Tier II and III cities like Lucknow, Jaipur, Chandigarh, Kochi, Patna and Bhubaneshwar are the next retail destinations owing to increasing real estate rentals of tier I cities, said the head of 1-India family mart. The retail sector in tier II and III cities witnessed an investment of ₹42,724 crore in 2006 and 2017, as against ₹8935 crore in tier I cities.
“Some of the key reasons to take into consideration regarding the evolution of retail sector in tier II and III cities are factors like lack of available space in retail malls in metro cities, increasing lease rentals in metro malls, and high land prices in tier I cities. These factors have made it difficult for retailers to own real estate in these cities, which in turn creates opportunities for business growth in smaller cities. Therefore, it encourages entrepreneurs to discover business in tier II and III cities,” said Jay Prakash Shukla, CEO & co-founder, 1-India Family Mart, while speaking to Fibre2Fashion.Tier II and III cities like Lucknow, Jaipur, Chandigarh, Kochi, Patna and Bhubaneshwar are the next retail destinations owing to increasing real estate rentals of tier I cities, said the head of 1-India family mart. The retail sector in tier II and III cities witnessed an investment of ₹42,724 crore in 2006 and 2017, as against ₹8935 crore in tier I cities.#
Starts ups have also started focusing on tier II and III cities. Shukla added that factors like lack of available space in metro cities and high land prices, starting a business in such cities makes business sense. International airport connectivity across cities such as Lucknow, Kochi, Bhubaneswar, Nagpur to name a few, and the rising levels of disposable income have prompted various global and local brands to plan their expansion plans in these cities.
1-India Family Mart, established in 2012 and owned by Nyssa Retail Private Limited, is among the leading value retail chains in India. The company provides affordable fashion apparels, lifestyle products and general merchandise across India. (KD)
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ALCHEMPro News Desk – India
marketing@alchempro.com
