Other such cities where the mall-based retailers are moving include are Goa, Kochi, Vijayawada, Visakha?patnam, Mysore, Coimbatore, Trivandrum, Guwahati, Ahmedabad and Surat and they still hold more potential for growth, adds the paper.
"High cost of operation, economic slowdown and wearing down of the novelty values have all combined to reduce the number of foot falls in the malls in big cities. One of the main reasons for the high rentals in the big city malls is the exorbitant land prices and high development costs? Thus, in the foreseeable future, making such malls profitable ventures will remain a challenge," said Kapoor.
In tier II and tier III cities, there is greater scope for growth. Also, larger chunks of land are available in these cities compared with metros, and at lower cost, said Kapoor.
The shopping trends in metro cities have influenced the consumer behaviour in tier- II and tier-III cities that are now witnessing a major shift from conventional trader-run standalone shops to larger format retail malls.
The trend can be attributed to factors like the dynamic change in the shopping trend, average spending power of the socio-economic classes in the tier-II to tier-VI cities, demand of various products under one roof, increase in brand consciousness are a few factors that multi-brand discount franchising stores drives on, adds the Assocham paper.
The overall business is seeing a growth and Tier- II and Tier-III markets have a good scope of growth. The retail growth of about 15 per cent per year is expected through 2015 thanks to the increasing prosperity in the neighbouring rural areas, said Kapoor.
Seeing the current scenario in the metros, competition has intensified, rentals have soared and operational costs have touched the roof which has affected the overall profitability of retailers in these cities.
The most popular citizen journalists' reports on merinews chosen automatically on the basis of views and comments