Plans afoot to house more factory outlets in Indian malls: Report

More factory outlet malls are likely to come up in India, to match the numbers across countries like UK and US, as retail facility developers struggle to sustain in a market driven by deep discounting, a report in The Economic Times has said.

Considering the aspect that a huge chunk of the Indian population thoroughly enjoys and thrives on shopping at factory outlets at heavily discounted prices, the retail space still needs to be more organised in the country.

"We have opened a mall in Delhi's Jasola where all the premium brands have factory outlets. Some brands have opened their first such store in the country. It is still an early stage, but the concept is expected to gain popularity," Abhishek Bansal, managing director of Pacific Malls, was quoted by the publication as saying . The company has also revealed its intent to explore more such options.

Also Read | Retail trade set for revamp

The mall will house popular brands like Tommy Hilfiger, Skechers, Adidas, Calvin Klein, Lacoste, Birkenstock, The Tank and so on at discounted prices.

Managing Director and CEO at Lacoste India, Rajesh Jain, opined that such premium outlet malls will offer a more wholesome shopping experience. "Till now, most factory outlets were located in high street locations which was a hassle for consumers for parking. Our store in the Jasola mall has exceeded our expectations," told the publication.

Another mall developer in Coimbatore's Erode is planning to build a space spread across 300,000 sq ft, which will have factory outlets of various brands.

More such retail spaces are expected to come up in Bengaluru, Guwahati, Coimbatore and Punjab. However, a major challenge that lies ahead of mall developers is arriving at a conclusion on the rent, as heavy discounting is expected to take a toll on the revenue.

According to a report from consultancy firm Anarock Retail, the top seven Indian cities will add about 11 million square feet of mall space in 2023. However, many of the developers are not yet ready to experiment with factory outlets.