Apparel, F&B Account for 54% of Total Retail
Leasing in H1 2025 in Top 7 Cities
- Of net retail absorption of over 2 Mn sq. ft.
across top 7 cities in H1 2025, apparel brands leased nearly 33% and
F&B leased 21%; entertainment zones leased 16%, home & lifestyle
brands 11%
- Beauty & wellness, F&B, sports, and
jewellery gaining major traction in malls on the back of high-value
consumption trend
- Jewellery held a 2% leasing share in FY19 which
rose to 5% in FY25, projected to reach 13% in FY30
- E-commerce impact - despite currently having
maximum share, apparel leasing declining - from 42% in FY19 to 37% in
FY25, projected to reach 32% by FY30
- Conversely, F&B leasing share increased from
8% in FY19 to 12% in FY25, to touch 16% in FY30
Mumbai, 24 July 2025: Millennials, Gen Z and Gen Alpha are reshaping
India's retail landscape with what they value and expect from the brands they
patronize. Convenience rules the roost with the rise of online shopping and
quick commerce.
Amid these changing consumer dynamics,
retail brands are re-strategizing their expansion - latest ANAROCK research
finds that apparel and F&B together now represent 54% of total retail
leasing (approx. 2 Mn sq. ft.) in H1 2025 across the top 7 cities, against 37%
in 2023.
Anuj Kejriwal, CEO & MD - ANAROCK
Retail, says, "Individually, the leasing
share of apparel - currently the top leasing category - has declined from 42%
in FY19 to 37% in FY25, and is expected to fall further to 32% by FY30.
F&B, on the other hand, saw its leasing share increasing from 8% in FY19 to
12% in FY25, with projections to rise further to 16% in FY30."
Apparel brands' drop in leasing share
tracks that of other value-buy categories like hypermarkets. They face stiff
competition from e-commerce which is further compounded by the growing traction
of quick commerce.
Contrastingly, backed by changing
consumer preferences, categories of high-value consumption like beauty and
wellness, F&B, sports, and jewellery have been gaining traction across
malls in the last few years. "From a very modest 2% leasing share back in
FY19, jewellery segment leasing saw its share rise to 5% in FY25, with
projections to reach 13% in FY30," says Kejriwal.
Of net retail absorption of over 2 Mn
sq. ft. across the top 7 cities in H1 2025, nearly 33% was leased by apparel
brands, 21% by F&B brands, 16% by entertainment zones, and 11% by home
& lifestyle brands.
Source: Market
data, ANAROCK Research
Paradigm Shift
The data clearly shows how Indian retail
is realigning to today’s customers' habits and preferences. While previous
generations valued brand loyalty, reliability, and word-of-mouth
recommendations, millennials and Gen Z value convenience, personalization, and
emotional connection more.
"We can see an unequivocal
preference for quick, customized, valuable experiences clearly influenced by
digital platforms and social media," says Kejriwal. "This change is
pushing retail beyond traditional stores to tech-enabled, customer-focused
formats. The aspirations of today's tech-savvy, fast-paced consumers is the key
to retail success now."
As AI, automation, and sustainability
imperatives revolutionize our world, retailers and retail stores need to do
more than just sell. They need to give meaningful connection, flexibility, and
alignment with what today's customers believe in, and expect.
