NEW RETAIL

FRONTIERS: EMERGING
MAIN STREETS IN INDIA
A Cushman & Wakefield Research Publication

2014

Table of Contents

EXECUTIVE SUMMARY

WHAT IS AN EMERGING MAIN STREET?

DRIVERS FOR EMERGING MAIN STREETS

KEY EMERGING MAIN STREETS

ANALYSING RETAIL DYNAMICS IN

EMERGING MAIN STREETS

20

OUTLOOK FOR THESE

EMERGING MAIN STREETS

14

NEW RETAIL
FRONTIERS

EXECUTIVE SUMMARY
Indian retail destinations are undergoing a metamorphosis;
established malls and main streets are becoming more
sophisticated as shopping destinations and a number of new
locations are emerging. This report delves into the potential of
such upcoming, new retail catchments and analyses each one
from a 360 degree view point. In our report, we have taken into
account the seven major cities of Mumbai, Delhi-NCR, Bengaluru,
Chennai, Kolkata, Pune and Hyderabad.
The most natural reason for the emergence of new retail micro
markets is that Indian cities are now overflowing at helms,
leading to creation of new residential catchment areas. Retail
malls and main streets are perhaps the leading parameters of
social infrastructure. In a sense, this reflects the increasing
financial wherewithal of Indian consumers and their willingness
to make purchases. That said, there is no one-size-fits-all strategy
that works. Each micro market attracts a unique class of
shoppers and the main challenge of retailers is to tailormake
product mixes in order to best cater to the demand of the
consumers. For instance, High Street Phoenix in Lower Parel,
Mumbai and Phoenix Market City in Kurla, Mumbai are not and
could not be a replication of each other. Whilst the micro
market of Lower Parel can draw luxury shoppers, Kurla is
unlikely to. As is true for most real estate related business
decisions, location holds the key; structuring a business model
synchronized to the expected footfalls will be the deciding factor
of success or failure.

foreign brands occupy insignificant space in emerging main streets

compared to domestic brands. Select main streets such as
Dwarka (Ashirwad Chowk) in Delhi NCR, NSC Bose Road in
Kolkata, and HSR Layout and Sahakar Nagar in Bengaluru have
witnessed sizeable penetration of foreign brands (above 20%
occupancy) reflecting the tastes of the catchment and the quality
of supply present here. However, main streets such as Kothapet in
Hyderabad, Kharadi in Pune and Ambattur (MTH Road) in
Chennai witnessed lesser levels of penetration from foreign
retailers. Another interesting fact is that across the main streets,
apparel and footwear brands had maximum penetration by area,
followed by the food and beverages (F&B) brands, alluding to
consumer preference when it comes to retail segments.
Emerging retail locations definitely have a cost advantage. On an
average, we estimate that rentals are 20-30% lower in these micro
markets when compared to established retail locations. Currently
Dwarka (Ashirwad Chowk) in Delhi-NCR commands the highest
main street retail rental, while Kothapet in Hyderabad commands
the lowest main street retail rental amongst the 14 new emerging
main streets.
The main factor that will drive growth potential is consumer
purchasing power and hence, a stable and confident job market is
essential. India is just coming out of a tepid job growth scenario,
which has eroded consumer confidence significantly. As Indias
macroeconomic statistics improve, people will feel more
comfortable and shop beyond their basic needs. Economic
indicators are now positive and retailers should identify and
establish bases in high-growth emerging locations and (in some
cases) benefit from first-mover advantages.

A specific interesting trend that we came across is that despite

global interest and international retail brands flocking to India,

2014

WHAT IS AN EMERGING MAIN

STREET?
Main streets initially develop in and around city nodes such as
near transport hubs, railway stations or at the heart of the city.
As the city expands its precincts, far-flung residential areas start
developing a mixed-use fabric along the streets. Select streets
start emerging and witness progressively higher footfalls, which
then lead to concentrated retail development along these
avenues. This report takes a look at such new and emerging main
streets that have evolved in recent years due to the development
of new residential pockets or densification of certain areas.

For the purpose of the study, we have concentrated on seven

major cities of Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai,
Delhi-NCR and Pune. These major cities are reeling under severe
urbanization pressures and their geographical limits are being
redrawn and extended to encompass the surging settlements. Two
new main streets, which have witnessed maximum activity level in
terms of enquiries and retail real estate transactions in last couple
of years, have been chosen from each of these cities for the study.
Post-conducting an extensive demand-supply analysis, we have
zeroed in on these new emerging main streets and will discuss
their characteristics and potential in the following sections.

