D2C Brands Continue to Deepen Physical Retail Footprint, Capture 28% Share of India's Leasing Activity in H1 2026: CBRE

National, July 29, 2026: Direct-to-consumer (D2C) brands in India continued to strengthen their physical footprint, capturing around 28% of overall leasing activity between January and June (H1 2026), up from around 23% in H1 2025, according to the latest report by real estate services and investments firm CBRE South Asia Pvt. Ltd.

The overall retail leasing in India rose 20% year-on-year to approximately 3.9 million sq. ft. in H1 2026, with April-June (Q2 2026) alone contributing ~2 million sq. ft. Delhi-NCR led retail space take-up with a 35% share in H1 2026, followed by Chennai (17%) and Mumbai (15%).

Domestic retailers continued to dominate leasing activity, accounting for over 70% of total take-up, led by brands across Fashion & Apparel, Food and Beverage (F&B), Entertainment, and Jewellery.

D2C brands have increasingly expanded into physical retail to build more credibility, achieve greater brand visibility, and offer more immersive and personalised shopping experiences.

In its India Retail Figures H1 2026 report, CBRE noted that this strategy is now evolving, with brands placing greater emphasis on long-term viability. As competition for premium retail space intensifies, digital-native players are increasingly balancing store-level profitability, capital efficiency, and omnichannel integration rather than simply adding outlets.

"India's retail story in H1 2026 reflects a market that is maturing, not just growing. Retailers today are making sharper, more considered choices about where and how they expand, and that discipline is exactly what is building a more resilient, long-term retail sector for the country," said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.

The report noted that Fashion & Apparel remained the dominant category within D2C leasing, accounting for around 69% in H1 2026. It was followed by Homeware and Furnishings (12%) and Jewellery (7%).

Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East & Africa, CBRE, said, "What stands out this half is how deliberately retailers are recalibrating their growth strategies: balancing new-market opportunities with the fundamentals of long-term viability. This shift in approach is a sign of a retail sector that is planning for the next decade, not just the next lease."

The shift from expansion to retention is also visible in the physical formats being adopted by D2C brands. Along with standard storefronts, several brands are experimenting with purpose-built formats like micro-stores that function as experience centres rather than pure sales points, and shop-in-shop partnerships that allow digital-first brands tap into an established retailer's footfall and credibility without the risk of a standalone launch.

Lifestyle-led retail platforms that curate multiple D2C brands under one roof, combining a physical showcase with curated events and community-building, are also emerging as a lower-risk entry format for brands testing offline retail for the first time.