3 days ago
Indian Malls Shift Toward Food, Entertainment and Experiences
Indian malls are becoming places to spend time, not just places to shop.
More mall space is now being used for restaurants, cinemas, games and fun activities.
These categories occupied about one-third of mall space in the first half of 2026.
Entertainment grew especially quickly, while clothing stores remained the biggest category.
Large department stores and hypermarkets lost much of their space.
Mall operators say people want to eat, watch movies and enjoy activities with family and friends in one visit.
Online shopping also pushed malls to offer experiences that websites cannot provide.
Some family attractions can keep visitors in malls for several hours.
New malls may dedicate more than half their space to food and entertainment.
Food and beverage plus entertainment occupied about 32% of Indian mall leasing space in H1 2026, up from roughly 20% in 2020.
Entertainment’s share more than doubled from 8% to 17%, while F&B increased from 12% to 15% over the same period.
Department stores and hypermarkets saw their share fall sharply from 14% in 2020 to 4% in H1 2026.
Apparel remained the largest mall category, accounting for 33% of leasing space in H1 2026 versus 35% in 2020.
Developers are expanding restaurants, cinemas, gaming, immersive attractions and other experiences to increase footfall, dwell time and repeat visits.
- Who
- Indian mall developers, retailers, food and beverage operators, cinemas and entertainment companies, including Anarock Group, DLF Retail, LuLu Group India, PVR INOX, KidZania India and TEEG India.
- What
- Malls are allocating more space to food, entertainment and immersive experiences while apparel remains the largest category.
- Where
- Shopping malls across India, including properties in the National Capital Region, south India, Lucknow and Gurugram.
- When
- The comparison covers 2020 to H1 2026, with notable changes following the 2022 reopening surge and a 2025 rise in F&B share.
- Why
- Changing consumer expectations and competition from online shopping are prompting malls to attract visitors more frequently and keep them there longer.
Experience-led mall strategy
Retail-anchor perspective
What should drive mall visits?
Experience-led mall strategy
Mall operators and entertainment businesses say restaurants, cinemas, gaming and immersive attractions increase footfall, dwell time and repeat visits, especially as online shopping handles routine purchases.
Retail-anchor perspective
Retailers and mall executives say fashion and other shopping categories remain important; apparel still occupies the largest share of mall leasing space and is not disappearing.
How much space should experiences receive?
Experience-led mall strategy
Anarock expects future malls to allocate more than half their space to non-traditional retail, while some operators already assign large shares to F&B and entertainment.
Retail-anchor perspective
The shift is not simply about adding restaurants or attractions: industry representatives say malls need distinctive brands and experiences while preserving a balanced retail proposition.
Key facts
- F&B and entertainment share
- About 32% of mall leasing space in H1 2026, compared with about 20% in 2020.
- Entertainment share
- 17% in H1 2026, up from 8% in 2020; it briefly reached 32% in 2022.
- F&B share
- 15% in H1 2026, up from 12% in 2020, after reaching 22% in 2025.
- Apparel share
- 33% of mall leasing space in H1 2026, compared with 35% in 2020.
- Department stores and hypermarkets
- Their share declined from 14% in 2020 to 4% in H1 2026.
- Future mall planning
- Anarock expects upcoming malls to allocate more than 50% of space to non-traditional retail such as food and entertainment.
- Operational malls in India
- Around 650, excluding malls that shut down or were converted to other uses.
Quotes
Pushpa Bector
Group executive director and business head, DLF Retail
“People are looking for places where they can shop, dine, catch a movie, spend time with family and discover something new — all in a single visit.”
financialexpress.com
“Cinemas are a destination for shared experiences, a reason to step out, spend time together and engage with entertainment beyond home screens.”
financialexpress.com
Sources
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