NEW RETAIL
FRONTIERS

DRIVERS FOR EMERGING MAIN

STREETS

for shoppers, which has been difficult to cater to in established

main streets. Consequently, new retail streets that are easily
accessible through various means of transport have good
potential to mature into established main streets.

INCREASING ORGANISED RETAIL

DRIVERS FOR EMERGING MAIN STREETS
Main streets have traditionally evolved as a communal hub, where
a wide variety of local shops are present in the prime locations.
Today, chaotic main street shopping co-exists with organised,
hassle-free and convenient mode of shopping in malls. Indian
consumers are also exploring different retail avenues such as
online shopping with home delivery options and click and collect
centres. Though the share of these alternative formats is slowly
increasing in India, shopping destinations such as main streets and
malls maintain their appeal as new locations emerge. The major
drivers facilitating the emergence of new main streets are:

URBAN SPRAWL
Rapid urbanization and population explosion in India have led to
the emergence of new suburbs and satellite towns with alternate
commercial areas, around which, new retail neighbourhoods have
developed. Alternative retail options have started sprouting in
these far-flung locations in order to reduce the dependence of
residents on established retail hubs situated at the heart of the
city. As populations in the city are increasing through natural
growth and migration, retailers are increasingly looking at setting
up their outlets as close as possible to their consumers in order
to ensure that their markets expand. Whilst it is usually the local
and unorganised retailers who try and capitalise on the first
mover advantage in new and emerging retail locations, organised
retailers lead the pack in setting up outlets, typically belonging in
the food and beverages (F&B), mid-range fashion and accessories.

TRANSPORT AND ACCESSIBILITY

Increasing congestion in established retail destinations has
resulted in increasing the travel time and well as the travel cost
for fuel, parking, etc. Further, increased car ownership has
resulted in an increase in demand for adequate parking facilities

As the retail sector is increasingly getting organised through the

entry and expansion of organised retail players and retail real
estate developers, new retail markets are emerging across cities.
Organised retailers are not only setting up shop in traditional
retail markets, but are also seeking new emerging markets in
order to widen their buyer base. Further, unorganised retailers
are shifting from established retail markets as they are being
squeezed out by the organised retailers who pay higher rents.
Initially in the first 2 to 3 years, new main streets are dominated
by mom and pop stores, local tailoring, hardware, home
improvement, F&B and other stores as rents and capital values are
cheaper and organised players are not willing to take on the high
risks associated with these emerging new markets. However, as
these markets gain traction in terms of increasing consumer base
and availability of quality real estate options, organised players
(usually in the mid segment) start setting up shop.

HIGH AVERAGE TRADING DENSITIES

The final yardstick of success of any retail outlet is the
profitability that retailers can expect in the retail destination.
Most brands have a set format for a retail store that includes the
size of the store, expected frontage, building quality, store
interiors (design and materials), etc. Thus, the fit-out costs are
standardized over all locations and the initial capital expenditure
is in similar range across the cities for a particular brand. As the
product pricing is also same across the country, the profitability of
a store is usually affected by the ratio of the average trading
density or the revenue earned to rent paid. Emerging main streets
are competing with established main streets by offering much
lower rentals and increasing revenue generating footfalls, which
make these locations pretty lucrative for brands.

2014

KEY EMERGING MAIN STREETS

Various market forces guide the development of new main
streets, each of which, witnesses a unique combination of growth
factors and hindrances or bottlenecks. In this section, we have
attempted to outline various market forces, which have shaped
the current retail landscape in the emerging main streets of the
seven cities under study.

NEW RETAIL
FRONTIERS

BENGALURU
RMZ Galleria Mall
Elements Mall

Sahakarnagar

Bellary

Road

Tum
kur R
oad
Vaishnavi Mall
Sampige Road,
Malleswaram
Brigade Orion
Magadi Road

Kamanahalli Main Road

The Collection
Lido Mall
Mall
Vittal Mallya
EVA Mall
Road
Indiranagar
MG Road
The Collection
100ft Road
Mall
Galaxy Mall
Koramangala
80 ft Road
Jayanagar
4th Block, 11th Main

ad
Ro

Brigade Mall

Kam
anah
alli M
ain
New Bel Road
Roa
d
Commercial Street

Phoenix
Market City

IMG Road Mall

Mantri Square

ad Gopalan Mall
Ro
re
o
s
My

s
dra
Ma
Old

Forum
Shantiniketan Mall

Total
Mall

Gopalan Mall

Park Square Mall

Cosmos Mall

Virginia Mall

Old Airport Road

Forum Value Mall
Marathalli Junction

Cosmos Mall

Central Mall
The Forum Mall
Total Mall

Royal Meenakshi Mall

HSR Layout
Sar

japu
rR
oad

Unitech Garden
Galleria Mall

d
oa
rR
su
Ho

d
oa
aR
r
u
kp
na
Ka

Under construction
Metro Rail network

Completed
Metro Rail network

Operational Mall

Under Construction Mall

Road Network

Emerging Retail
Submarkets

NEO Mall

Emerging Retail Main

Streets Catchment
Established Retail
Submarkets

HSR Layout (27th Main)

