Stories
Why Digital-First Brands Are Betting Big on Physical Retail Stores

S
Storyboard•09-10-2026, 09:21
Why Digital-First Brands Are Betting Big on Physical Retail Stores
- •Offline retail still dominates the Indian apparel market, constituting 83 percent of total sales compared to 17 percent online.
- •The Indian apparel market is valued at $95.7 billion in CY2025 and is projected to reach $146.3 billion by CY2029.
- •Digital-first brands like Neeman's and Nykaa are actively expanding their physical store footprint to build trust and counter rising digital advertising costs.
- •Major retailers like Trent and Jubilant FoodWorks continue to post strong revenue growth alongside aggressive physical store expansions.
Key Questions Answered
The Indian apparel market is valued at $95.7 billion in CY2025 and is projected to reach $146.3 billion by CY2029, registering a compound annual growth rate of 9% as outlined in the CMAI consumer research report.
Trent grew its standalone revenue from operations by 23% year-on-year to ₹5,788 crore in Q2FY27 and expanded its total retail network to 1,342 stores, which included opening its 1,000th Zudio store.
Digital-first brands like Neeman's are expanding offline because rising advertising costs and intense online competition make physical stores a steady and profitable channel, even though digital platforms remain vital for discovery and customer acquisition.





