India’s retail sector is seeing a renewed focus on malls, with leasing activity in Q2 2025 rising sharply even as high street leasing fell by 26 per cent. Malls accounted for 45 per cent of total leasing, the highest share in five quarters, underscoring the growing appeal of structured, experience-driven retail spaces.
E-commerce continues to hold immense untapped potential, with only 20–25 per cent of India’s 850 million internet users shopping online. McKinsey projects this share to rise significantly as new business models, category expansion, and tier-two and tier-three city adoption drive growth.
Organised retail revenue likely rose 15–17 per cent in Q1, led by value fashion and food and grocery, while FMCG, steel and cement saw modest volume-driven growth. Nestlé India has also expanded its branded Retail ONE kiosk network to 1,000 units across high-footfall locations, signalling a greater push into out-of-home consumption.
At the same time, the India-UK FTA is paving the way for more British brands to enter the market at competitive prices, intensifying competition in beauty, food and premium categories. Meanwhile, fintech-led digitisation is beginning to address the ₹20 lakh crore kirana credit gap, enabling small retailers with easier access to formal credit and supply chain financing.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Indias retail focus returns to malls as high street leasing falls 26% in Q2 2025
India's retail sector has shifted its focus to malls again as leasing of high streets witnessed a 26 per cent quarter-on-quarter decline in the second quarter of 2025. According to the latest report by Cushman & Wakefield Malls accounted for 45 per cent of leasing volume in Q2 (1.01 MSF) - a 42 per cent q-o-q rise, and the highest mall share in the past five quarters, signaling growing interest in experience-driven, structured retail formats.
A McKinsey & Company report indicates significant growth for India's e-commerce sector. Currently, only 20-25% of Indian internet users shop online, but this is expected to rise substantially. E-commerce accounts for 7-9% of total retail sales, projected to more than double by 2030, driven by new business models, expansion into new categories, and rising demand from tier-two and tier-three cities.
3. India Inc's Q1 revenue growth estimated at 4-6 pc: Crisil Intelligence
Organised retail revenue likely rose 15-17 per cent in the first quarter, led by the value fashion and food and grocery segments, as per Crisil Intelligence. Revenue expansion in the steel, cement and FMCG sectors was likely driven by volume growth of 7-9 per cent, 3-4 per cent and 4-5 per cent respectively.
4. Nestlé’s branded retail points face a plethora of new challengers
Nestlé Professional, the out-of-home business unit of Nestlé India, has expanded its Retail ONE branded food kiosk network to 1,000 units across the country. Nestlé Professional, the out-of-home business unit of Nestlé India, has expanded its Retail ONE branded food kiosk network to 1,000 units across the country. The network comprises Nescafe Corners, Maggi Hotspots, and Kitkat Break Zones, located in high footfall areas such as educational institutions, healthcare centers, and travel hubs.
5. Choices widen: More British brands in mix
From angrezi make up and beauty creams to chocolates, Indians looking to shop for more foreign brands may soon be spoilt for choice. Following the FTA with UK, more British brands are expected to launch in India while companies already present in the market are likely to expand their business. This is essentially because with reduced tariffs, brands will be able to price their products more affordably, stepping up competition against a slew of global and local brands already selling in India and widen their set of consumers.
6. How digitisation can bridge India's Rs 20 lakh cr kirana credit gap
India’s roughly ₹20 lakh crore credit gap for its ~13 million kirana stores is driven by their heavy reliance on informal lending and limited access to formal financing. It argues that digital lending platforms and supply‑chain/fintech solutions, especially eB2B networks, are increasingly filling this void by offering collateral-free digitised credit, streamlined procurement, and inventory financing to empower small retailers.
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