Sahakar Nagar

Located between Hosur Road and Sarjapur Road, two main

arteries of the city, HSR Layout 27th Main Street emerged as a
retail main street due to the residential pockets that have
mushroomed in HSR Layout because of the growth of IT-ITeS
hubs in Electronic City and along the south-eastern part of
Outer Ring Road. The residential catchment for this main street
includes Sarjapur Road, Jakkasandara, Hosur Road and the Outer
Ring Road (ORR) stretch near Sarjapur-ORR Junction. The lack
of malls and retail locations within a 5 kilometre radius and the
presence of a prominent educational institute - the National
Institute of Fashion Technology, have also acted as vital catalysts
for the emergence of this location. Further, the proposed metro
connectivity is expected to make this location more attractive in
future.

Formed as a co-operative housing society for government

employees, Sahakar Nagar today enjoys the benefit of being the
sole retail destination between Hebbal located about 3 kms away
and the Bengaluru International Airport (27 kms away). Since
limited retail space is present in northern Bengaluru, Sahakar
Nagar also caters to a large cosmopolitan population from
Hebbal,Yelahanka, Thanisandara Road, Jakkur and Jalahalli. The
demographic profile of the catchment consists of not only
employees from IT-ITeS industries in North Bengaluru, but also
from large number of employees working at the international
airport. The anticipated malls in Thanisandra Road and Yelahanka
will further boost the retail activity in north Bengaluru.

2014

CHENNAI

Ambattur (MTH

RD)

New
Av
nd

Anna Nagar 2 Avenue

Purusvakam High Road

adi R
oad

Ampa Skywalk

oad
igh R
llee H
a
m
a
Poon
Chandra Mall

Spencers Plaza
Nungambakkam High Road
New BergamoMall
Khadar Nawaz Khan Road
Usman Road North

Prestige Forum
Mall

Express Avenue Mall

Cathedral
Road

Ramee Mall
Pondy
Bazar

Usman Road
South

City Center

Adyar Main Road

Velachery

Sa
lai

Phoenix
Market City

ECR

hi

PS Grand Mall

Coromandel Plaza

ECR

Ra

jiv

Ga

nd

rn
uthe
d So
Gran

ad
k Ro
Trun

Under construction
Metro Rail network

Road Network

Emerging Retail Main

Streets Catchment

Operational Mall

Emerging Retail
Submarkets

Established Retail
Submarkets

Chennai Suburban
Rail Network

Ambattur (MTH Road)

ECR

MTH Road, passing through Ambattur before merging with the

Chennai Bypass, has witnessed the establishment of several retail
outlets in the last 2-3 years due to its proximity to densely
populated residential neighbourhoods of Mogappair, Anna Nagar
West, Nolumbur and Padi and its proximity to the Ambattur
Industrial Estate. With many IT parks and commercial buildings
coming up, the industrial estate has transformed over the last few
years and is attracting mammoth real estate development in the
vicinity. Planned infrastructure upgrades such as widening of the
MTH Road stretch in Ambattur can further provide an impetus
for retail stores seeking a first movers advantage in this emerging
main street.

The interplay of two major forces easy accessibility and

increasing urban sprawl gave momentum to retailers presence on
the East Coast Road in the stretch from Thiruvanmiyur to
Neelangarai, transforming it into an upcoming retail main street.
This main street is close to both Adyar and Rajiv Gandhi Salai and
is easily accessible by road. The presence of the Thiruvanmiyur bus
terminus and the Thiruvanmiyur MRTS Station attracts sizeable
shopping population from other suburbs such as Velachery. ECR
caters to the large residential catchment of Kottivakkam,
Pallavakkam, Thiruvanmiyur and some neighbourhoods of Besant
Nagar and Rajiv Gandhi Salai (up to Shollinganallur).

