With the opening of 215 new stores, the retail sector in India expanded by 44 per cent during Q4 FY2-23-24 compared to the preceding quarter.
As per IndiaRetailing Insights, this growth could be attributed to various factors, including strategic timing with festive periods like Makar Sankranti, Pongal, and Holi, which typically witness heightened consumer spending. Berry Singh, COO,
Ace Turtle, notes, retailers often strategically align store openings with these festivities to leverage increased consumer activity. Moreover, Q4 presented an opportunity for retailers to expand their presence ahead of the new financial year.
Anshuman Magazine, CEO, CBRE India, highlights, 2023 witnessed record leasing activity in the retail sector, with notable increases in prime retail space absorption across major cities. This leasing boom, reaching a historic high of 7.1 million sq ft, contributed significantly to the retail space demand, especially in newly completed malls.
Region-wise, the North and West regions experienced substantial growth in new store launches, with a 57 per cent and 55 per cent increase respectively in Q4 compared to the previous quarter. Meanwhile, the South region saw a slight decline of 2 per cent, while the East region nearly doubled its store launches, indicating emerging retail potential in that area.
Several prominent brands contributed to the surge in store openings during Q4, including international names like, Gap, Levi’s, H&M, and Louis Philippe. The retail landscape also witnessed significant acquisitions and partnerships, with Reliance Brands acquiring the UK-based Asos, while Tata Group's Misbu announced its entry into North India.
In terms of fundraising, various direct-to-consumer (D2C) brands and retail players secured significant investments totaling over Rs 1,105 crore in the fourth quarter.
