As heatwaves grip India,shopping malls are witnessing a surge in customer traffic,translating into significant sales increases for retailers . With school holidays coinciding with soaring temperatures and reduced summer travel,consumers are flocking to air-conditioned spaces,boosting revenues for restaurants and fashion outlets alike .
Retailers in major malls report sales growth of 15-20% compared to last year. Saurabh Khanijo, managing director of the Kylin restaurant chain, noted that waiting times at popular locations like the Mall of India in Delhi NCR have reached hours, even on weekdays. "Our sales would be up by around 15-20% for outlets in malls compared to last year," he stated.
DLF Retail's group executive director, Pushpa Bector, echoed this sentiment, projecting a revenue increase of 10-11% for DLF malls during April and May. "People are not travelling as much this summer," she explained. "Because of adverse weather conditions,disposable incomes are going into malls,and per capita spending seems to have gone up." Bector anticipates continued strong performance through August,particularly in food and beverage, beauty, and fashion sectors.
Families are spending more time at malls during the summer break,vice president of Vegas & Unity Group,which operates several malls in Delhi and Punjab. He observed that the average time spent by families has increased,driven by the creation of activity zones within malls. "Food and entertainment zones are doing extremely well while there is a stable growth in fashion brands," Choudhary added.
Restaurants like Cafe Delhi Heights, which has around 44 outlets across Indian malls, are experiencing a 10% rise in sales compared to last year. In contrast,standalone outlets are resorting to promotions such as extended happy hours to attract customers. Shriram PM Monga, co-founder of retail advisory firm SRED, noted that extreme weather is influencing consumer choices. "During periods of intense heat, air-conditioned malls gain a natural advantage," he remarked .
Monga emphasized that the increase in foot traffic is not just seasonal trend but reflects a broader shift in consumer behavior. He reported that mall footfalls can rise by 15-25% during peak holiday and high-temperature periods, leading to stronger sales for food and beverage and lifestyle brands .
As the summer progresses,the combination of heat and school vacations is expected to keep mall retailers busy. With consumers seeking comfort and entertainment,the trend of increased spending in these environments appears set to continue .
