According to property consultants JLL India, out of 255 malls in major Indian cities, merely 10 percent are running in break-even or profitable condition, while the rest are bleeding and making huge losses or loosing stream fast.
Giving initial figures for Delhi NCR region, the report said out of 100, just 12 are making sense in the capital region known as the ‘mall capital of India’. In fact, Mumbai, despite having 45 malls, 15 are performing better, which means almost one-third success rate.
The report studied 255 malls in the top seven cities — Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai and Hyderabad — and listed out those malls which are out of business or not functional.
“With nearly a hundred malls in the Delhi-National Capital Region (NCR), it has become the default mall capital of India. No other city comes close to the number of operational malls that are found in Delhi-NCR,” says Pankaj Renjhen of JLL India.
This, despite the fact that the Delhi-NCR is better placed than other cities to host large-sized and successful malls, he said. Still, many of them are making huge losses and four of them had recently closed down while one chose to turn it into office space, he said in a statement.
Renjhen says the success of malls depends on brand positioning and professional brand placement teams. Citing the example of successful malls such as Select City Walk in Saket, Ambience Mall on NH 8 Vasant Kunj, DLF malls in Saket and Vasant Kunj, Pacific Mall in West Delhi and MGF Metropolitan Mall on MG Road, Gurgaon, Renjhen said employing professional tenant management teams is one means to make them successful.
Besides merely renting out, the success rate depends more on design and layout, the mall’s brand positioning, location and larger target groups and neighbourhood feeling. Those malls which have promoted family outings are more successful, he said. “Whether or not they have been able to evolve into family destinations rather than just remaining shopping centres plays a big role.”