- Shubhangi Bidwe |
Many brands and retailers have advanced their end-of-season sales this year. Store chains like Central, Lifestyle and Brand Factory are offering almost 50 per cent discount on merchandise in June as the pressure to grow their top line increases. Central and Brand Factory are using different tactics from flat discounts to aggressive offers, promotions and cash backs to get footfalls into stores. The two chains are extending their sale period. Shoppers Stop’s end of season sale would allow it to exhaust its summer inventory, giving it the leeway to plan for the future.
Apparel retailers reported lower same store sales growth (SSG) for the fourth quarter. SSG is sales growth for stores a year and above. The average SSG hovered between three per cent and nine per cent for most players, lower than the eight per cent to 20 per cent range seen in the third quarter, which was also a festive quarter. Brand Factory was the only chain to buck the slowdown trend, reporting an SSG of 13.1 per cent in the fourth quarter.
Pressure from e-tailers is prompting offline players to react quickly and come up with more sale days across the year. Apart from brick-and-mortar chains, online platforms also have their sale periods, offering deep discounts and promotions.