Mall operators achieved double-digit growth in the April-June quarter, significantly outperforming expectations of a subdued period. According to reports from Moneycontrol, this growth was driven by extreme heatwave conditions, Iran war travel disruptions, and early fashion retail sales. As families chose to stay put and defer travel plans amid the raging West Asia conflict and rising trip costs, domestic consumer spending surged across dining, fashion and food and beverage (F&B) sectors.
Nexus Select Trust reported particularly strong results with consumption at their shopping destinations surging by very strong double-digits over the past two months. As reported by Moneycontrol, Pratik Dantara, head of strategy and chief investor relations officer, noted that "what we have actually seen in April and May has been much better than what we expected." The company had initially expected a slow start to the fiscal year due to geopolitical tensions, but actual performance exceeded expectations significantly.
At DLF Retail, business also registered double-digit growth, led primarily by fashion and the F&B segment. According to Moneycontrol, Pushpa Bector, senior executive director and business head, attributed this to pent-up demand as travel got dented. She noted that "people are spending more time within the country and in their cities." The heatwave also played a significant role, with F&B remaining strong as malls benefited from having multiple outlets and pipeline gas connections that didn't face supply disruptions.
Early mid-season sales by fashion retailers, dealing with inventory crisis, helped draw consumers into malls and boosted business. As reported by Moneycontrol, this is followed by end-of-season sales that will continue until mid-August. The shifting sale cycle, coupled with preference for air-conditioned spaces amid extreme heat, has helped increase footfall and business, led by the fashion and accessories segments. Footfall growth in June tracked in the mid-to-high single digits.
