Rise of Premium Retail Spaces: Why Brands Prioritize Experience-Driven Stores

New Delhi, March 11, 2025: The retail landscape has undergone significant transformations globally, driven by evolving consumer preferences and technological advancements. In India, the retail sector has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s gross domestic product (GDP) and around 8 per cent of employment.

Besides, there is a great deal of desire among multinational corporations to take advantage of the consumer base in India and to enter the market first. Nearly 60 shopping malls encompassing a total retail space of 23.25 million sq. ft are expected to become operational during 2023-25. As per Kearney Research, India’s retail industry is projected to grow at 9 per cent over 2019-2030, from $779 billion in 2019 to $1,407 billion by 2026 and more than $1.8 trillion by 2030. These statistics underscore a dynamic shift in consumer behavior, with a clear inclination towards immersive and experience-driven retail environments, particularly in Tier I cities.

Further, brands are prioritizing experience-driven stores as consumer preferences shift towards immersive and interactive shopping environments. Engaging sensory experiences, such as interactive displays, live demonstrations, and themed store designs, enhance customer engagement, making in-store visits more compelling. Advanced technologies like AI-powered recommendations, AR/VR try-ons, and smart displays further elevate the shopping journey, offering seamless integration between digital and physical touchpoints.

Pankaj Jain, Chairman and CMD, SPJ Group, says, “India’s retail sector is witnessing unprecedented growth, with regions like Delhi-NCR emerging as key hubs for premium and experiential shopping. As brands expand their presence to evolving consumer demands, the need for a comprehensive retail that encompasses shopping, dining, entertainment as one-stop destination for all family lifestyle needs is on the rise. Therefore, strategically designed retail spaces and mixed-use developments have become the new talk of the town, seamlessly integrating a holistic experience under one roof. In Gurugram, where the demand for premium retail is surging, developers are aligning their projects with this trend. At SPJ Group, we see this as an opportunity to create dynamic retail ecosystems that not only attract top-tier brands but also deliver immersive, experience-driven environments that keep consumers engaged and returning.”

Moreover, personalization is now at the core of retail strategies, with brands leveraging data to tailor experiences, leading to higher customer satisfaction and conversions. The rise of omnichannel retailing has also reinforced the importance of physical stores, not just as sales points but as storytelling hubs that strengthen brand identity and drive online purchases. For luxury and premium brands, exclusive retail spaces play a pivotal role in maintaining brand prestige, providing bespoke services, and creating aspirational shopping experiences that digital platforms alone cannot replicate.

Harsh Gupta, CEO, Sundream Group, said: “With evolving consumer preferences, retail spaces are transforming into a seamless blend of shopping and leisure. Experience-driven stores are the future, and premium brands seek prime locations with high footfall and tech-enabled, dynamic spaces. At Anthurium Noida, we are redefining retail leasing by offering AI-ready infrastructure and a thriving commercial ecosystem. Our commitment is to create a future-ready retail hub where customers don’t just shop but engage, explore, and connect with brands in meaningful ways.”’

Ajendra Singh, Vice-President (Sales and Marketing), Spectrum@Metro, says, “Today’s retail is no longer just about products; it’s about storytelling and brand immersion. Especially, the mall culture is evolving rapidly, with premium brands elevating the retail experience through immersive and interactive store formats. Top-tier brands seek dynamic spaces that enhance customer engagement. At Spectrum@Metro, we are curating next-generation retail destinations that offer brands the perfect platform to showcase their identity through personalized experiences, interactive zones, and digital integrations. By fostering a vibrant and experiential shopping environment, we ensure increased footfall, deeper brand connections, and sustained consumer interest.”

Thus, the future of retail spaces is set to be defined by experience-driven environments, where premium locations play a crucial role in enhancing customer engagement. The rise of high-street retail and luxury malls, coupled with the integration of AI, AR/VR, and omnichannel strategies, is transforming how brands connect with consumers. Moving forward, the industry will adapt to changing consumer demands by embracing sustainability, digital innovation, and exclusivity, ensuring that premium retail spaces remain at the forefront of the shopping experience.