Millennials, Gen Z and Gen Alpha are reshaping India's retail landscape with what they value and expect from the brands they patronize. Convenience rules the roost with the rise of online shopping and quick commerce.
Amid these changing consumer dynamics, retail brands are re-strategizing their expansion - latest ANAROCK research finds that apparel and F&B together now represent 54% of total retail leasing (approx. 2 Mn sq. ft.) in H1 2025 across the top 7 cities, against 37% in 2023.
Anuj Kejriwal, CEO & MD - ANAROCK Retail, says, "Individually, the leasing share of apparel - currently the top leasing category - has declined from 42% in FY19 to 37% in FY25, and is expected to fall further to 32% by FY30. F&B, on the other hand, saw its leasing share increasing from 8% in FY19 to 12% in FY25, with projections to rise further to 16% in FY30."
Apparel brands' drop in leasing share tracks that of other value-buy categories like hypermarkets. They face stiff competition from e-commerce which is further compounded by the growing traction of quick commerce.
Contrastingly, backed by changing consumer preferences, categories of high-value consumption like beauty and wellness, F&B, sports, and jewellery have been gaining traction across malls in the last few years. "From a very modest 2% leasing share back in FY19, jewellery segment leasing saw its share rise to 5% in FY25, with projections to reach 13% in FY30," says Kejriwal.
Of net retail absorption of over 2 Mn sq. ft. across the top 7 cities in H1 2025, nearly 33% was leased by apparel brands, 21% by F&B brands, 16% by entertainment zones, and 11% by home & lifestyle brands.
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The data clearly shows how Indian retail is realigning to today’s customers' habits and preferences. While previous generations valued brand loyalty, reliability, and word-of-mouth recommendations, millennials and Gen Z value convenience, personalization, and emotional connection more.
"We can see an unequivocal preference for quick, customized, valuable experiences clearly influenced by digital platforms and social media," says Kejriwal. "This change is pushing retail beyond traditional stores to tech-enabled, customer-focused formats. The aspirations of today's tech-savvy, fast-paced consumers is the key to retail success now."
As AI, automation, and sustainability imperatives revolutionize our world, retailers and retail stores need to do more than just sell. They need to give meaningful connection, flexibility, and alignment with what today's customers believe in, and expect.
