The New Face of Malls: From Footfalls to Fulfilment

A conversation with Mukesh Kumar, CEO Malls & Business Head- K Raheja Realty (Infiniti Mall) on how Indian shopping malls are evolving in the age of omnichannel retail, digital influence, and D2C brand expansion.

How is the role of shopping malls in India evolving, especially with the rise of omnichannel retail and D2C brands?

The omnichannel journey actually began several years ago. Initially, there was a rush, around 2014–15, to catch up with e-commerce giants such as Amazon, Flipkart, and Myntra. But we soon realised something important: we simply couldn’t compete with them on scale. They can host thousands of brands online, while a mall has a limited number of physical doors.

So, we pivoted. Rather than trying to be like them, we began focusing on what we do best: offering experience. That’s the core strength of a mall. Sure, we explored digital integrations: “click and collect,” e-catalogues, and store-to-home deliveries but ultimately, the biggest differentiator for us was experiential retail.

We helped our retail partners enhance in-store experiences, enabling things like order fulfilment from nearby stores if a size or SKU wasn’t available locally. That model works well. And while I personally prefer driving traffic to the mall, even delivery from F&B tenants is something we now support. The idea is: let consumers access your offerings wherever they are, but make sure that the offline experience is unmatched.

And how has the rise of D2C brands changed this equation?

That’s a major shift we’ve seen especially in the last two years. Many D2C brands initially operated purely online, but soon realised that for visibility and trust, physical presence matters. You can see products online, but in a mall, you can touch, feel, try—engage all your senses. That interaction converts.

So now, a significant number of these digital-first brands are setting up stores in malls. And it’s not just start-ups; larger players are acquiring D2C labels and bringing them offline. Take Nykaa, The Souled Store, or Lenskart. All of them began online but now have thriving offline footprints.

Even brands like Nykaa and Xiaomi have evolved from online-only to omnichannel formats. Why? Because they understand that offline drives both discovery and credibility. Moreover, these brands use their online data like which pin codes generate most sales to identify optimal locations for their physical stores. It’s highly strategic.

So, are malls becoming a showcase channel for all types of brands—D2C or otherwise?

Exactly. Malls are now platforms, not just retail spaces. For online brands, being in a mall is no longer optional—it’s essential. It builds visibility, legitimacy, and even aids fundraising because investors want to see real-world traction.

Today, brands know that they can’t remain purely online or purely offline. You must be where your consumer is. That’s why malls are increasingly becoming strategic retail destinations, not just sales centers.

How have consumer behaviours changed in this landscape?

The nature of buying has changed. It’s no longer just need-based. Most purchases, around 75–80%, are impulse or experience-driven. Whether it’s online or offline, people buy because they want to, not because they need to.

You go to a mall, walk with your family or friends, and something catches your eye—you buy it. You’re on your phone, feel like treating yourself—you buy something online. That’s how today’s consumer thinks.

Given this shift, what strategies are you implementing to stay relevant in an increasingly digital-first retail environment?

We may be in the offline business, but we’ve integrated digital tools to remain relevant. First, we focus on social media to engage customers where they are. We also work closely with retailers to ensure that consumers can access whatever product they want even if it's not in-store through integrated systems.

We monitor what's trending, which D2C brands are gaining traction, and then bring them into the mall. Data from online sources helps us stay ahead in terms of curation and engagement.

How has your tenant mix evolved over the years?

The change is quite dramatic. Earlier, fashion dominated the mall mix, and F&B and entertainment together made up just about 10%. Today, those categories account for nearly 30%, with entertainment alone growing threefold.

Entertainment includes theatres, gaming arcades, trampoline parks, and even niche experiences like early learning centres and pickleball. Food, meanwhile, has become a lifestyle habit. People eat out every second or third day. That means food courts, fine dining, and casual eateries bring footfall more frequently than retail.

Another evolving segment is services—salons, spas, and skincare clinics. These are lifestyle anchors now, bringing in consistent traffic.

What kind of support are you offering to homegrown or new-age Indian brands?

We actively support D2C and Indian brands. Most D2C brands are inherently homegrown. They’re getting prime spaces in our malls.

In terms of mix, it varies. If you look at fashion brand count, it’s about 50-50 between Indian and international brands. But by space or actual floor area, domestic brands occupy more.

Some international-looking formats like Lifestyle are technically Indian, even though they retail global labels. Ethnic Indian brands including Biba, Aurelia, W, Global Desi, Ritu Kumar, and AND are aggressively expanding, especially in fusion and western wear. Ten years ago, this space was dominated by global players—today, Indian labels are giving them serious competition.

Are brand choices and formats also evolving across different geographies—say North vs South or metros vs Tier-II towns?

Absolutely. There is no one-size-fits-all model. In North India, western wear dominates. In the South, consumer preferences lean towards fusion or ethnic wear.

Even within a city like Mumbai, shopping preferences in Bandra differ from those in Borivali. Food choices, entertainment needs, fashion tastes—all are hyperlocal. Mall curation has to be location-specific.

How have footfalls changed since the pandemic?

Post-pandemic, footfall has not just recovered, it has exceeded pre-COVID levels. We’ve seen 5–6% annual growth consistently. What we were doing in FY19–20 has now been surpassed.

What’s the current occupancy rate across your properties?

For A-grade malls, we’re running at 98–99% occupancy. Vacancies aren’t due to lack of demand—they’re often just transitional churn.

Across the industry, if you include all malls irrespective of grade, the average occupancy is around 77–78%. This includes strata-sold models, which typically see higher vacancy post their initial churn.

What about mall retailing in Tier-II and Tier-III cities? Are they showing promise?

Definitely. It all comes down to who is developing the project. Developers like Phoenix, Lulu, DLF, and Inorbit are expanding into these cities, and their malls see excellent response.

Land and development costs are significantly lower in Tier-II/III cities, making the investment more viable. But design, scale, and curation still matter. If done well, these malls become the go-to destinations for their regions.

Is sustainability becoming a priority in mall operations?

It's no longer a choice—it’s the way forward. We’ve integrated several sustainability initiatives: water recycling, composting wet waste, solar power, sensor-based lighting, energy-efficient HVAC systems, and plastic reduction.

Sustainability is embedded in both our construction and operations now. It’s part of the DNA.

What are your key investment priorities for the next 3–5 years in terms of expansion, upgrades, or digital transformation?

On digital transformation, the work is ongoing. Tech evolves every two years—we need to stay ahead. It’s not capex-heavy, but it requires constant attention.

In terms of expansion, we currently operate two malls in Mumbai and are exploring new markets. We hope to finalise at least two new locations within the next year.

Upgrades are also crucial. We renovated our Andheri mall during COVID, and our Malad property is now being upgraded. The idea is to keep the experience fresh and competitive.