NEW RETAIL
FRONTIERS

DELHI-NCR

Karol Bagh
Pratham
Mall

Janakpuri
Delhi
Ashirwad Chowk

Basant
Lok
Dlf Emporio

IGI Airport

DLF Promenade
-8

DLF Ambience

MGF
Metropolit an
Athena
Mall

Sector 14
Gurgaon

Sahara Mall
DT City
Centre

Appu Ghar

DLF Mega Mall

DLF
Galleria
Gold Souk Mall

Raheja Mall

ad
Ro

Omaxe Celebration Mall

rse
ou
lf C
Go

St ar Mall

oad
aon R
-Gurg
li
u
a
r
Meh

Gu
rga
onF

arid
aba
dR
oad

Jmd Galleria
Sohna Road

Omaxe City Centre

Gurgaon Omaxe Mall

Under construction
Metro Rail network

Road Network

Emerging Retail Main

Streets Catchment

Operational Mall

Under Construction Mall

Emerging Retail
Submarkets

Existing Metro
Rail network
Established Retail
Submarkets

Dwarka (Ashirwad Chowk)

Sohna Road

The planned development of Dwarka as a satellite city in Southwest Delhi, located in close proximity to both Delhi and
Gurgaon, has been the driving force behind the emergence of
Ashirwad Chowk as a retail main street. Good quality
infrastructure in the form of wide roads, metro stations,
educational institutions and several branded hotel chains have
transformed Dwarka into a cosmopolitan hub. Since Ashirwad
Chowk is located at the intersection of 6 streets, connecting
Sectors 4, 5, 11 and 12, it also witnesses footfalls from nearby
Sectors such as Sectors 6, 9, 10 and 13 amongst others.

With its massive IT clusters and increasing population, Gurgaon is

expanding horizontally. Sohna Road, a burgeoning residential
location for mainly the mid-income population is witnessing rapid
development of new residential projects, with nearly 10,000 units
currently under construction to meet the growing housing
demands. Supporting infrastructure such as schools and hospitals
between Netaji Subhash Chandra Chowk and the Golf Course
Extension Road crossing have made this a sought after residential
area. Due to lower rentals on this main street compared to
other prominent retail destinations in Gurgaon, this main street
has attracted many retailers belonging to apparels, fitness and F&B
segments. Reconstruction and widening of this stretch have also
stimulated the retail growth on this main street.

2014

HYDERABAD

Chanda Nagar
GSM Infra Mall

Mum

bai H

ighw

Maruthi Mall

ay NSL Centrum Mall

Manjeera Mall
Kukatpally

City Capital Mall

Ne
w

A.S. Rao Nagar

Forum Sujana Mall

Madhapur

Mu
mb

Jubilee Hills

ai
Ro
ad

S.P. Road/ Begumpet

Hyderabad Central

Hitech City

Punjagutta

Ameerpet

M.G. Road

Inorbit Mall
City Capital Mall

DSL Mall

Raj Bhavan Road

GVK Mall
Prasads Mall

Banjara Hills

MPM Bonsai Mall

Himayatnagar

Uppal
WarangalHyderabad Road

Abids

Kothapet

Road

Ro
ad

Dilsu
khnag
ar Ma
in

Zo
o

Pa
rk

M
ain

Dilsukhnagar

Under construction
Metro Rail network
Under Construction Mall

Road Network

Emerging Retail Main

Streets Catchment

Emerging Retail
Submarkets

Operational Mall

Established Retail
Submarkets

Chanda Nagar

Kothapet

The development of dense residential clusters such as the BHEL

Township, Miyapur and Medinigud around Chanda Nagar is the
driving force behind the emergence of retail establishments on
this main street. Social infrastructure such as hospitals and
schools located in the vicinity of Chanda Nagar render support
to the local population and help in the creation of this retail hub.
Going forward, the planned Miyapur Metro depot will boost the
growth of Chanda Nagar main street. Further, two new malls in
the next two years in Chanda Nagar may boost this location as a
major retail hub.

Kothapet has emerged an organized retail stretch in the last 2-3

years due to its proximity to Dilsukh Nagar, which is one of the
oldest commercial hubs. Traditionally popular as a farmers market,
the arrival of companies such as Aditya Birla's More, coupled with
domestic apparels retailers, local department stores and
supermarkets has transformed this extension of Dilsukh Nagar
into a sought after retail location. Kothapet caters to the
residential populations of Saroor Nagar, Green Hills,
Chaitanyapuri and Gayatripuram Colony amongst others. Due to
the proposed metro connectivity, the Kothapet retail main street
will develop further drawing more footfalls.

