E-tailers queer the pitch for mall retailers

A whitepaper titled 'Impact of e-tailing on brick and mortar retail in India'by Colliers International and Frost & Sullivan says rapid proliferation of high-speed internet and internet-enabled smart devices has contributed to the expansion of online retail in India at more than 40 per cent in FY 2013-14. Organised retail grew just 10 to 12 per cent in the same period, while brick and mortar retail, as a whole, grew 6 to 7 per cent. Capital value and retail rentals remained flat in India's top seven cities in FY 2013-14. The overall absorption declined and only 1.6 million sq ft of retail space was absorbed in India in 2014, down from 5.1 million sq ft in 2013. Competition from e-tailers has been a major reason behind the slowdown of sales for a majority of the bigger mall retailers. In the face of the competition, mall owners are looking at a defense strategy to ensure the viability of their retail assets. According to the whitepaper, retailers are increasingly integrating both online and online presence through different combinations of product presentation, payment, and delivery modules for their stores and digital platforms.