Future Group to avoid opening stores in places with mall oversupply

The Future Group will now refrain from opening stores in areas which were seeing an oversupply of retail properties.

SG Road in Ahmedabad and LBS Marg in Mumbai have seen a sharp increase in malls, leading to an oversupply of properties. MG Road in Gurgaon has 10 malls operational within a one-kilometre radius, with three of them without any tenants.

According to estimates, at least 750 malls are being built in the country and retailers in cities such as Mumbai, Delhi, Chennai see cannibalisation due to presence of retailers who offer the same goods and services.

Retailers such as Aditya Birla Retail, Future Group, Reliance Retail and Spencer’s Retail have either closed down or shifted hundreds of stores in the past to check losses. Retailers such as Birla Retail have announced that they want to make stores profitable in the first year of operations.