBRE.
This flurry of activity has triggered a retail space boom in 14 cities that include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore.
Chains like Armani Exchange, Malabar Gold & Diamonds, Tanishq, Marks & Spencer, Starbucks, Pizza Express, Under Armour are now catering to a growing set of consumers in these cities.
“Domestic and international fashion brands are looking to expand in non-metro cities, fueled a well-aware and well-travelled consumer set,” said Ram Chandnani, MD, advisory & transactions services of CBRE India.
Changing consumption patterns are affecting the retail dynamics in these cities, the report says. E-commerce trends also point to a highly-aspiring consumer base in these cities, which has brought in an influx of quality retail supply.
“A striking example of evolving consumer patterns in these cities is the fact that 50% of online urban shoppers were residing in these tier-2 and tier-3 cities. A percentage that’s projected to reach nearly 60% 2030,” the report adds.
| City | New retail brand entrants in Jan-Sep 2023 |
| Chandigarh | Dayal Opticals, Khan Chacha, Wow Momos, Wow China, Rare Rabbit |
| Jaipur | Tasva, Under Armour, Mango, Rare Rabbit |
| Lucknow | The Sleep Company, Pizza Express, Theobroma, Royal Train Cuisine |
| Patna | Croma |
| Indore | Tasva, Style Up |
| Goa | Armani Exchange |
| Kochi | Campus, La Pino’z Pizza, Bluestone, Tasva, Rare Rabbit |
| Coimbatore | Taneira, The Sleep Company, Style Union |
| Visakhapatnam | Starbucks, Taco Bell, Being Human |
| Mysore | Croma, Tanishq, Fashion Factory, Bluestone |
| Mangalore | Reliance Smart, Malabar Gold & Diamonds, BlueStone, Tasva, R&B |
| Guwahati | GAP, Zudio, Croma, Forever 21 |
| Ranchi | H&M, Marks & Spencer, Max, Homecentre |
| Bhubaneswar | Zudio, Marks & Spencer |
Source: CBRE
The mall & high-street boom
As high-end retailers make a beeline for tier-2 city business, the retail developments in the cities also picked up pace. The total retail stock in these 14 cities stood at 29 million square feet, as of September 2023. Amongst them, Jaipur, Lucknow, and Chandigarh each boast retail stock ranging between 3-7 million square feet.
In the three months between July and September 2023, around 2.4 million square feet was added in the 14 cities. Most of it was added in Chandigarh, Jaipur and Lucknow. Also, a similar amount – again 2.4 million square feet – was absorbed across these cities, led Kochi, Jaipur, and Goa.
“The e-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in tier-II cities. Most non-metro cities are established trade and business hubs and are now witnessing multinational corporations and start-ups setting up offices as well,” said Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa of CBRE.
The retail developments have a healthy mix of malls and high streets. But, they too are evolving from vanilla stores in high-streets to malls top-end developers. A lot of high-end malls have also come up in recent times like Nexus Elante Mall in Chandigarh; World Trade Park Mall in Jaipur; DLF Mall in Panjim and more.
“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,” adds Magazine.
SEE ALSO
The rising affluence of small town consumers driving demand for premium products