Retail dilemma in India - nice malls are few and far between

February 24, 2015

New Delhi/Mumbai Feb 24: A severe shortage of attractive malls has made setting up shop in India easier said than done, crimping expansion plans for both foreign retailers such as Lacoste and domestic giants like department store chain Shoppers Stop.

Malls Retail dilemmaIndia's searing heat, heavy traffic and cluttered pavements make malls the most popular option for urban middle class consumers looking for a day out. But many centres - despite having been built in the last decade - are struggling to draw shoppers or retailers because of poor design or because they are difficult to manage.

P.S. Puri, CEO of MGF Mall Management, which runs MGF Metropolitan, knows this all too well. Located in a posh district in the south of New Delhi, security guards and sales staff outnumbered shoppers last Tuesday evening in what was once a bustling mall.

It has restaurants but lacks popular attractions like a food court and a cinema. The sale of shop ownership piecemeal has made management difficult and now only one quarter of the space is occupied by fashion retailers - about the same amount that is vacant.

"There is very little we can do because the shops are sold and the owners bring in whomever they want. They lease it to a liquor shop because they get slightly higher rents but then no other retailer wants to be next to a liquor store," said Puri.

Recently built malls where shops are leased, not sold, are faring better but there are not yet enough of them to meet a forecast rapid increase in demand as the economy improves.

"There are very few projects coming up in the next one or two years where we can open a store," said Rajesh Jain, CEO at French sportswear maker Lacoste' India division. "This is really restricting our expansion for sure."

FIRST FORAYS

Revenue from organised bricks-and-mortar retail in India is expected to more than triple to $150 billion by 2020, according to consulting firm Technopak - spurred by a raft of foreign retailers planning their first foray into the market, heating up competition for mall space.

In the past six months, Gap Inc (GPS.N) has said it plans 40 stores, The Children's Place (PLCE.O) is looking at 50 while Hennes & Mauritz (H&M) (HMb.ST) has plans for an initial 50 shops. Established brands are also expanding, with Marks & Spencer (MKS.L) aiming to lift its store numbers to 80 from 45 by 2016/17.

But India has only 77.6 million square feet of mall space, less than one tenth of U.S. levels, despite having nearly four times the population, with the shortage of attractive malls most acute in New Delhi and Mumbai.

One in every six stores is empty, according to property consultants Jones Lang LaSalle, while advisory and management firm Beyond Squarefeet estimates that up to 25 malls have been shut or converted to other uses in the past two years. That does not include two of Mumbai's oldest suburban malls, Centre One and Nirmal Lifestyle, which have said they are shutting down as shoppers stayed away.

Many centres, especially those that went up during the 2006-2007 real estate boom, were built by developers with little mall building experience. Ownership of shops was often sold off piecemeal while many do not have sufficient parking for shoppers or areas for retailers to bring in their supplies.

"Many of the malls that grew up did not even think of these things," said Kumar Rajagopalan, CEO of the Retailers' Association of India.

Until new and better malls are built, some retailers are looking at alternatives such as leasing standalone shops that can often be less lucrative or investing big in fast-growing but nascent online services.

"We...have to look at online spaces in a bigger way much earlier than before, because there is definitely a big shortage (of physical retail space)," said Govind Shrikhande, managing director at Shoppers Stop.

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Agencies
August 8,2020

Idukki, Aug 8: Nine more bodies have been recovered from the landslide ravaged Pettimudi near Munnar in Idukki on Saturday. With this the death toll in the tragedy reached 26. Around 40 are feared to be still trapped under the debris or washed away.

The rescue operation by NDRF and Fire and Rescue Services that was stopped by Friday evening due to poor light and bad weather resumed by Saturday morning.

Horrifying scene prevailed in the area as relatives of the missing people screamed around in search of their beloved ones. As it is nearly 48 hours since the incident happened, the chances of recovering missing persons alive from the debris is becoming bleak. Three of the bodies recovered on Saturday could not be identified till evening.

Kerala Revenue Minster E Chandrasekharan, who visited the area on Saturday, said that search operation would be carried out until all the missing are recovered.

It was by around 11.30 pm on Thursday that landslide had hit the Nayamakkad estate of Kannan Devan Hills and Plantations. Settlement clusters of plantation workers where 83 persons were staying were reduced to debris as the huge rocks came bulldozing. Five of the residents were reported to be not in the spot while the mishap occured.

Meanwhile, heavy rains led to floods at many parts of the state. Red alert has been issued at Idukki, Malappuram and Wayanad districts for Sunday also. A total of 11,446 persons of 3,530 families were shifted to relief camps across the state, of which major chunk is at Wayanad.

