Retailers are currently extending the sale season and providing huge discounts of up to 75 per cent because offline businesses are still performing below last year’s levels. These last weeks are essential for retailers who want to sell off their current inventory before the introduction of new-season merchandise as the clock runs out.
This year, offline retailers have changed the end-of-season sales (EOSS) game plan in a departure from precedent. Brands debuted their EOSS in mid-June rather than delaying until the end of June. The sale is anticipated to keep hold of eager consumers until mid-July, giving them a longer window of opportunity to snag the greatest offers.
According to a recent analysis by ICICI Securities, the decision of retailers to give more discounts during EOSS is a reflection of the underlying stress in their inventories.
An alarming pattern of inventory-related stress is revealed by the investigation, which included well-known businesses including Shoppers Stop, Reliance Trends, Lifestyle, Pantaloons, VMART, Max, and Westside.
According to the research, income decreased between 5 per cent and 15 per cent from April to May of last year. Because of this, the majority of brands have adopted a proactive approach and launched their EOSS a notable two weeks earlier than usual. This tactical change tries to make up for the underwhelming results and revitalise their financials.
