Struggling malls become franchisee partners to brands

With quality retail spaces becoming a rarity for most brands, mall

developers are forced to now turn franchisee partners to stop them from making an exit. With low footfalls and falling consumer sentiment affecting the future of most malls, developers are putting in every effort to keep the momentum alive.

Experts say, mall developers are left with no choice but to invest in the retail business themselves with an extra investment. And revenues from rents would fall as they would end up with unoccupied retail spaces. But without good brands’ presence, malls cannot attract footfall so they are luring the brands to continue with store presence in order to keep the mall an attractive destination for the consumer.

Even profitable mall developer is exploring the franchisee option since they see positive earning through sales of a brand that attracts footfall. Prominent mall developers like DLF and HDIL have been working on this option. Industry experts point out that real estate developers and industry players point out that the slowdown in the consumer business, and the huge mismatch between demand and supply, have led mall owners to try new options.