India’s retail sector booms in the first quarter
Mumbai Mumbai, May 10: The Indian retail sector witnessed a 169 per cent growth (year-on-year) in the January-March quarter, as the strong momentum in new retail store openings continued across key metropolitan cities, a report said on Friday. On a quarter-on-quarter (QoQ) basis, the retail sector witnessed a 9 per cent growth in gross leasing activity, according to a JLL India report. While demand for retail spaces continued unabated across the top seven cities, the addition of new retail spaces also reached a new high overall. During the first quarter of 2025, 3.1 million sq ft was leased by retailers across shopping malls and high streets across the top seven cities. On the supply front, 2 million sq ft of new retail spaces were added in the first quarter of 2025. The report said that leasing in suburban micro markets on key streets of both these cities witnessed a spurt in leasing, with larger store size requirements coming from retailer categories such as daily needs and groceries, food and beverages, and fashion and apparel.
Among retailer categories, fashion and apparel continued to be at the forefront of India’s retail landscape. Dr. Samantak Das, Chief Economist and Head of Research, JLL & REIS, India, said, “This segment accounted for a significant 31 per cent of leasing activity in Q1 2025. Brands catering to contemporary and fast fashion expanded rapidly as both existing and new entrants to the Indian retail landscape expanded to meet the growing needs of the younger demographic.” During the quarter, domestic retailers continued to lead in taking up retail space with an 86 per cent share. The quarter saw 8 new brands of international origin open their first retail stores in the country. “These retailers included fast-fashion brands, European coffee giants and electric vehicle (EV) manufacturers. The growing out-of-home coffee market in India continues to attract new international brands that cater to the artisanal brewing and premium coffee segments,” said Rahul Arora, Head-Office Leasing and Retail Services, JLL India.
