Kolkata has begun to see movement in the retail market and may witness a welcome spurt in shop-stops in the next few months, provided franchisees get their brands and retail destination right.
According to Mayank Saksena, head – transactions, Kolkata, Jones Lang LaSalle Meghraj, in terms of supply, only two new malls – Lake City Mall and City Centre II – are scheduled to arrive in the near future. This will be followed by Riverside Mall later on. Retail rentals had reduced by approximately 25 per cent in the last two years and have reached stagnancy at present.
“The challenge so far was that retailers were demanding a pure revenue sharing model with no minimum guarantee component. Reason has now returned on this front,†Saksena said. “No new brands are setting up shop in Kolkata as of now.
In fact, a few brands such as ‘Odyssey’ have left Kolkata. South Kolkata is the most preferred retail expansion destination at the moment. The major correction has already happened. While there may be minor corrections in certain locations going forward, the fact is that the retail rental scenario is now almost stabilized,†Saksena said. More.
