As retail landscapes evolve, brands are rethinking their strategies on whether to establish themselves in malls or on high streets
It’s the age-old Sophie’s choice for retailers: malls or high streets for opening stores? A decade ago, choosing the right location was a gamble, driven more by instinct and luck than any real strategy. But those days are long gone.
Today, tech and data do the heavy lifting, telling brands not just what to open, but where and when to do it. Heatmaps, footfall trackers, and real-time consumer insights have taken the guesswork out of the game.
So what’s working now? Let’s break down the wins and trade-offs of both formats and explore which way the wind is blowing for today’s brands.
Why Malls Matter
- Controlled environment
Malls offer air-conditioning, clean restrooms, valet parking, and security which makes them family-friendly destinations with longer dwell times. Consumers often walk around malls simply to escape the scorching heat, which continues to rise year after year.
“High street formats thrive in European climates, but in most Indian cities, extreme summers can significantly impact footfall and sales, Connaught Place is a great example of this. Malls, on the other hand, offer a curated, climate-controlled environment where customers are more comfortable,” says Abhinav Kumar, Director & CEO of Brand Concepts Ltd.
- Footfall magnet
Malls naturally draw people in with their mix of experiential entertainment like cinemas, food courts, gaming zones, live events, and even seasonal décor.
Nowadays, it’s very occasional to find teens lining up at H&M after a movie, couples grabbing Starbucks after a stroll at the hypermarket, and parents having a meal while the kids go wild in Timezone. For retailers, this steady and varied crowd is gold.
“I believe malls make a lot of sense, especially from a footfall perspective,” says Sahil Bansal, Co-Founder of Fur Jaden, a new age luggage brand. “Malls offer consumers the chance to explore and compare different brands side by side and I think that’s an experience every shopper deserves. We are confident in the variety and value we provide, so we welcome the opportunity to be positioned alongside competitors and let the customer decide what best suits them.”
Striking a similar chord, Satyen Momaya, CEO of Celio India explains, “We are focusing our retail expansion in A+ grade malls, where 80-90% of our new stores are planned. Malls align with our core audience (ages 12–28) by offering an experiential environment all in one place. We go where our consumers are, and right now, that’s the mall.”
- Premium perception
Malls give brands the kind of upscale setting that’s hard to replicate on high streets, without the clutter of unorganised retail. Whether it’s MAC Cosmetics, Uniqlo, Swarovski, or a new entrant like Charles & Keith, the store looks more polished in a mall environment. The lightings, layout, and ambiance can contribute to a premium feel and these directly impact how people perceive the brand.
Retailers are increasingly preferring Grade A+ malls over other properties with the premiumisation of Indian retail. As per a Cushman & Wakefield report, these top-tier malls have maintained high occupancy levels, with vacancy rates averaging a low 3-4% in recent years.
- Mall-level marketing support
Malls host everything from influencer meets and Diwali decor contests to music gigs and kids’ fashion shows. Retailers get to ride this wave without planning everything solo.
For example, Lulu Mall, Kochi recently ran a Back to School campaign where shoppers could win backpacks and vouchers from Bata and Lifestyle, boosting both visibility and store walk-ins. Meanwhile, DLF Malls collaborate with lifestyle influencers during sale events and brands like ONLY, Vero Moda, and Nykaa Luxe get featured in reels, stories, and giveaways promoted by the mall, amplifying reach beyond their own followers.
Why High-Streets Matter
- Higher visibility:
High streets are often located in densely populated areas with heavy pedestrian traffic, giving brands natural visibility without additional investment in advertising.
MG Road, Bengaluru and Brigade Road are iconic high streets where fashion and electronics brands like Zudio, Levi’s, and Croma thrive due to consistent foot traffic from office-goers, tourists, and local shoppers. Connaught Place, New Delhi is another example with brands like Nike, FabIndia, and Apple reseller Imagine enjoying high visibility
“About eight years ago, I mostly shopped at malls like Bengaluru’s Forum Mall, then a central retail hub. Today, these malls feel limited in space, while high streets like Indiranagar and Koramangala have taken the lead. Brands are now filling not just main roads but inner lanes, eager to be part of that buzzing high-street environment,” says Ashish Shah, COO & Co-Founder of Pepperfry, a furniture and home decor retailer.
- Greater flexibility:
On high streets, retailers have more control over store design, display, operational hours, and discounting strategy, unlike malls where these are regulated.
The Souled Store, a D2C pop-culture fashion brand, is now opening several high street stores that reflect its quirky aesthetic and Indian culture, after initially focusing on malls.
“Over the next few years, we expect high streets to take center stage in our expansion strategy. This is driven by our goal to open larger stores, which are easier to accommodate on high streets compared to malls,” says its Co-Founder, Harsh Lal.
Roastea, a coffee and tea-focused café, struggled to position itself near fine-dining outlets in malls initially, as many potential customers preferred premium dining options.
“Personally, I prefer high street locations, because they offer far more creative flexibility in terms of real estate. For example, our Koramangala outlet’s bungalow-style layout, open spaces, and vibrant street vibe let you design more engaging and customer-friendly setups. The energy there benefits both customers and staff,” says Co-Founder, Chaitanya Bhamidipaty.
- Lower cost of entry and operation:
While high-street rents in top-tier locations can be steep, they often lack the CAM (common area maintenance) charges and revenue share agreements that malls impose. Retailers may also negotiate more easily with landlords for custom lease terms.
“We find high streets and even residential areas far better suited than malls for our business,” says Ankit Chona, Founder & MD of HOCCO, an ice cream and restaurant brand from the Chona family.
“Ice cream is largely an impulse product, but a significant portion of our sales, nearly 40% to 50%, actually comes from take-home purchases and home deliveries. That’s much easier to manage from neighbourhood outlets than from malls, where logistics can be challenging. On top of that, mall rentals are nearly double those of high street locations, making the latter far more viable for us.” Chona adds.
Balanced Path Forward
When opinions are divided between malls and high streets, now, many retailers are taking a hybrid approach, confidently choosing to invest in both.
One such example is newly launched fashion brand Coyu, co-founded by Mohit Gupta and Mukesh Bansal, which is pursuing a dual-location strategy.
“We believe our customers are present in both malls and high streets. For a new brand, malls offer the advantage of established footfall and quick exposure to a diverse audience, however high street offers a more premium, open-format experience,” says Gupta.
Shah of Pepper Fry echoes this view point. “If you look at the last decade, the early years were largely mall-centric. But before that, India’s retail ecosystem was primarily high-street driven. Over the past two to three years, the landscape has balanced out, with both formats evolving as strong options. As India reaches retail equilibrium, brands are simply going where the customers are.”
From retailers’ assertions, it’s clear they are aware of which space they want to foray into, with the help of data integration and consumer insights. The right choice depends heavily on a brand’s stage of growth, product category, target consumer, and geographic priorities.
Bhamidipaty of Roastea shares that, “Malls often reserve prime spots for established brands, making it harder for newer ones to gain visibility. Building strong equity on the high street can change that, as mall operators may then offer better terms. High streets are ideal for building brand identity early on, while malls work better for scaling once brand recall is strong.”
In 2025, smart retailers are no longer choosing between the two. The winning formula lies in balancing the polished pull of malls with the organic push of high streets.
The post Malls vs high streets: Where are retailers opening stores in 2025? appeared first on India Retailing.
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