Tuesday, December 3, 2024

Oulet Mall in Punjab

Outlet Malls: Punjab’s Post-COVID Retail Revolution

Post-COVID, Punjab has witnessed a boom in outlet malls, reshaping its highways with a frenzy of construction. Drive along any highway, and you'll spot malls popping up in what feels like every nook and corner. It’s as if Punjab received a master plan titled, “Mall Mania 101.”

What Are Outlet Malls?
Outlet malls are where brands sell their products at tempting discounts, typically ranging from 30% to 60%. They’re the holy grail for bargain hunters who love their labels without blowing the budget.

The trend kicked off with HG Eaton Plaza, a sprawling 50-acre property featuring retail, food, entertainment, a hotel, a cinema, and even a lake! Soon after, malls like NH-7, Factory Outlet Manawala, Green Square, Amarya Emporio, and Eastwood followed, sparking a retail frenzy. Today, nearly 90 similar projects are underway, transforming Punjab’s highways into a retail battleground.

Highways and Shopping: A Perfect Pairing?
Developers bet big on food plazas to draw travelers. The strategy? Stop for a snack, stay for the shopping. After all, who can resist a 50% off sign after a plate of chole bhature? Food giants like McDonald’s, KFC, Domino’s, Starbucks, Haldiram, Bikanerwala, and local legends like Jalandhar Haveli and Gopal Sweets are cashing in, demanding premium placement fees. Middlemen are busy minting commissions, while developers splurge on glitzy interiors to keep the buzz alive.

The Punjabi Love Affair with Retail Therapy
Punjabis are known for their zest for life, love for food, and obsession with brands—be it clothes, shoes, or SUVs. Flashing labels is almost a cultural pastime. No surprise these outlet malls are thriving. Levi’s jeans or Skechers at half price? Sold! Though, let’s be real—Punjabis see these as “desi brands.” They’re yearning for more premium names like Calvin Klein, Tommy Hilfiger, Versace, and Armani Exchange to take the experience up a notch.

But Here’s the Catch
The economics of highway malls isn’t all rosy. Projects closer to cities enjoy steady footfalls, but those farther out (12–20 km) struggle. With scorching summers and freezing winters, many shoppers prefer the air-conditioned comfort of urban malls. Add the convenience of online shopping, and it’s a tough sell: why drive 20 km when you can shop in pajamas from your couch? Meanwhile, full-priced urban stores face their own headache—competing with their discounted highway cousins. Zirakpur’s outlet malls, anyone?

Why the Boom?
Cheaper land and ancestral properties are key drivers. Developers are building and selling fast, backed by creative financing like rental capitalization methods (4–7%). The abundance of unaccounted money keeps the investment cycle churning.

The Future of Outlet Malls
Sustainability is the big question. Can these malls thrive as shopping habits evolve? City-proximate projects seem secure, but highway malls will need constant innovation—fresh brands, strategic placement, and a touch of creativity. Otherwise, they risk ending up like Gurgaon’s MG Road malls, where half the spaces sit vacant, waiting to become offices. For highway malls, even that pivot may take years.

For now, Punjabis are enjoying the ride: good food, great deals, and a dash of retail therapy at every highway turn. Who wouldn’t love a shopping spree after a lassi break?

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