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India's retail sector surges with 169 pc growth in Q1 2025: Report

IANS May 9, 2025 237 views

India's retail sector is experiencing an extraordinary surge, with a remarkable 169% year-on-year growth in the first quarter of 2025. Fashion and apparel brands are leading the expansion, accounting for 31% of new retail space leasing across top metropolitan cities. Domestic retailers continue to dominate, capturing 86% of the market, while simultaneously welcoming eight new international brands. The growth is particularly concentrated in Bengaluru and Hyderabad, which together represent 60% of the country's retail leasing activity.

"The segment accounted for a significant 31 per cent share of the leasing activity" - Dr Samantak Das, JLL"
Mumbai, May 9: The Indian retail sector witnessed 169 per cent growth (year-on-year) in the January-March quarter, as strong momentum in new retail store openings continued to play out in major metropolitan cities, a report said on Friday.

Key Points

1

Fashion and apparel lead retail space expansion across major Indian cities

2

Domestic retailers dominate with 86% market share

3

Bengaluru and Hyderabad drive 60% of retail leasing activity

4

8 new international brands enter Indian market

On a quarter-on-quarter (QoQ) basis, gross leasing activity in the retail sector noted an uptrend of 9 per cent, according to the report by JLL India.

While demand for retail spaces continued unabated across the top seven cities, the infusion of new retail spaces also totalled to a new high.

During Q1 2025, 3.1 million square feet was leased by retailers in shopping malls and high streets across top seven cities. On the supply front, Q1 2025 witnessed new retail space additions of 2 million sq ft.

In terms of geographic spread of leasing volume, Bengaluru and Hyderabad together accounted for 60 per cent of the overall India leasing activity. Prominent high streets across both these cities witnessed vibrant leasing in suburban micro-markets with larger store size requirements coming from retailer categories such as daily needs and grocery, food and beverages and fashion and apparel, said the report.

Among retailer categories, fashion and apparel continued to remain the frontrunner in India’s retail landscape.

“The segment accounted for a significant 31 per cent share of the leasing activity in Q1 2025. Brands catering to contemporary and fast fashion dominated the space take-up as both existing and new entrants in the Indian retail scene fast expanded brick and mortar footprint to serve the growing needs of younger demographic,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

During the quarter, domestic retailers continued to lead retail space take-up with an 86 per cent share.

The quarter also saw 8 new brands of international origin open their first retail store 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 catering to artisanal brewing and premium coffee segment,” said Rahul Arora, Head-Office Leasing and Retail Services, India, JLL.

Reader Comments

R
Rajesh K.
This is fantastic news! Shows how India's consumer economy is booming despite global slowdowns. The 169% growth is mind-blowing! 🚀 But I hope this retail expansion also creates more jobs for local youth, not just fancy malls for elites.
P
Priya M.
As someone from Hyderabad, I can confirm the retail boom here! Every month new stores open in Gachibowli. But traffic is becoming a nightmare - infrastructure needs to keep pace with this growth. More metro connectivity please!
A
Amit S.
Good to see domestic retailers dominating with 86% share. We must support our own brands even as international ones enter. But quality and customer service must improve to compete globally.
S
Sunita R.
Fashion brands leading at 31% shows how aspirational India is becoming! But hope this growth trickles down to smaller cities too. Tier 2/3 cities have equal spending power if given proper retail infrastructure.
V
Vikram J.
While growth numbers look impressive, we must ask - how sustainable is this? So many malls are half-empty after initial hype. Retailers should focus on profitability, not just expansion for vanity metrics.
N
Neha P.
Coffee culture explosion is real! ☕ From CCD to international brands, India's café scene has come a long way. But hope these foreign brands adapt to Indian tastes - not everyone wants bitter espresso!

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Tags:
Indian Retail Sector JLL Report Retail Growth Fashion Brands Bengaluru Retail Hyderabad Retail
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