NEW RETAIL
FRONTIERS

KOLKATA
Belghoria Expressway
Airport
Diamond Plaza
Forum Rangoli Mall

GT
Ro
ad

Ko
na
Ex
pre
ssw
ay

City Centre 2
VIP Road

Kankurgachi
City Centre

Avani Riverside Mall

Vid
yas
aga
rS
etu

EM Bypass

Mani Square Mall

Theatre Road

Park Street
Camac Street

Elgin Road
Forum Mall
Lake Mall
Diamond Harbour
Road

S.P. Mukherhee

Genexx Valley Mall

Park Circus Connector

Quest Mall

Acropolis
Gariahat

South City Mall

NS
C
Bo
se

Rashbehari Connector

Prince Anwar Shah

Connector

Ro
ad

Metropolis Mall

DH
Roa
d

Road

Axis Mall

Under construction
Metro Rail network

Road Network

Emerging Retail Main

Streets Catchment

Kolkata Suburban
Rail Network

Under Construction Mall

Operational Mall

Emerging Retail
Submarkets

Established Retail
Submarkets

Diamond Harbour Road

NSC Bose Road

Located in the southern suburbs of Kolkata, Diamond Harbour

Road (Behala to Joka stretch) is fast emerging into a retail main
street in the wake of increasing residential penetration. Due to
the development of mini townships and high rises in the nearby
localities of Behala, New Alipore and Mahesthala, this retail main
street emerged to serve the needs of the increasing residential
activity. Development of residential complexes near industrial
areas such as Taratala also serve as a catchment for this main
street where apparels, jewellery, electronics and F&B segments
have witnessed good demand from consumers. The ongoing
construction of the metro corridor (Joka-BBD Bagh) is the major
infrastructural work that can impact this location.

Situated in the middle of two of the busiest localities in Kolkata

Tollygunge (South) and Garia (South Peripheral), NSC Bose Road
is one of the busiest roads in the city. Organized retail
establishments have started mushrooming in the vicinity as it
connects two major transport hubs. While Tollygunge serves as
the terminal for several transport services such as trams, buses,
and metro, Garia has a couple of bus terminuses serving major
routes in the city. Enhanced mobility by these transport nodes is
the major driving force, which has propelled retailers to explore
NSC Bose Road as a retail avenue. Old residential colonies along
NSC Bose Road, along with high density residential pockets of
Tollygunge and Garia are the residential catchments for this main
street. The infusion of large quantity of good quality retail space,
which is currently under construction will further provide a fillip
to this location.
9

2014

MUMBAI

w
igh
dH
aba
ed
hm
ai A
mb
Mu

Vasai

ay

Dattani Square Mall

R Mall

Western Express Highway

Borivali

Thane

Viviana Mall
Eastern Express Highway

Nirmal
Lifestyle

Infiniti Ii
Malad

Korum Mall

Mulund

Goregaon

Inorbit
Malad
Airoli

Oberoi Mall
JVLR
Bhandup

Magnet
Mall

Ghatkopar
Andheri
Infiniti

Chhatrapati Shivaji
International Airport

Kurla

R City Mall
Inorbit Vashi

Phoenix
Market City

Raghuleela Mall
Vashi
Centre
One

Bandra

Chembur
Seawoods Grand Central
Phoenix Mills
Navi Mumbai International
Airport (Proposed)

H
Sion Panvel

Kemps Corner

ighway

East
ern
Free
way

Lower Parel

Fort

Colaba

Under construction
Mono Rail
Under Construction Mall

10

Completed Mono Rail

Operational Mall

Road Network

Emerging Retail Main

Streets Catchment

Emerging Retail
Submarkets

Mumbai Suburban
Rail Network
Established Retail
Submarkets

NEW RETAIL
FRONTIERS

Ambadi Road
Due to its proximity to the Western suburbs and lower
residential prices compared to other Mumbai suburbs,Vasai has
emerged as a favourable residential market for the mid-income
earning population. To serve the needs of the large population
residing in Vasai, Ambadi Road has emerged as a preferred retail
destination. It is close to the suburban railway station, which
provides easy access to this main street. Due to the proximity of
the railway station and high density residential catchment,
Ambadi Road holds a lot of potential.

sprawling IT parks and IT SEZs, such as Mindspace on the ThaneBelapur Road (near Airoli Railway Station) have led to a large
floating population visiting the location; in turn, this has given a
boost to main street retail. The office space in Airoli and ThaneBelapur Road is expected to increase by 50% of the current stock
in the next two years, which will give a fillip to main street retail
in Sectors 4 and 8 where enquiries from F&B, electronics and
apparels segments is high. Sectors 6, 9, 14 and 16 in Airoli are the
residential areas near this main street, which consist primarily of a
young working population.

