Demand for lifestyle items and clothes remained low, despite stores providing discounts of up to 65 per cent during their ongoing end-of-season sales (EOSS).
Most businesses also moved their EOSS ahead two weeks to early December from January, expecting to catch up on sales before e-commerce platforms began their Republic Day deals.
“There is obviously tension in the broad value category, and everyone expected EOSS to offer much-needed sales impetus. But the increase is moderate, and we hope that the summer will be better,” said Manish Kapoor, managing director of Pepe Jeans.
According to industry analysts, the clothing retail sector is set to have another quarter of decline, with a rebound projected only after April. According to ICICI Securities, the majority of brands recorded flat or low single-digit same-store sales growth in the third quarter of FY ’24. EOSS enables merchants to offload unsold inventory before the next season’s stock arrives.
Devarajan Iyer, CEO of department store chain Lifestyle International said, “Despite discounts, growth is weak, and we anticipate no evidence of improvement in the January-March quarter. With the surge in disposable income, people prefer to spend the money on leisure and vacation, but we expect demand will be back in April and beyond.”
Since January 2023, the fashion retail category has experienced a downturn in demand due to inflationary pressures. The Retailers Association of India said that retail growth dropped to 6 per cent in March and April, then increased to 9 per cent in August and September before dropping to 7 per cent in October and November.
ICICI Securities analysed India’s top seven retail brands – Shoppers Stop, Reliance Trends, Lifestyle, Pantaloons, VMART, Max, and Westside – and discovered that Shoppers Stop offers the highest discount at 66 per cent, compared to rivals at 20-40 per cent. Reliance Trends, Lifestyle, and Pantaloons provided discounts of 40 per cent, 41 per cent, and 42 per cent, respectively.
Most firms have either slashed prices or offered large discounts over the previous six to eight months to clear unsold supplies following last year’s price rises across garment categories. The value fashion market was the most damaged and has failed to reach its pre-pandemic average sales per square foot.
