Direct-to-consumer (D2C) brands continued to strengthen their presence in India’s brick-and-mortar retail market in the first half of 2026, accounting for around 28% of the country’s overall retail leasing activity, up from around 23% a year earlier, according to a report by real estate consultancy CBRE.
Overall retail leasing in India rose 20% year-on-year to around 3.9 million sq ft during January-June, with the April-June quarter alone contributing nearly 2 million sq ft, said the report.
Domestic retailers remained the largest occupiers, accounting for over 70% of total leasing activity across segments such as fashion and apparel, food and beverage, entertainment and jewellery.
In terms of cities, Delhi-NCR led retail leasing with a 35% share, followed by Chennai at 17% and Mumbai at 15%.
Fashion Dominates
The report said the offline expansion strategy of D2C brands is also becoming more measured. As competition for premium retail spaces intensifies, companies are increasingly prioritising store-level profitability, capital efficiency and omnichannel integration instead of focusing solely on rapid outlet additions.
Fashion and apparel remained the largest contributor to D2C leasing with a 69% share in H1 2026, followed by homeware and furnishings (12%) and jewellery (7%).
“India’s retail story in H1 2026 reflects a market that is maturing, not just growing,” Anshuman Magazine, Chairman and CEO, India, CBRE said. Retailers are making “sharper, more considered choices” on where and how they expand, a trend that is building a more resilient retail sector, he added.
Format Innovation
The report also highlighted a shift in store formats, with several D2C brands experimenting with micro-stores, shop-in-shop partnerships and curated multi-brand retail platforms to expand their offline presence with lower execution risk.
“What stands out this half is how deliberately retailers are recalibrating their growth strategies,” Rami Kaushal, Managing Director, Consulting & Valuations, CBRE said, adding that retailers are balancing new-market expansion with long-term viability.