Airoli (Sectors 4 & 8)

The growth of Airoli as an IT-ITeS hub has had a cascading effect
on main street retail of Sectors 4 and 8 in recent years. The

11

2014

PUNE
Pune-nashik Highway

Prime Mall

Old

Old Mumbai Pune

Highway - PCMC

une
ai-p
mb
Mu
hw
ay

Spot 18 Mall

Blueridge Mall

ad
Alandi Ro

Hig

Xion Mall

Pimple Saudagar

d
Roa
gar
Na

East Court

Aundh

ad
Ro
ty
rsi
ive
Un

h
ad (n
ss Ro
Bypa
une
bai P
Mum

Westend Mall

Phoenix Market
City
Inorbit Mall

Kharadi

Ishanya
Mariplex
Koregaon Park

4)

Kakade
Center
Port

Koregaon Park Plaza

Nucleus Mall

F.C. Road

Bund Garden Road

SGS Mall

Poud Road
d
Roa
lshi
Mu

J.M. Road

Satara Road

Emerging Retail
Submarkets

Amanora Town
Centre

Pune-solapur Highway
oad
ve R
Kar

Road Network

Seasons Mall

M.G. Road
Kumar Pacific

Emerging Retail Main

Streets Catchment

Operational Mall

Under Construction Mall

Established Retail
Submarkets

Pimple Saudagar

Kharadi

The metamorphosis of Pimple Saudagar as a self- sustaining

suburb of Pune with increasing retail activity is attributed to the
increasing population of young IT-ITeS professionals employed in
the IT hub of Hinjewadi. The absence of other established main
streets near Pimple Saudagar has proved to be a boon for
retailers looking to set shop here as the nearest main street is at
least 6 kms away from this location. An upcoming shopping mall
in the location will add to this retail markets growth in the near
future.

Kharadi has emerged as a new commercial office hub and retail

main street due to its proximity to upmarket residential
addresses in Pune. Located adjacent to established micro markets
such as Kalyani Nagar and Viman Nagar, where residential real
estate is quite expensive, Kharadi is considered to be suitable for
the mid-income population. Further, the IT-ITeS focused Special
Economic Zones have led to its transformation as a fast growing
locality. The presence of as many as four shopping malls within a
distance of 2-3 kms have already set the tone for organised retail
in this location.

12

NEW RETAIL
FRONTIERS

Demand Drivers for the Emergence of New Main Streets

City

Emerging Main Street

Bengaluru

HSR Layout (27th Main)

Urban Sprawl

Accessibility

Proximity to Business
District

Availability of Quality
Retail Spaces

Sahakar Nagar

Chennai

Ambattur (MTH Road)

ECR

Delhi-NCR

Dwarka (Ashirwad Chowk)

Sohna Road

Hyderabad

Chanda Nagar

Kothapet

Kolkata

Diamond Harbour Road

NSC Bose Road

Mumbai

Ambadi Road

Airoli (Sectors 4 & 8)

Pune

Pimple Saudagar

Kharadi

Strongest Driving Force

Stronger Driving Force

Strong Driving Force

Weak Driving Force

13

2014

ANALYSING RETAIL DYNAMICS

IN EMERGING MAIN STREETS
PRESENCE OF DOMESTIC AND FOREIGN BRANDS
Presence of Foreign and Domestic Brands
99%

93%
77%

Chennai

Delhi-NCR

Hyderabad

Foreign Brands (%)

Emerging main streets across the seven major Indian cities have
witnessed a dominance of domestic brands as compared to
foreign brands. Ashirwad Chowk in Delhi NCR, NSC Bose Road
in Kolkata and HSR Layout and Sahakar Nagar in Bengaluru have
recorded the highest share of foreign brands, each recording
more than 20% of total space absorbed by foreign brands. The
presence of foreign brands is significantly lower in all other
emerging main streets attributed to factors such as demography,
disposable income, easy accessibility and quality of retail space
available that are considered unfavourable by foreign retailers but
are not a deterrent to domestic ones.

