The year gone by was one of expansions and fundraising for retail
IndiaRetailing Insights: The Indian retail sector in 2024 saw the opening of over 750 new stores and a total of Rs 12,000 crore raised, as per the data compiled by IndiaRetailing Insights.
The first half of the year was largely muted. Despite that, the industry displayed continued resilience through expansions across key regions, sectoral diversification, and a series of strategic partnerships and exits. Store additions registered a sharp decline in the year’s second half.
Total store openings in 2024
- Total stores opened: 752
- Total funds raised: Rs 12,000 crore
These figures demonstrate the retail sector’s growth with regional differences in store openings and fundraising activities. While store expansions remained strong, fundraising saw a significant dip in the latter half of the year, marking a mixed performance across months.
Regional breakdown of store openings
India’s retail sector saw diverse growth in terms of new store openings, with the South and West regions leading the charge. The breakdown is as follows:
- South India: 250 stores
- West India: 210 stores
- North India: 190 stores
- East India: 65 stores
The South and West regions were the front-runners in terms of store openings, with brands heavily investing in tier-1 and tier-2 cities. The North and East also saw significant expansions but at a slower pace.
Key store expansions and trends
The year saw a notable influx of domestic and international brands making their presence felt across India. Among the prominent fashion and lifestyle brands expanding their footprint were Zara, H&M, Levi’s, Tanishq, Caratlane, Snitch, and The Organic World. These brands expanded into untapped cities, focusing on regional markets to strengthen their omnichannel presence.
On the food and beverage front, Starbucks, Haldiram’s, Chalu Chinese, and AbCoffee emerged as major players with multiple openings across the country. Food brands have been focusing on high-footfall areas like malls, high streets, and airports to tap into the increasing demand for dining out and takeaway options.
Other brands with multiple store launches included Mokobara, which continued its push in the luggage and travel space, and CityKart, which focused on growing its presence in the value fashion market.
Fundraising in 2024
Fundraising in the retail sector experienced significant fluctuations in 2024. Early in the year, there was a strong influx of investments, with brands raising capital to fuel expansion plans. However, the activity dropped substantially in the second half, particularly in September when only Rs 448 crore was raised, marking a 750% decline from August’s Rs 4,000 crore.
Despite this slump, several brands and startups managed to secure significant funding to support their growth and future plans. Zepto, a quick-commerce unicorn, raised Rs 2,850 crore, bringing its valuation to $5 billion. Additionally, Baazar Style Retail raised Rs 250 crore, and PDS Ltd. secured Rs 430 crore through a QIP, while Zepto and Zoff were some of the key D2C players to attract investor interest.
Other funding rounds included investments in Pluckk, a fresh produce food-tech platform that acquired Upnourish, and Xolopak India, a sustainable packaging manufacturer preparing for an IPO. Homevista Decor & Furnishings also expanded through capital infusion, acquiring DesignCafe, showcasing the growth in the home and décor space.
Notably, the September fundraising slowdown was attributed to market volatility and a general reluctance by investors to fund high-risk ventures, leading to a cautious approach in subsequent months.
Notable Developments in Retail
The year 2024 witnessed a flurry of strategic partnerships, acquisitions, and market entries that underscored the dynamic nature of India’s retail sector:
- Carrefour made its return to India through a franchise agreement with Dubai’s Apparel Group.
- US-based HeyDude & Foot Locker entered India through a collaboration with Metro Brands Ltd.
- Swiggy, India’s leading food delivery service, moved closer to its IPO, filing updated draft papers to raise Rs 3,750 crore.
- FirstCry and Vishal Megamart went public.
- Malabar Gold & Diamonds announced plans to open 20 new showrooms globally as part of its international strategy.
Meanwhile, Zudio, a subsidiary of Tata Group, expanded its international footprint with its first store in the UAE and further plans to launch across the Middle East.
Exits were also a prominent feature in the year’s retail landscape. Spencer’s Retail announced its exit from the Delhi-NCR market, while Godfrey Phillips India decided to exit retail altogether, putting its 24Seven convenience store chain up for sale.
Looking ahead to 2025, the retail sector’s ability to adapt to market conditions, consumer preferences, and technological advancements will be critical. The rise of D2C brands, digital-first retail, and the continued expansion of global players will likely shape the next phase of growth, ensuring that India remains one of the world’s fastest-growing retail markets.
Shopping Centre launches in 2024
The sector also displayed growth in 2024, with shopping centres emerging as key contributors to the evolving retail landscape. According to a CBRE report, the first nine months alone saw an estimated absorption of 4.5 million sq. ft. of retail space, driven primarily by mid-range and value fashion brands, alongside continued success from luxury and D2C players.
The year witnessed significant mall launches across the country, including HiLITE Mall in Thrissur, PRM Centre Point Mall in Malda, and Lulu Malls in Kottayam and Kozhikode, catering to the growing demand for organised retail. Bengaluru, Delhi-NCR, and Mumbai accounted for 60% of the retail space absorption, reflecting strong urban demand, while tier-II cities also saw increasing retail traction.
Grade A mall supply in tier-I cities reached 1–1.5 million sq. ft., with developers integrating smart technologies and community spaces to enhance customer experiences. The robust demand for retail space has led to a rise in rental values across tier-I and tier-II cities, with projections suggesting retail leasing absorption of 6–6.5 million sq. ft. by year-end.
