New retail supply of 2 million sq. ft. entered in H2 2017, a majority of which was concentrated in Kolkata, Delhi National Capital Region (NCR), Chennai, Pune, and Bangalore; total organized supply of 3.4 million sq. ft. came on stream in 2017.
The policy push during the year remained strong for retail. While a new FDI policy with relaxations for retail trading came into force from August 2017, the government recently allowed 100% FDI in single-brand retail trading ( SBRT) under the automatic route.
Apart from several new players such as Tom Tailor, ToysRus, Miniso, Simon Carter, Women's Secret, and Jo Malone; Madame Tussauds made its debut in the country with the first museum opening in Delhi in October 2017, while IKEA opened an experience center – Hej Homes in Hyderabad.
The attractiveness of retail assets as an investment class continued as retail assets recorded investments from PE firms and wealth funds to the tune of over USD 800 million during the year. This takes the cumulative investments in retail assets to USD 1.5 billion in the last two years.
A key trend in 2017 has been the convergence of online and offline retail. While major e-commerce retailers such as Urban Ladder, Craftsvilla, Myntra, Jaypore, PepperFry continued to expand their offline presence, leading retailers such as Zara have been setting up their online presence.