35 domestic, international brands enter 14 tier II cities
According to the CBRE report, the total retail stock in the 14 tier II cities stood at 29 million square feet as of September 2023, with Jaipur, Lucknow, and Chandigarh each boasting retail stock ranging between 3 to 7 million square feet.
CBRE South Asia in its latest report—‘Tier II cities: The Time to Shine’ highlights that nearly 35 major domestic and international retail brands have entered 14 tier II cities in January-September 2023 period. These 14 cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore, and Coimbatore.
As per the report, the brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express, Under Armour, among others, have expanded their retail footprint to tier II cities.
The total retail stock in these 14 tier II cities stood at 29 million square feet as of
September 2023, with cities such as Jaipur, Lucknow, and Chandigarh each boasting retail stock ranging between 3-7 million square feet. The retail development in these cities has been a healthy mix of high streets and malls. The total retail supply recorded in these 14 cities has been 2.4 million square feet during July-September 2023.
Top cities dominating supply addition during this period included Chandigarh,
Jaipur and Lucknow. The total absorption across the 14 cities stood at 2.4 million square feet in July-September 2023 period, led by Kochi, Jaipur, and Goa.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “The ecommerce 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 largesized contemporary malls in these cities, which are seen as entertainment destinations and not just as a place to shop.
Most non-metro cities are established trade and business hubs. They are now witnessing MNCs and startups setting up offices as well. Growing population in tier II cities are propelling demand for a diverse range of retail offerings.”