Fashion hub Khan Market sees international brands leave as rents continue to rise
Factors including rising rent and declining footfalls in Delhi’s premium shopping hub Khan Market have prompted numerous labels leave the area. The once sought after destination for Indian and international fashion brands now faces heightened competition from more suburban areas.
“Khan Market is losing [its] sheen because of high rentals,” an anonymous brand executive whose business left Khan Market told India Retailing. “Premium brands are not making money because of high rents… Footfall for apparel is quite low. Also, rents have become highly non-sustainable. Hence [it] doesn’t make sense to run high street retail for apparel [there].”
Cosmetics brand Mac has exited Khan market recently, despite having no plans to halt its India expansion. Womenswear brand Vero Moda also closed down its store in the area, presumably as its performance did not justify the high rents.
Before the beginning of the pandemic, Khan Market was listed by property consulting business Cushman & Wakefield in its top 20 of most expensive retail locations globally. The area made the top 20 in its report on 2019 before lockdowns saw stores classed as ‘non-essential’ shut their doors for months on end.
However, despite high rents, some brands still have faith in the shopping district. British fashion and lifestyle retailer Marks & Spencer plans to keep its Khan Market store running and continue to modernise it to fit with evolving consumer tastes, IndianRetailing reported.
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