Shopping @ Malls is a new craze in the Indian society. But according to the a recent survey by retailers association, retailers admitted that they have not performed well in the Indian malls and has led to widespread failure of merchants at malls.Experts and Analysts attributed the sharp rise in Real Estate prices which is compelling developers to charge high rentals. Unplanned development of malls in most cases has failed to attract "enough business" for retailers putting their bottomline under severe pressure.
Mr. Kishore Biyani, MD of Pantaloon Retail India Ltd said,
There is a defnite clash of interest between mall developers and retailers. It's a big problem in India as barring a few, most developers are charging high rentals without really creating enough business opportunity for the retailers. This is hampering the success of malls.Mr. Hars Neotia of Ambuja Realty said,
Retail margins are not as high as they were. Besides real estate prices are also rising.. This can hamper the success of the malls unless developers and retailers plan the project well.Mr. Biyani's Future Group runs the Central Malls across many cities in India.
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