Buzz in the Malls
Monsoon brings cheer to shoppers, retailers and malls alike. The End of Season Sale (EOSS) beginning July has given indications of strong consumer interest across all lifestyle categories like apparels & footwear; cosmetics, jewelry & watches and even electronics, home and hobbies, resulting in good footfalls and sales in shopping centres in all parts of India. All in all, the monsoon (sale) season has been a very rewarding period for the retail fraternity.
Adding more to the good news; driven by pent-up demand, high vaccination coverage and resumption of multiplexes, retail malls have witnessed a sharp recovery in their operational metrics in the last few quarters. An analysis from ICRA reports that almost every single retail division has reached the pre-covid levels in Q3 FY2022 and surpassed the pre-covid trading values in Q4 FY2022. The Q3 Fy2022 is also indicating that shopping malls are touching the footfall mark of pre-Covid levels. The rental income improvement has also seen a surge of 74% (Q2 FY2022).
This indeed is a very encouraging update for the industry which is still recovering from the pandemic debacle. On a samestore basis, the rental income is expected to increase by around 30% in FY2023 and is likely to surpass FY2020 levels by around 4%-6%. With the normalcy in the trading values, the occupancy is expected to improve in FY2023.
The August edition of the Shopping Centre News discusses the EOSS in shopping malls pan India. The EOSS held in July clocked about 123% of sales growth as compared to the corresponding period in 2019. These EOSS apart from adding footfalls to the shop heavily contribute to the revenue and improve the top line. The feature emphasises on marketing gimmicks, trends and campaigns conducted by the shopping malls.
We will be hosting the third edition of ‘Phygital Retail Convention: INDIA Bharat – Exploring the World’s Biggest Consumer Story’ at Hotel Westin, Mumbai on August 24-25, 2022. We hope to see you there in large numbers.
As always, we hope to find this issue informative and useful. Log on to https:// www.indiaretailing.com/category/ shoppingcentre for more features, analyses and opinions.