14

89%

Kolkata

Domestic Brands (%)

Pimple Saudagar

Airoli (Sectors 4 & 8)

NSC Bose Road

Ambadi Road
Mumbai

11%

7%

Kharadi

11%

11%

1%
Diamond Harbour Road

Ashirwad Chowk, Dwarka

Ambattur (MTH Road)

ECR

Sahakar Nagar

HSR Layout (27th Main)

Bengaluru

16%

10%

8%

7%

93%

29%

23%

17%

89%

71%

Kothapet

23%

20%

89%

84%

Chanda Nagar

77%

83%

90%

Sohna Road

80%

92%

Pune

NEW RETAIL
FRONTIERS

Major Brands Present across 14 Emerging Main Streets

MUMBAI

DELHI-NCR

PUNE

KOLKATA

BENGALURU

HYDERABAD

CHENNAI

15

2014

SEGMENT MIX ACROSS EMERGING MAIN STREETS

Emerging main streets across the top seven cities have witnessed
mixed trends. Whilst some streets have emerged as a F&B hub,
others have emerged as apparels and footwear hubs, but almost
all segments are present across all main streets. Apparels and
footwear were noted as the most demanded retail segment and
constituted 24% of the total retail space taken up across cities,
followed by F&B accounting for 16% of the total space taken up.
The above two segments satisfy the basic needs of the residents

and so, in each of these main streets the space take-up of these
segments is the highest. The lowest percentage of space was taken
up retailers in the segments of Clinic / Pharmacy (3%), Salon & Spa
(4%) and Automobile and Mom & Pop stores stood at 6% each.
Except automobiles, most of these segments have small space
requirements and so the entire space take-up is small. Further
scope of each of these segment in each of the 14 emerging main
streets can be gauged through the graphs below:

Percentage Spread of Various Retail Categories (Bengaluru)

40%

30%

20%

10%

0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic /
Pharmacy

Home
Improvement

HSR Layout (27th Main)

Departmental Supermarket
Store

Mom & Pop

Store

Others

Salon & Spa

Others

Salon & Spa

Sahakar Nagar

Percentage Spread of Various Retail Categories (Chennai)

30%

20%

10%

0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic /
Pharmacy

Home
Departmental
Improvement
Store

Ambattur (MTH Road)

16

ECR

Supermarket Mom & Pop

Store

NEW RETAIL
FRONTIERS

Percentage Spread of Various Retail Categories (Delhi-NCR)

40%

30%

20%

10%

0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic /
Pharmacy

Home
Departmental Supermarket
Improvement
Store

Dwarka (Ashirwad Chowk)

Mom & Pop

Store

Others

Salon & Spa

Sohna Road

Percentage Spread of Various Retail Categories (Hyderabad)

40%

30%

20%

10%

0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic /
Pharmacy
Chanda Nagar

Home
Improvement

Departmental
Store

Supermarket

Mom & Pop

Store

Others

Kothapet

Percentage Spread of Various Retail Categories (Kolkata)

50%
40%
30%
20%
10%
0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic / Pharmacy

Diamond Harbour Road

Home
Improvement

Departmental
Store

Supermarket

Others

NSC Bose Road

17

2014

Percentage Spread of Various Retail Categories (Mumbai)

50%
40%
30%
20%
10%
0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic / Pharmacy

Airoli (Sectors 4 & 8)

Home
Improvement

Mom & Pop Store

Others

Salon & Spa

Ambali Road

Percentage Spread of Various Retail Categories (Pune)

30%

20%

10%

0%
Apparels &
Footwear

Automobiles

F&B

Electronics

Clinic /
Pharmacy

Kharadi

18

Home
Departmental Supermarket Mom & Pop
Improvement
Store
Store

Pimple Saudagar

Others

Salon & Spa

NEW RETAIL
FRONTIERS

RENTAL MOVEMENT IN NEW EMERGING MAIN STREETS IN LAST 2 YEARS

Main Street Rentals and their Growth in last 2 years
600

80
70

500

Rents (INR/sf)

50

300

40
30

200

Rental Growth (%)

60
400

20
100

10
0

Bengaluru

Chennai

Delhi-NCR

Hyderabad

Rent (INR/sf)

Kolkata

Mumbai

Pimple Saudagar

Kharadi

Ambadi Road

Airoli (Sectors 4 & 8)

NSC Bose Road

Diamond Harbour Road

Kothapet

Chanda Nagar

Sohna Road

Dwarka (Ashirwad Chowk)

ECR

Ambattur (MTH Road)

Sahakar Nagar

HSR Layout (27th Main)

Pune

% Rental Growth (in 2 years)

Emerging main streets typically quote at least 20-30% lower

rentals than established main streets across the cities. All
emerging main streets have witnessed an upswing in rentals in
the past two years as demand for spaces in these locations has
been increasing steadily. Dwarka (Ashirwad Chowk) is the only
emerging retail location to command a notably high rental.
Kothapet in Hyderabad recorded the lowest rentals as well as
the lowest rental upside of 4% in the last two years, mostly due
to high availability of spaces.
Limited availability of good quality retail spaces has led to a steep
rise in rentals over the last 2 years as many mid segment brands
are increasingly expanding to these locations. HSR Layout 27th
Main and Sahakar Nagar in Bengaluru have each witnessed a
robust 70% rental growth since 2012; however, the rental growth
has been from a smaller base and hence, these markets are still
attractive. Further, landlords in new main streets are usually more
flexible in terms of deposit and lease terms, which translates into
better cost-effectiveness for retailers even if rentals increase in
future on account of high demand.

