Developers are also renegotiating their lease agreements and business models to keep the momentum going.
âNegotiations between retailers and investors have improved and increased significantly after the pandemic. At this point, it is extremely crucial for developers to gain the trust of customers and build their trust as allies, especially in these testing times. Understanding the current market sentiment, we do not hesitate to go the extra mile to offer the best proposition at all times to our valued partners, âsaid Pankaj Bansal, Director of M3M.
At present, the company offers a share of the revenue for one year.
âSales in shopping malls have reached 70-80% of pre-Covid levels, and businesses are booming. We are confident that we will see promising results in the coming quarters, âadded Bansal.
The Elan Group, which operates several retail assets in Gurgaon, is renegotiating contracts with key brands to ensure a win-win partnership with its customers.
âWe are open to discuss existing terms and conditions with brands and have also instituted flexible revenue sharing models to help them overcome the impact of the pandemic. The resumption of business activity has rekindled sentiment and will lead to the rapid rebound in Retail spaces are gradually gaining traction, but with health, hygiene and well-being measures. We anticipate industry consolidation in favor of organized developers who have excellent track record, âsaid Ravish Kapoor, Managing Director of Elan Group.
, President-Leasing, Omaxe Ltd., expects omnichannel shopping to be the norm in the post-pandemic world. Although he said tight hours, especially in states such as Maharashtra, have been a deterrent to boosting sales, the upcoming holiday season will set the pace for the recovery.
âFollowing a strong upturn in consumer sentiment, shopping centers saw a rebound in sales, reaching 50-60% of pre-Covid levels. Segments such as clothing, food, supermarkets, etc. experienced good growth. Renegotiations and waivers were agreed to on a case-by-case basis during the first wave of the COVID-19 pandemic, and landlords and tenants have agreed to be accommodating in their joint efforts to increase footfall and boost spending â said Abhinav C Ajmera. , President-Leasing, Omaxe Ltd.
Omaxe Ltd. operates Omaxe Chowk in Chandni Chowk, New Delhi, through its subsidiary Omaxe Heritage Pvt. Ltd. in collaboration with North Delhi Municipal Corporation (NDMC). The project is conceptualized as a one-stop-shop retail destination and will give Chandni Chowk a major facelift.
âThe pandemic situation leading to extended shutdowns has left malls and retailers under enormous financial pressure. So we are working on mutually beneficial solutions to have a win-win situation for both – the mall and our tenants. So we have crafted appropriate concessions keeping in mind the brand category, the state of the business during the lockdown period – whether it is open for food deliveries, e-commerce or fully closed â said Sachin Dhanawade – Chief Operating Officer (COO) Retail & Real Estate, Grauer & Weil (India) Limited, which operates Growel’s 1O1 mall in the Kandivali suburb of Mumbai.
The duration of the concessions is also the basis of the expected rebound of companies compared to the reopening of last year, the completion of the two doses of vaccination for the staff and as well as the target group of customers for the brand / category given that the population under 45 will be fully vaccinated before the end of the year holidays.
Nandini Taneja, vice president, Leasing, Reach Pro Group, which operates two retail spaces in Gurgaon, said customers are now heading to the main streets.
âPreviously, out of total retail rentals, only 30% happened in High-street, but the trend reversed after COVID. Not only does it offer open spaces, but the maintenance cost of main streets is comparatively lower than that of shopping malls. Developers and retailers have worked together to emerge from the crisis and we will always support each other, âTaneja said.