End of season sales may begin early this winter

End of season sales in India typically start in the first or second week of January, when the New Year season ends. But this year since winter has set in early, and demonetisation has affected two weeks of sales, most fashion retailers may have their discounted sales just before Christmas.

Most retailers have seen a 20 to 25 per cent decline in sales in the fortnight after demonetization. Some have witnessed a 40 per cent decline. Retailers dealing in marriage merchandise are facing flat growth. So retailers are facing a more or less desperate situation.

Brands could also offer discounts and gifts during the season to boost sales. For example, Central plans a one-day sale in which it will offer 50 per cent off on 50 brands and 1,000 new styles. But New Year is a crucial period for retailers when they sell full-priced merchandise and offering discounts will hurt their margins. But the situation leaves them with little choice.

Retail groups would take a call on how many days of discounted sales they would offer. Last year too saw some advanced discounted sales. Hypermarket sales have seen a jump of 40 percent as shoppers have migrated from local kiranas to hypermarkets.