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
June 7,2020

New Delhi, Jun 7: The Islamic Centre of India on Saturday issued an advisory for those visiting mosques in view of the Centre’s decision to allow reopening of religious places from June 8.

Islamic Centre of India chairman Maulana Khalid Rasheed Farangi Mahali advised people above 65 years and under 10 years of age not to visit mosques and instead offer prayers at home.

He also advised against crowding in mosques, stressing that not more than five people should be present at a time and social distancing be maintained, with the ‘namazis’ using masks and keeping a distance of six feet among themselves while offering prayers.

He added that the situation would be reviewed after 15 days and if required, another advisory would be issued.

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Agencies
May 21,2020

More than 50 million people in India do not have access to effective handwashing, putting them at a greater risk of acquiring and transmitting the novel coronavirus, according to a study.

Researchers from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington in the US found that without access to soap and clean water, over 2 billion people in low- and middle-income nations -- a quarter of the world's population -- have a greater likelihood of transmitting the coronavirus than those in wealthy countries.

According to the study, published in the journal Environmental Health Perspectives, more than 50 per cent of the people in sub-Saharan Africa and Oceania lacked access to effective handwashing.

"Handwashing is one of the key measures to prevent COVID transmission, yet it is distressing that access is unavailable in many countries that also have limited health care capacity," said Michael Brauer, a professor at IHME.

The study found that in 46 countries, more than half of people lacked access to soap and clean water.

In India, Pakistan, China, Bangladesh, Nigeria, Ethiopia, Democratic Republic of the Congo, and Indonesia, more than 50 million persons in each country were estimated to be without handwashing access, according to the study.

"Temporary fixes, such as hand sanitizer or water trucks, are just that -- temporary fixes," Brauer said.

"But implementing long-term solutions is needed to protect against COVID and the more than 700,000 deaths each year due to poor handwashing access," Brauer said.

He noted that even with 25 per cent of the world's population lacking access to effective handwashing facilities, there have been "substantial improvements in many countries" between 1990 and 2019.

Those countries include Saudi Arabia, Morocco, Nepal, and Tanzania, which have improved their nations' sanitation, the researchers said.

The study does not estimate access to handwashing facilities in non-household settings such as schools, workplaces, health care facilities, and other public locations such as markets.

Earlier this month, the World Health Organization predicted 190,000 people in Africa could die of COVID-19 in the first year of the pandemic, and that upward of 44 million of the continent's 1.3 billion people could be infected with the coronavirus, the researchers said. 

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Agencies
May 31,2020

Mumbai, May 31: Shiv Sena leader Sanjay Raut on Sunday alleged that the event held in Ahmedabad to welcome US President Donald Trump in February was responsible for the spread of coronavirus in Gujarat and later in Mumbai and Delhi, which some of his delegates had visited.

Raut also hit out at the Centre saying that the lockdown was implemented without any planning, but now the responsibility of lifting the curbs was left to the states.

The Sena MP said that despite the opposition BJP's attempts to pull down the Maharashtra Vikas Aghadi (MVA) government, there was no threat to it as its survival is the 'majboori' (compulsion) of all the three ruling allies- Sena, NCP and Congress.

"It can't be denied that the spread of coronavirus in Gujarat was because of the massive public gathering held to welcome US President Donald Trump. Some of the delegates, who accompanied Trump, also visited Mumbai, Delhi, which led to the spread of the virus," Raut said in his weekly column in Shiv Sena mouthpiece 'Saamana'.

On February 24, Trump along with Prime Minister Narendra Modi had taken part in a road-show in Ahmedabad, which was attended by thousands of people. After the road- show, the two leaders had addressed a gathering of over one lakh people at Motera cricket stadium, run by Gujarat Cricket Association (GCA).

Gujarat had reported its first coronavirus cases on March 20, when samples of a man from Rajkot and a woman from Surat tested positive for the disease.

Raut said that any move to pull down the Uddhav Thackeray-led MVA government and impose President's rule in the state citing its failure to curb the coronavirus pandemic would be suicidal.

"The state had witnessed how President's rule was imposed and lifted as per will six months ago," he said.

"If the handling of coronavirus cases is the basis of imposing President's rule, then it should be done in at least 17 states, including the BJP-ruled ones. Even the central government has failed to curb the pandemic as it had no planning to fight the virus," he said.

"The lockdown was imposed without any planning and now without any plan, the responsibility of lifting it has been left to the states. This chaos will further worsen the crisis," he said.

The Sena MP said that Congress leader Rahul Gandhi has made an excellent analysis of how the lockdown has failed.

"It is shocking that people can indulge in politics by demanding President's rule in Maharashtra for the rise in the coronavirus cases," he said.

BJP MP Narayan Rane had recently met Maharashtra Governor B S Koshyari and demanded imposition of President's rule in view of the the Shiv Sena-led state government's "failure" in tackling the coronavirus pandemic. However, the BJP had later said that it was not trying to destabilise the government.

Speaking about the stability of the government, Raut said that the survival of the MVA government was the 'majboori' (compulsion) of each of the three alliance partners.

"Even if there are internal conflicts among the ruling partners, there is no threat to the government as the allies know that its survival is the 'majboori' of each one of them," Raut said.

He said that the Devendra Fadnavis-led government, in which the BJP and Shiv Sena shared power, saw internal conflicts between the ruling allies, but it completed its full five-year term.

Slamming Fadnavis, who is now the Leader of Opposition in the Legislative Assembly, for predicting downfall of the MVA government saying it will fall on its own due to its internal bickering.

"If the Fadnavis government, which witnessed deep internal conflicts between BJP and Sena, didn't fall, how can this one collapse? The Fadnavis government survived despite the (Sena) ministers carrying their resignation letters in their pockets," Raut wrote.

Fadnavis, in an online media interaction held earlier recently, said he had no intention to destabilise the MVA government and said it would collapse on its own.

"What Fadnavis means is that all attempts (of the BJP) to create discord among the three allies and break the MLAs has failed. Now the opposition hopes that something would happen among the allies and the government would be fall apart," he said.

Raut said NCP president Sharad Pawar is the prominent leader, who laid the foundation stone of the "Thackeray sarkar", and only he can predict the future of the government.

"He continues to say the government is stable and even the Congress is not going anywhere. MVA legislators are not up for sale in horse-trading. Hence, if the opposition says that the government will fall, it is wrong," he said.

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