Out of the nearly 100 operational shopping malls in the national capital, barely 12 are running successfully even as the region is the ‘mall capital of India’, according to property consultant JLL India.
In contrast, Mumbai has about 45 malls and out of which 10-15 are good performing malls.
The top seven cities of India– Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai and Hyderabad– account for a total of 255 operational malls.
“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,” JLL India MD (Retail Services) Pankaj Renjhen said in a statement.
However, from a business perspective not all of them are successful.
“In Delhi NCR, there are around 95 operational malls out of which 12 malls are successful,” he added.
Nevertheless, Renjhen said: “Among all the above cities, Delhi-NCR is currently best placed for hosting successful, large-sized malls.”
Despite tough competition from other malls and high- street retail, the consultant said that only four malls closed down while one got converted into office space.
The success rate of malls varies, usually depending on factors like design and layout, the mall’s brand positioning, location and how well they cater to the needs of their target segments.
“Also, whether or not they have been able to evolve into family destinations rather than just remaining shopping centres plays a big role.”
JLL said that some of the most successful shopping malls in NCR, like Select City Walk in Saket, Ambience Mall on NH 8 Vasant Kunj, the DLF malls in Saket and Vasant Kunj, Pacific Mall in West Delhi and MGF Metropolitan Mall on MG Road, Gurgaon, employ professional tenant management teams.
These teams decide on the brands to be leased spaces in these malls, placement of different retail stores, branding, and promotions and customer outreach events in the atrium. They are involved in design and layout of malls as well.