Apparel, F&B Account for 54% of Total Retail Leasing in H1 2025 in Top 7 Cities

Mumbai, July 24, 2025: Millennials, Gen Z and Gen Alpha are reshaping the 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-strategising their expansion. Latest ANAROCK research finds that apparel and F&B together now represent 54 per cent of total retail leasing (around 2 mn sq ft) in H1 2025 across the top seven cities against 37 per cent in 2023.

Anuj Kejriwal, CEO and MD, ANAROCK Retail, says, “Individually, the leasing share of apparel, currently the top leasing category, has declined from 42 per cent in FY19 to 37 per cent in FY25, and is expected to fall further to 32 per cent by FY30. F&B, on the other hand, saw its leasing share increasing from 8 per cent in FY19 to 12 per cent in FY25 with projections to rise further to 16 per cent 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 per cent leasing share back in FY19, jewellery segment leasing saw its share rise to 5 per cent in FY25 with projections to reach 13 per cent in FY30,” says Kejriwal.

Of net retail absorption of over 2 MSF across the top seven cities in H1 2025, nearly 33 per cent was leased by apparel brands, 21 per cent by F&B brands, 16 per cent by entertainment zones and 11 per cent by home and lifestyle brands.

Paradigm Shift

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, personalisation and emotional connection more.

“We can see an unequivocal preference for quick, customised and valuable experiences clearly influenced by digital platforms and social media,” adds 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 revolutionise the 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.