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

When Pakistanis whispered: ‘end military rule’ — A Moscow memoir

During the recent anti-terror operation inside Pakistan by the Government of India, called Operation Sindoor — a name some feminists consider patently patriarchal, even though it’s officially described as a tribute to the wives of the 26 husbands killed in the terrorist strike — I was reminded of my Moscow stint, which lasted for seven long years, from 1986 to 1993.

Despite Hindutva hold claim, 18% Hindus in US don't want to be identified with Hinduism!

Scanning through news items on the Google News app on my mobile — which is what I do almost every morning — I came across a story published on India.com, which I found somewhat misleading. The headline said, "Muslim population drops significantly in THIS country as over 25% Muslims leave Islam due to…, the country is…"

Tracking a lost link: Soviet-era legacy of Gujarati translator Atul Sawani

The other day, I received a message from a well-known activist, Raju Dipti, who runs an NGO called Jeevan Teerth in Koba village, near Gujarat’s capital, Gandhinagar. He was seeking the contact information of Atul Sawani, a translator of Russian books—mainly political and economic—into Gujarati for Progress Publishers during the Soviet era. He wanted to collect and hand over scanned soft copies, or if possible, hard copies, of Soviet books translated into Gujarati to Arvind Gupta, who currently lives in Pune and is undertaking the herculean task of collecting and making public soft copies of Soviet books that are no longer available in the market, both in English and Indian languages.

Beyond Indus water treaty suspension: A 'nationalist' push despite harsh climate realities

The suspension of the Indus Water Treaty (IWT) appears to have pushed the middle classes, at least in Prime Minister Narendra Modi's home state, Gujarat, further towards what the powers-that-be would consider—a "positive" direction. As usual, during my morning walk, I tried talking with a neighbour about what impact it would have. Ignoring what is widely considered a "security lapse," this person, who had just returned after buying milk, compared the Modi move with Trump.

Adani Group a key player in Indo-Israel defence cooperation: Tel Aviv daily

Said to be one of the most influential Israeli dailies, "Haaretz" (literally: News of the Land) has identified the Adani Group—known to be close to Prime Minister Narendra Modi—as one of the key Indian business houses engaged in defence cooperation with Israel. Pointing out that India supplied the Israeli military with Hermes 900 drones, the daily reported that this advanced aerial vehicle came off “the production line in a factory set up in Hyderabad, as part of the cooperation between the Israeli Elbit and India's Adani Group.”

A sector under siege? War and real estate: Navigating uncertainty in India's expanding market

I was a little surprised when I received an email alert from a top real estate consultant, Anarock Group , titled "Exploring War’s Effects on Indian Real Estate—When Conflict Meets Concrete," authored by its regional director and head of research, Dr. Prashant Thakur. I had thought that the business would wholeheartedly support what is considered a strong response to the dastardly terrorist attack in Pahalgam, Operation Sindoor.

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.

Environmental concern? Global NGO leads campaign urging banks to cut ties with Odisha steel project

A decade after the withdrawal of the South Korean multinational POSCO from Odisha following large-scale protests, questions remain about whether India-based JSW Steel, which took over the project, can successfully revive the 13.2 million tonnes per annum (MTPA) steel plant and coal-fired power plant. POSCO initiated the project in 2005 but exited in 2017 due to sustained local opposition.

Irrational? Basis for fear among Hindus about being 'swamped' by Muslims

I was amused while reading an article titled "Ham Paanch, Hamare Pachees", shared on Facebook, by well-known policy analyst Mohan Guruswamy, an alumnus of the John F. Kennedy School of Government, Harvard University, and the Graduate School of Business, Stanford University. Guruswamy, who has also worked as an advisor to the Finance Minister with the rank of Secretary to the Government of India, seeks to probe, as he himself states, "the supposed Muslim attitude to family planning"—a theme that was invoked by Narendra Modi as Gujarat Chief Minister ahead of the December 2002 assembly polls.

Olympics ready? Overflowing gutters in Amit Shah's high profile constituency: Vejalpur, beyond

A few days ago, I was talking to a close acquaintance who used to live in Bawla, a small town about 35 km west of Ahmedabad. It's an industrial hub with rice processing mills, cotton ginning units, and pharmaceutical companies. The acquaintance, from a very ordinary middle-class background, lived there because his son worked in one of the major pharmaceutical units nearby. However, he recently moved to a housing society in Ahmedabad, and I asked him why.

Search This Blog