Chief Minister Pinarayi Vijayan said that water level at most dams is increasing swiftly.

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News Network
March 30,2020

Thiruvananthapuram, Mar 30: The Kerala chapter of the Indian Medical Association (IMA) has said that the state government's decision to sell alcohol to those with a prescription from doctors for having withdrawal symptoms is not a scientific one.

"Scientific treatment should be given to those who have alcohol withdrawal symptoms. It can be treated at home or in hospitals with medicines. It is not scientifically acceptable to offer alcohol to such people instead," a statement by IMA said.
The IMA said that they have taken the matter up with Chief Minister Pinarayi Vijayan.

The association said that the doctors have no legal obligation to provide a prescription for alcohol.

"Writing a liquor prescription can result in the cancellation of the right to treatment. We have brought it to the notice of Chief Minister," it added.

IMA state president Dr Abraham Varghese and state secretary Dr Gopi Kumar said that scientific treatments are good for those with withdrawal symptoms and added that if other methods are adopted it will only complicate matters.

Kerala government had earlier said that it was considering the option of online sale of liquor in the state to those with a prescription from doctors.

The decision had come in the backdrop of a country-wide lockdown to prevent the spread of coronavirus.

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Agencies
April 23,2020

New Delhi, Apr 23: The nationwide lockdown in India which started about a month ago has impacted nearly 40 million internal migrants, the World Bank has said.

The lockdown in India has impacted the livelihoods of a large proportion of the country's nearly 40 million internal migrants. Around 50,000 60,000 moved from urban centers to rural areas of origin in the span of a few days, the bank said in a report released on Wednesday.

According to the report -- 'COVID-19 Crisis Through a Migration Lens' -- the magnitude of internal migration is about two-and-a-half times that of international migration.

Lockdowns, loss of employment, and social distancing prompted a chaotic and painful process of mass return for internal migrants in India and many countries in Latin America, it said.

Thus, the COVID-19 containment measures might have contributed to spreading the epidemic, the report said.

Governments need to address the challenges facing internal migrants by including them in health services and cash transfer and other social programmes, and protecting them from discrimination, it said.

World Bank said that coronavirus crisis has affected both international and internal migration in the South Asia region.

As the early phases of the crisis unfolded, many international migrants, especially from the Gulf countries, returned to countries such as India, Pakistan, and Bangladesh until travel restrictions halted these flows.

Some migrants had to be evacuated by governments, such as those of China and Iran, it said.

Before the coronavirus crisis, migrant outflows from the region were robust, the report said.

The number of recorded, primarily low-skilled emigrants from India and Pakistan rose in 2019 relative to the prior year but is expected to decline in 2020 due to the pandemic and oil price declines impacting the Gulf countries.

In India, the number of low-skilled emigrants seeking mandatory clearance for emigration rose slightly by eight percent to 368,048 in 2019.

In Pakistan, the number of emigrants jumped 63 per cent to 6,25,203 in 2019, largely due to a doubling of emigration to Saudi Arabia, it said.

According to the bank, migration flows are likely to fall, but the stock of international migrants may not decrease immediately, since migrants cannot return to their countries due to travel bans and disruption to transportation services.

In 2019, there were around 272 million international migrants.

The rate of voluntary return migration is likely to fall, except in the case of a few cross-border migration corridors in the South (such as Venezuela-Colombia, Nepal-India, Zimbabwe South Africa, Myanmar-Thailand), it said.

Migrant workers tend to be vulnerable to the loss of employment and wages during an economic crisis in their host country, more so than native-born workers.

Lockdowns in labour camps and dormitories can also increase the risk of contagion among migrant workers.

Many migrants have been stranded due to the suspension of transport services. Some host countries have granted visa extensions and temporary amnesty to migrant workers, and some have suspended the involuntary return of migrants, it said.

Observing that government policy responses to the COVID-19 crisis have largely excluded migrants and their families back home, the World Bank said there is a strong case for including migrants in the near-term health strategies of all countries, given the externalities associated with the health status of an entire population in the face of a highly contagious pandemic.

The Bank said governments would do well to consider short, medium and long-term interventions to support stranded migrants, remittance infrastructure, loss of subsistence income for families back home, and access to health, housing, education, and jobs for migrant workers in host/transit countries and their families back home.

The pandemic has also highlighted the global shortage of health professionals and an urgent need for global cooperation and long-term investments in medical training, it said.

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