More than 30 major retail brands opened their stores in 14 Tier-II cities during the January-September period of last year, according to property consultant CBRE.
In its report 'Tier-II Cities: The Time to Shine' released on Tuesday, CBRE said that several domestic and international retail brands, including Croma, Armani Exchange, Malabar Gold & Diamonds, Reliance Smart, Tanishq, H&M, Marks & Spencer, GAP, Starbucks, Pizza Express and Under Armour, have expanded their retail footprint to Tier-II cities.
The Tier-II cities are Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore and Coimbatore.
The total retail real estate space in these 14 Tier-II cities stood at 29 million square feet as of September 2023, with Jaipur, Lucknow, and Chandigarh each boasting of retail real estate space ranging between 3 to 7 million square feet, as per the report.
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The retail development in these cities has been a healthy mix of high streets and malls.
Anshuman Magazine, Chairman, India, Southeast Asia, Middle East & Africa of CBRE, said the e-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in Tier-II cities.
"Investment-grade developers are setting up large-sized contemporary malls in these cities, which are seen as an entertainment destinations and not just as a place to shop," he said.
He noted that most non-metro cities are established trade and business hubs and are now witnessing multinational corporations and start-ups setting up offices as well.
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"Growing population in Tier-II cities are further propelling demand for a diverse range of retail offerings," Magazine said.
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