Some of India’s leading value apparel chains, including V-Mart Retail, V2 Retail and Vishal Mega Mart, expect festive sales to grow by around 20% this year, nearly double the growth recorded in recent years. The optimism follows recent decisions by the GST Council to reduce taxes on garments priced up to Rs. 2,500 (US $ 28), placing them in the 5% slab, while those priced above that threshold will now attract 18%.
Lalit Agarwal, founder and managing director of V-Mart Retail, said the tax changes would particularly benefit the mid-priced value segment, between Rs. 1,000 (US $ 11) and Rs. 2,500 (US $ 28), which accounts for about a quarter of its sales. He explained that around 75–80% of V-Mart’s apparel had previously been priced under Rs. 1,000 (US $ 11) and already fell under the lower GST slab, but the new threshold would increase demand in the mid-priced category. Agarwal also suggested that the cuts would encourage smaller retailers to join the formal economy, as managing parallel trade would become more difficult.
Akash Agarwal, whole-time director of V2 Retail, said there was clear buoyancy in the market. He noted that with essential items becoming cheaper, the tax reduction would provide consumers with greater room for discretionary spending, which would likely flow into value retail during the festive season.
Executives at Vishal Mega Mart pointed out that garments in the Rs. 1,000 (US $ 11)– Rs. 2,500 (US $ 28) bracket would now be cheaper by an estimated 6–7%, encouraging more consumers to shop in this range. Apparel already contributes nearly 44% of Vishal’s revenues, with the remainder evenly split between FMCG and general merchandise.
The Retailers Association of India (RAI), the apex body for organised retailers, said the GST changes would not only reduce consumer prices but also stimulate demand, improve the ease of doing business and help bring more MSMEs into the formal economy.
Both V-Mart and V2 Retail plan to accelerate expansion in Tier-2 and 3 markets in the coming years. V2 aims to add 100 stores annually, targeting 600–700 outlets by FY ’30, while V-Mart has said it plans net additions of around 60–65 stores in FY ’26, focusing on sustainable growth after a recent rationalisation of its network.
