By Accommodation Times News Services
Shops are no longer good investment. A huge inventory of shops are lying vacant even though colonies and residential townships are occupied. No takers of shops. A retailer first lost to mall mania in the country. The success of mall made retailer close shops as people wanted to shop with good environment and window shopping started in a big way. In all 1200 malls of average 2 lakh sq ft was finished and occupied in 2007 to 2010.
Now ever since e-commerce is giving great discounts to lure customers along with mobile apps which is burning investors money to lure customer’s loyalty by giving almost 75% discounts on almost every item including medicines, made shops shut their shutters.
Investors of Shops are looking for selling at any cost including mall spaces becuase of growing e-commerce habits of customers. This Dewali, electronics to gagets, provisions to cloths, mobiles to computers, everything is 50% cheaper on e-commerce sites. Big investments are pouring in by Snapdeal, Amazon, Flipkart and other websites.
Local business is effecting because they have to pay VAT but recent High Court judgement says that online business or e-commerce need not pay VAT. Hence e-commerce trading investing huge in logistics and distribution channels. Warehousing business is flourishing and need for storing in local market is increasing. Franchisee business also rising as localbuniya type business needs franchisee model to cater the need.
Large markets like Metro or APMC, govt haat and mandi for vegetables and grains are also looking for shift to e-commerce. Fruits and pulse market will soon shift to e-commerce.
Looking at the trend, neither new customers coming to buy shops nor investors are keen to keep their inventory for a long. A new era of real estate starting in commercial spaces.