Panel Discussion - Emerging Trends in Retail Spaces

5 Feb 2014

Rohit George, Principal, Xander Advisors India

Challenges in Retail Spaces

“To cut down the occupancy cost, something has to be done with electricity cost. There should be more effective use of

open spaces” –

Shubhranshu Pani, JLL

Small retailers are leveraging the ecommerce market place as sometimes the omni- channel

model doesn’t justify the cost for them.

The challenge lies in finding retailers with right productivity mix - who can be a part of the success story of modern retail

environment. Unless this productivity increases they

cannot match with high cost of

real estate.

What type of environment can help pull in customers?

“As far as design part is concerned, a mall space has to be segregated innovatively. Create zones wherein the brands get effective

visibility” –

Ramesh Sanka, DLF Gurgaon

Revenue sharing model is one way by which real estate developers can to some extent lighten the burden of retailers

• Right Infrastructure and accessibility

• Design a mall such that all requirements of a user are fulfilled under one roof at a time

Besides shopping facilities foods and entertainment is very important. 15-

20% of space should be dedicated to food, whereas internationally it’s 25%,

and 20-25% should be given for entertainment.

What makes a good retail space? How does that definition change across emerging markets?

“Many categories don’t find space in malls – because they are not enough of them (at a category level) to sustain the market price for that category. There’s a lack in depth of categories. Unless this problem is solved, retail spaces will

continue to be expensive ” –

Vivek Kaul, CBRE

The revenue sharing model creates a trust and

transparency between a retailer and real estate

developer. Malls nowadays are built keeping in mind the primary purpose of pulling in

customers. It’s not just a mere retail space. Mall developers have realized that there’s a

need for creating such environment

Cost of Real Estate

“5-20% is par - for real estate cost – for all retailers in the country” –

Amitabh Taneja, IMAGES Group

Retailing is spreading to new spaces - emerging cities, emerging suburbs / townships in cities, and to

rural / semi rural areas.

What makes a good Brick and Mortar retail mall and how retailers can create sustainable communities in the suburbs where they are present?

Rohit George, Principal, Xander Advisors India

“Market research is very important which provides insights in to catchment, market demography, etc to create the right

environment” –

Rohit George, Xander Advisors India

Adding an e-commerce platform in a mall will have an extra edge

with stores and distribution centers made available on the

platform

Tourism attraction can be developed around shopping festivals with local

flavors