D2C brands are investing heavily in experiential stores as part of their omnichannel strategy, with high-street locations gaining popularity despite rising rentals.
According to a report by CBRE, around 46% of leasing activity by new-age D2C brands took place in high-street areas, while mall units accounted for 40%, and the rest were standalone stores during the first half of the calendar year 2025.
This trend highlights that brands are increasingly seeing physical stores not merely as sales points, but as experience-driven hubs where customers can interact with curated, personalised offerings and build communities.
While malls provide scale and footfall at a more economical cost, high street stores allow greater flexibility in design, branding, and positioning.
However, even with their relatively smaller pockets as compared to more established players, D2C brands are willing to go big on these areas despite little relief from rental hikes.
Delhi-NCR, which leads the charge for leasing activity by D2C brands, accounts for 26% of all D2C leasing activities.
As per a report by Cushman & Wakefield, main street areas saw double-digit rent increases for retail outlets across sectors. These commercial areas with high concentration of retail and consumer traffic alone accounted for two-thirds of total transaction volume.
Main street rentals in Galleria Market (Gurugram) recorded a 25% growth on a YoY basis, while Connaught Place saw an annual rental increase of 14%. Sector 29 in Gurugram, a major F&B hub, posted rental growth of 12-15% on YoY basis in Q3.
Average high-street rents across Mumbai grew by 6–8% YOY, while select high streets witnessed as much as double digit growth of ~15% on an average during Q3. This is primarily owing to the limited availability of quality retail space and increasing consumer demand, according to another Cushman & Wakefield report.
On an overall level, D2C segment's real estate leasing activity accounted for 18% of the total retail space takeup from January to July 2025. The offline foray was dominated by categories like fashion, responsible for 60% of leasing activity, as well as homeware and furnishings.
The Indian D2C market is experiencing rapid growth, projected to reach $61 billion by 2027 at a CAGR of 38%. This expansion is mirrored by the rising number of D2C brands, which have grown by 62% since 2021.
Edited by Megha Reddy
Original Article
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