Organised Retail Sales Volume Continues to Grow…
A recent report from CRISIL states that shopping mall operators are expected to earn 7-9 per cent higher revenue during this fiscal, which is very explicit news for the industry. The graph is going upwards, due to the strong retail consumption and improved rentals in the malls. This means that the tantamount growth in revenue will be on a high base of FY23, which will be expected to be around 125 percent of pre-pandemic or fiscal 2020.
This gives a clear indication that the return to social normalcy after mobility curbs were lifted led to substantialgrowth in footfalls and a robust 60 per cent rise in revenue to around 116 per cent of the pre-pandemic level. Considering the healthy performance of the sector, capex is expected to pick up over the near to medium term. While a sizable part of it may be funded by equity from global investors, large debt contracted for new developments will bear watching.
The retail sales in Indian shopping centres across top 8 cities grew at a Compound Annual Growth Rate (CAGR) of approximately 3 per cent to reach USD 8Bn in FY 2022. While in FY2023, the potential consumption is estimated to surpass the pre-Covid to reach USD 11 bn. The organised retail sales volume could grow at an expected CAGR of 24% between FY 2017 and FY 2022 maintaining a healthy rate of growth.
All we can say is that this year is going to be extra special for the retail ecosystem, as we continue to grow and go forward in this covid phase.
We are glad to inform our readers that Phygital Retail Convention (PRC) returns for its 2023 edition on a massive one lakh sq. ft floor plate at the magnificent Jio World Convention Centre on May 11th and 12th in Mumbai! We hope to see you join us in large numbers there.