Skip to main content

Setback to Ahmedabad's urban model? City malls witness 48% decline in footfalls, one of the highest in India

The mall which closed down
Are Ahmedabad’s malls, tom-tommed as an “example” of the city’s urban model, set to further lose their charm? It would seem so, if one goes by top industries body Associated Chamber of Commerce and Industry of India (ASSOCHAM) report, which says that Ahmedabad’s malls has seen one of the highest declines in “footfalls” in India, next only to Delhi-National Capital Region (NCR). As per an ASSOCHAM survey, Delhi-NCR recorded the highest decline in footfalls at city malls (49.5%) , followed very closely by Ahmedabad (48.2%).
Other cities that have seen a high fall in “footfall” are Chennai (46%), Mumbai (42%) and Hyderabad (39%), the survey results, released by ASSOCHAM, said. While roughly 250-300 malls came up in the country in the last two years, 80-85% of the spaces in these malls still lie vacant. In Ahmedabad, the situation has particularly taken from bad to worse, as few of the top malls recently closed their shops or reduced their capacity drastically. Several of them were built by offering them huge concessions, and without even necessary environmental clearances.
ASSOCHAM does not think that this is due to recession having overtaken the cities, but because “online shopping has proved especially harsh for shopping malls.” The survey was conducted in 10 cities-Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun. ASSOCHAM thinks, “Online shopping industry in India is fast catching on, not just in the larger metros but also in the smaller cities.”
The industry body estimates, things will only worsen for the malls this Diwali, when online shopping may increase by 350% as against the jump of 200% in August-September. The result is that, it says, “shopping malls have started feeling jittery as the footfalls in malls are likely to go down by 50-55%”. ASSOCHAM, however, does not provide inter-city comparison of how much has online actually caught up.
“During Diwali, Online shopping estimated to cross Rs 10,000 crore”, says ASSOCHAM, adding, “The online retailing to see the biggest flip ever in the history, going forward this trend will not only continue but it will grow by leaps and bounds. “At present the market is estimated at Rs. 12,000 crore and could cross Rs. 1,00,000 crore a year in India over the next three to four years”.
The survey, titled “Indian Online Retail Sales Surge in Festive Season”, reveals that there is more than a fivefold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, footwear are available at a cheaper rates and delivered at the doorstep within two to three days. According to ASSOCHAM secretary-general DS Rawat, “Whole new audience is connected 24x7 through their smart phones, tablets and other mobile devices which are leading to a gradual evolution of e-commerce”. 
ASSOCHAM said, e-commerce sales in August and September grew by 200% from the same months in 2013 (120%), with mobile sales booming 100%. “Consumers are turning to the internet savvy because of the fast and simple payment and delivery service. Online shopping is estimated to be up by 350% during the festive season than visiting bricks and mortar stores, adds its report”, it insisted, adding, “This festive season, shopping on ground has taken a back seat. Apart from convenience, rising fuel price, security reasons, online discounts and availability with abundance of choices are keeping consumers indoors”.

Comments

TRENDING

Dalit rights and political tensions: Why is Mevani at odds with Congress leadership?

While I have known Jignesh Mevani, one of the dozen-odd Congress MLAs from Gujarat, ever since my Gandhinagar days—when he was a young activist aligned with well-known human rights lawyer Mukul Sinha’s organisation, Jan Sangharsh Manch—he became famous following the July 2016 Una Dalit atrocity, in which seven members of a family were brutally assaulted by self-proclaimed cow vigilantes while skinning a dead cow, a traditional occupation among Dalits.  

Powering pollution, heating homes: Why are Delhi residents opposing incineration-based waste management

While going through the 50-odd-page report Burning Waste, Warming Cities? Waste-to-Energy (WTE) Incineration and Urban Heat in Delhi , authored by Chythenyen Devika Kulasekaran of the well-known advocacy group Centre for Financial Accountability, I came across a reference to Sukhdev Vihar — a place where I lived for almost a decade before moving to Moscow in 1986 as the foreign correspondent of the daily Patriot and weekly Link .

Boeing 787 under scrutiny again after Ahmedabad crash: Whistleblower warnings resurface

A heart-wrenching tragedy has taken place in Ahmedabad. As widely reported, a Boeing 787 Dreamliner plane crashed shortly after taking off from the city’s airport, currently operated by India’s top tycoon, Gautam Adani. The aircraft was carrying 230 passengers and 12 crew members.  As expected, the crash has led to an outpouring of grief across the country. At the same time, there have been demands for the resignation of Prime Minister Narendra Modi, Home Minister Amit Shah, and the Civil Aviation Minister.

Ahmedabad's civic chaos: Drainage woes, waterlogging, and the illusion of Olympic dreams

In response to my blog on overflowing gutter lines at several spots in Ahmedabad's Vejalpur, a heavily populated area, a close acquaintance informed me that it's not just the middle-class housing societies that are affected by the nuisance. Preeti Das, who lives in a posh locality in what is fashionably called the SoBo area, tells me, "Things are worse in our society, Applewood."

Global NGO slams India for media clampdown during conflict, downplays Pakistan

A global civil rights group, Civicus has taken strong exception to how critical commentaries during the “recent conflict” with Pakistan were censored in India, with journalists getting “targeted”. I have no quarrel with the Civicus view, as the facts mentioned in it are all true.

Remembering Vijay Rupani: A quiet BJP leader who listened beyond party lines

Late evening on June 12, a senior sociologist of Indian origin, who lives in Vienna, asked me a pointed question: Of the 241 persons who died as a result of the devastating plane crash in Ahmedabad the other day, did I know anyone? I had no hesitation in telling her: former Gujarat chief minister Vijay Rupani, whom I described to her as "one of the more sensible persons in the BJP leadership."

Whither SCOPE? Twelve years on, Gujarat’s official English remains frozen in time

While writing my previous blog on how and why Narendra Modi went out of his way to promote English when he was Gujarat chief minister — despite opposition from people in the Sangh Parivar — I came across an interesting write-up by Aakar Patel, a well-known name among journalists and civil society circles.

A conman, a demolition man: How 'prominent' scribes are defending Pritish Nandy

How to defend Pritish Nandy? That’s the big question some of his so-called fans seem to ponder, especially amidst sharp criticism of his alleged insensitivity during his journalistic career. One such incident involved the theft and publication of the birth certificate of Masaba Gupta, daughter of actor Neena Gupta, in the Illustrated Weekly of India, which Nandy was editing at the time. He reportedly did this to uncover the identity of Masaba’s father.

Why India’s renewable energy sector struggles under 2,735 compliance hurdles

Recently, during a conversation with an industry representative, I was told how easy it is to set up a startup in Singapore compared to India. This gentleman, who had recently visited Singapore, explained that one of the key reasons Indians living in the Southeast Asian nation prefer establishing startups there is because the government is “extremely supportive” when it comes to obtaining clearances. “They don’t want to shift operations to India due to the large number of bureaucratic hurdles,” he remarked.