19

2014

OUTLOOK FOR THESE

EMERGING MAIN STREETS
Until two years ago, the allowance of FDI in single-brand retail
and multi-brand retail were two major policies that boosted
growth of the retail sector and also demand for quality real
estate spaces. However, the relatively slower economic growth of
the country over the last two years (2012-2014) resulted in
sluggish demand in the retail sector and also led to deferment of
malls and other retail spaces. The retail sector as such has not
witnessed any policy announcements to boost its growth. Whilst
there is huge potential for organized retail in India, retailers are
awaiting conducive conditions to expand their operations.
Macroeconomic conditions need to improve further to
encourage consumer spending and the Government needs to
address the uncertainty that exists with respect to its policy
stand on FDI in multi-brand retail. The overall infrastructure to
support retail trade such as transportation and logistics too
needs to improve substantially for the sector to graduate to its
next phase of growth.
Emerging main streets have the potential to help retailers meet
some of their growth targets. As consumers are forced to move

to new suburbs and peripheral locations, they will find it

increasingly difficult to commute to the established retail hubs.
Given the time constraints in the busy modern life, convenience
and ease of shopping is fast becoming the single most important
factor for a consumer. This is also a major contributor to the
fast-paced growth of the e-retail market in India, which will not
however, impact the growth potential of brick and mortar retail
businesses.
Meanwhile, organised retailers have been focussing on quality
spaces only, which has witnessed inconsistent supply since the
past two years, thus limiting their growth strategies. The
emergence of new main streets not only can help retailers tap a
large consumer base that now resides in new suburbs and
peripheral areas but also create a semi-urban consumer base.
The semi-urban consumers are increasingly becoming more
demanding in their shopping choices and showing a higher
propensity to spend than urban consumers.
Our report has already highlighted some of the most prominent
emerging main streets in India. These have already gained
substantial traction and retailers are increasingly exploring
options in them. However, these still have high growth potential
and we believe that this is the right time for other retailers to
actively consider these and other emerging locations for their
own future growth.

Potential of New Emerging Main Streets

Cities

New Emerging Main Streets

Potential (Growth Factors)

Bengaluru

HSR Layout (27th Main)

Proximity to IT-ITeS hubs on both sides; prolific residential development and future
metro connectivity

Sahakar Nagar

Lack of retail avenues in the vicinity and densely populated neighbourhoods

Chennai

Delhi-NCR

Hyderabad

Kolkata

Mumbai

Pune

20

Ambattur (MTH Road)

Proximity to high population density residential catchments and burgeoning IT-ITeS hub

ECR

Strategically located between two major commercial and residential hubs

Dwarka (Ashirwad Chowk)

Infrastructure, broad roads and favourable population growth

Sohna Road

Swelling residential catchment

Chanda Nagar

Good connectivity and social infrastructure; increasing residential clusters

Kothapet

Adjacent to old commercial hub

Diamond Harbour Road

Development of townships; increased residential penetration

NSC Bose Road

Situated between two busy transport hubs; easy accessibility and ample good
quality retail space under construction

Ambadi Road

Vasai an established mid-income residential location

Airoli (Sectors 4 & 8)

Growing concentration of IT-ITeS Parks in Airoli

Pimple Saudagar

Increasing population and lack of other malls or main streets

Kharadi

High residential catchment area

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For more information on C&W's Retail

Services, contact:

For more information about C&W

Research, contact:

For more information about C&W,

contact:

Sanjay Dutt
Executive Managing Director, South Asia
Cushman & Wakefield
+91 22 6657 5555
sanjay.dutt@ap.cushwake.com

Siddhart Goel
Director, Research
+91 22 6657 5555
siddhart.goel@ap.cushwake.com

Sitara Achreja
Director, Marketing & Communications
+91 124 469 5555
sitara.achreja@ap.cushwake.com

Authors of the report:

Siddhart Goel
Director, Research
siddhart.goel@ap.cushwake.com

Sarbani Chatterjee
Manager
sarbani.chatterjee@ap.cushwake.com

Divya Grover
Deputy Manager
divya.grover@ap.cushwake.com

Anuradha Chakraborty
Associate
anuradha.chakraborty@ap.cushwake.com

Disclaimer
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accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other
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