Do You Know the ABCs of Malls?

When we say ABC, we’re not talking about "A for Apple, B for Ball, C for Cat." In the world of shopping, ABC stands for something a bit more exciting — the three grades of malls in India: Grade A, Grade B, and Grade C. These categories define the landscape of retail real estate, shaping how consumers shop, dine, and spend their leisure time.

Let’s dive into what each of these mall grades mean, how they differ, and what the numbers say about their performance across India.

Understanding the Grades: A, B, and C

Grade A Malls: The Cream of the Crop

Grade A malls are the ultimate shopping and leisure destinations. Think massive structures filled with premium national and international brands, high-end restaurants, multiplexes, food courts, and world-class entertainment zones.

These are the malls that often double up as weekend getaway spots. They're located in prime areas of Tier 1 cities, have excellent infrastructure, and are built with modern architectural standards in mind.

Examples: Phoenix Marketcity (Mumbai), DLF Emporio (Delhi), Select CITYWALK (Delhi), Lulu Mall (Kochi)

Key Features:

• Luxury and international brands
• Modern facilities and large floor plates
• Entertainment zones like gaming arcades and multiplexes
• High footfall and visibility
• Strong brand mix and zoning

Grade B Malls: The Middle Child

Grade B malls offer a decent shopping experience but without the glitz and glam of Grade A properties. These malls typically feature a combination of national brands and a few international ones. They may have basic entertainment options, but don’t expect grand food courts or cutting-edge experiences.

Grade B malls are usually located in Tier 2 and Tier 3 cities or suburban pockets of Tier 1 cities. They serve as the go-to option for middle-income shoppers.

Key Features:

• National brands with a sprinkle of international labels
• Modest design and amenities
• Decent foot traffic, but fewer crowd-pulling attractions
• Mid-level food courts and limited entertainment

Grade C Malls: Local and Functional

Grade C malls are simple, no-frills spaces mostly occupied by regional and local brands. You won’t find sprawling multiplexes or high-end retail here — the focus is utility and affordability. These malls usually lack entertainment options like theaters or gaming zones, and their infrastructure is basic.

Often situated in smaller towns or less-developed parts of larger cities, Grade C malls cater to daily shopping needs more than luxury or experience-driven consumption.

Key Features:

• Primarily regional and local retailers
• Limited or no entertainment zones
• Basic infrastructure
• Low maintenance and reduced footfall

Mall Stats in India: Supply and Vacancy

India currently has around 271 operational malls, which altogether contribute a total retail space of 93 million square feet. But the distribution across grades is telling:

• Grade A malls: 52 malls | 36 million sq. ft | 39% of total space
• Grade B and C malls: Remaining 219 malls | 57 million sq. ft | 61% of total space

Grade A malls may be fewer in number, but they take up a significantly larger share of space — which shows how massive and expansive they typically are.

Vacancy Rates in Tier 1 Cities

Vacancy rate is an important indicator of a mall’s success. Here’s how the numbers look for Grade A, B, and C malls in Tier 1 cities:

• Grade A malls: 4.2%
• Grade B malls: 12.4%
• Grade C malls: 36.5%

The message is loud and clear — Grade A malls are performing exceptionally well, with low vacancy and high demand. On the other hand, Grade C malls are struggling to attract and retain tenants, largely due to a lack of modern facilities, strategic branding, and experiential offerings.

Why Grade A Malls Are Winning

There’s a reason Grade A malls continue to dominate:

• Experience-first design: Shoppers today seek more than just products. They want experiences.
• Anchor tenants: Big names like Zara or PVR attract smaller brands and crowds.
• Location: Affluent areas and better connectivity help drive footfall.
• Professional management: Grade A malls are often run by experts who know how to keep the mall thriving.

The Struggles of Grade B and C Malls

Grade B and C malls, in contrast, often suffer due to:

• Poor maintenance and upkeep
• Lack of strategic branding
• Insufficient or outdated infrastructure
• Limited experiential offerings
• Higher tenant turnover

While these malls may have been functional in the early 2000s when the mall boom started in India, today’s shoppers have evolved — and they expect more.

The Future of Indian Malls

As India’s retail sector evolves, we’re seeing a strong push toward upgrading malls — especially those in the Grade B and C categories. Developers are increasingly investing in renovations, redesigns, and even repositioning to boost appeal.

Emerging trends include:

• Mixed-use developments combining retail, office, and residential spaces
• PropTech integration for better analytics and footfall management
• Sustainability features like green roofs and waste management
• Omnichannel retail blending physical and digital shopping

What Kind of Mall Is in Your City?

Now that you know the ABCs of malls, ask yourself — which category does your city’s main mall fall into? Are you living the Grade A life with rooftop lounges, international brands, and VR arcades? Or do you enjoy the cozy comfort of a Grade C mall that keeps it simple and local?

Conclusion: ABCs That Matter

The classification of malls into Grade A, B, and C isn’t just a technicality — it tells a story about India’s urban evolution, shopping habits, and economic growth. Grade A malls are clearly leading the pack with luxurious experiences and low vacancies. But as technology and consumer behavior continue to change, there’s still room for all types — provided they can adapt.

Whether you’re planning to invest in retail real estate or just love your weekend mall outings, knowing your mall’s grade can give you insight into the quality of experience you can expect.

So — what’s your mall grade? Drop a comment, and let us know!