Discount Malls Trend to “Take-off” in Small Cities

April 23, 2007	(1 votes, average: 1 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Undoubtedly, Indian retail industry is turning milestones into stepping stones. The mushrooming mall culture has embraced another trend of discount malls. The renowned realtors and local retail chains are taking large interests in constructing shopping malls in regional boroughs, specifically to sell premium branded goods at the rates less than the maximum retail price (MRP).

Around 50 malls are likely to come up in the next two years across the country, targeting middle to premium end of the market. The famous Royal Palms is soon to construct one of the largest discount malls, Orchard Road Mall in the western suburbs of Mumbai. The project is likely to be over by Diwali this year. The project will feature 3 lakh sq ft of mall space for factory outlets and the remaining will be dedicated to private labels.

As the name signifies, discount malls will certainly be the cheaper than prohibitive premium malls. Moreover, the international brand will also be 30 per cent to 40 per cent low than their MRP.

Orchard Road Mall will have a number of branded outlets including the prominent names like FCUK, Welspun, Provogue, Calvin Klein, Louis Philip, Adida, Nike, and Kouton as anchor tenants, says Dilawar Nensey, joint managing director, Royal Palms.

Close on the heels of Royal Palms is Aakruti Nirman, another big ticket developer, which is drawing plans for its soon-to-come discount malls in Kanjurmag, Ghatkopar, Mumbai, and Thane as ‘Cityworld’.

The company envisages establishing its substantial presence in tier II and tier III cities. In addition, these cities provide the benefit of cheap land thereby cutting the entire cost of development to a great extent.

There are plans to bring a multitude of discount malls with an area of 1 to 3 lakh sq ft, compared with 6 lakh sq ft of malls in the metros, says Hemant Shah, Chairman, Akruti Nirman.

People are bullish on shopping from factory outlets being famous for offering the quality commodities in low prices. However, these discount malls are believed to take proper care regarding the sales to get impacted by the factory outlets.

News Published Under:   Mumbai, Retail Market in India |

Comments