Indian Economy News

Global biggies Zara, H&M and Adidas bet big on tier-2 cities to drive growth

  • IBEF
  • January 30, 2024

Retailers in India are strategically investing in tier-2 cities as a growing affluent population, coupled with rapid infrastructure development, creates new consumption hubs. A study by CBRE highlights global brands like Zara, H&M, Adidas, Nike, Starbucks, Uniqlo, and Marks & Spencer, alongside local brands, capitalizing on market potential in cities such as Jaipur, Chandigarh, Patna, Lucknow, Kochi, Goa, and Coimbatore. As of September 2023, Jaipur, Lucknow, and Chandigarh each had retail stock ranging between 3-7 million square feet. This trend signifies a strategic shift towards untapped markets, acknowledging the rising economic significance of tier-2 cities.

The CBRE study reveals a transformation in retail dynamics, with tier-2 cities emerging as established trade and business hubs experiencing robust commercial office space uptake. The retail landscape has evolved, beyond basic stores on high streets to attract investment-grade developers establishing high-quality retail spaces. These spaces serve as both entertainment and shopping destinations, reflecting the maturation of retail supply in non-metro areas, as articulated by analysts at CBRE.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.