Retailers hit religious destinations to create new growth avenues

Large retailers in India are hitting religious destinations to create new avenues of growth. This comes as these destinations have been ramped up with better infrastructure giving rise to increased tourism.

“As more pilgrims and spiritual seekers visit holy cities in India, retail brands across segments, including fashion and apparel, food and beverage, hypermarkets, homeware and department stores and consumer electronics brands, are expanding by tailoring the offerings to the pilgrim’s needs. This trend underscores the symbiotic relationship between spiritual tourism and the retail industry, benefiting both sectors from the increased foot traffic," real estate consulting firm CBRE South Asia said in a report.

The report is based on study on Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai as Key cities witnessing this retail boom

Retailers flock to religious destinations

The report mentioned that retail shops are modifying their offerings strategically in both established mall clusters and high-street locations to cater to the growing tourist population.

“Government initiatives to promote tourism and improve connectivity between pilgrimage sites are further boosting this growth. The rise of online retail platforms offering easy access to faith-based products and services is also a key factor," said Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.

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For instance, retailers such as Manyavar, Reliance Trends, Raymonds along with Pantaloons and Reliance Smart have expanded in Ayodhya. Meanwhile, large cities like Amritsar and Varanasi, already have the presence of established retailers such as Burger King, Domino's, Pizza Hut, McDonald's, Croma, Zudio, and others.

Enhanced Infrastructure

The report credited this expansion of retailers into religious destinations to the enhanced infrastructure like improved highways, upgraded railway stations, and new airports in cities like Varanasi, Ayodhya, Amritsar, etc. This is enabling better access and connectivity to such cities.

“Additionally, streamlined travel services such as online booking systems, tourist information centres, and heightened security measures enhance the overall travel experience. This shift towards experiential travel is largely driven by younger generations seeking cultural immersion and spiritual growth," the report said.

Along with retailers, Hospitality companies are also trying to ride the boom wave as demand for hotels surge.

“Several cities have a strong pipeline of new hotel projects, with well-known brands like Marriott, Taj, and Hyatt showing keen interest in entering this market. Branded hotels are emerging as key players, offering a blend of comfort and traditional hospitality tailored for spiritual seekers. Boutique and experiential hotels provide personalised services, curated spiritual activities, and authentic local experiences," the report added