Mukesh Ambani’s Reliance, Ratan Tata’s Trent, Aditya Birla Fashion, DMart slow down store launches due to…

India saw a significant slowdown in new store openings in 2024, as only an average of three new stores opened daily compared to ten in 2023, claim report.

Written by: Anirudha Yerunkar Edited by: Anirudha Yerunkar

Published: March 6, 2025, 8:53 AM IST

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https://www.india.com/business/mukesh-ambanis-reliance-ratan-tatas-trent-aditya-birla-fashion-dmart-slow-down-store-launches-due-to-weak-economic-condition-7658783/ Copy

India witnessed a significant decline in new store openings in 2024 due to weak demand in discretionary categories led retailers to reduce costs and adopt a cautious expansion strategy. At the same time once this phase will be over retailers will start preparing for renewed growth.

Reliance Retail, Tata’s Trent Store Expansion 

Data from a dozen leading quick-service restaurant (QSR) chains, apparel, and grocery retailers, including Reliance Retail, Aditya Birla Fashion & Retail, DMart, Tata’s Trent, Titan, and McDonald’s, revealed that only an average of three new stores were added daily in 2024, claimed Economic Times report. This is a sharp decline compared to an average of ten new outlets per day in 2023.

These retailers collectively grew their store count by just 3% last year, reaching a total of 34,839 outlets by the end of 2024, compared to 33,670 outlets in 2023. This growth rate was a marked slowdown from the 12% increase observed the previous year.

Reasons Behind Low Demand

Retailers cited several factors contributing to the consumption slowdown like High food inflation, limited salary hikes, rising consumer debt, slower job creation, increased housing rentals and home prices. In addition, higher real estate costs further impacted store expansion plans.

The slowdown in discretionary spending on items such as apparel, footwear, and beauty products persisted throughout 2024. This trend began in 2023, following two years of rapid pandemic-induced growth.

According to the Retailers Association of India (RAI), sales growth in organised retail segments like apparel, footwear, beauty, and QSR slowed to mid-single digits in 2024, down from 15% in 2022. As a result, many retailers opted to close unviable stores, a trend that continues as companies aim to improve profitability.

Consolidation Phase Nearing Its End

Retailers indicated that their focus on consolidating store networks is nearing completion. According to ET report, Vishak Kumar, CEO of the lifestyle business at Aditya Birla Fashion and Retail, said
“Some of our margin-draining retail stores have been taken off. That augurs well for the overall network. We are now cranking up the expansion machinery again, which will drive the next wave of growth.”

Similarly, Shoppers Stop MD Kavindra Mishra said, “We are at the end of the cycle of rationalising our stores. I don’t see a lot of closures in the coming year. In FY26, we plan to open 12-15 new stores.”

Retailers are now witnessing slight reductions in rental expectations, which can make more favorable deals. With store consolidation largely complete and market conditions stabilizing, India’s top retailers are gearing up for the next phase of expansion.