Apparel retail sales expected to decline further

Though apparel retailers witnessed positive bounce

back in sales due to heavy and prolonged discount season, the industry is not expecting a thrilling season ahead owing to the slow economy, high inflation, low demand and excise duty and high raw material costs. People only made purchases after waiting for the sale season to kick start and have pulled their purse strings thereafter, once again washing away all hopes of recovering from the dismal performance witnessed by these retailers last year.

Despite of agitation and protests from apparel retailers and industry bodies the government is in no hurry to take corrective measures on the excise duty front, since it witnessed high earnings out of it. In fact, the government plans to continue with excise even in the forthcoming budget. This has further aggravated retailers’ woes, who are already worried about factors like maintaining operational costs and getting rid of the inventories.

After witnessing a decrease in raw material costs and positive sale season, retailers were hoping for a relief in the New Year, but there doesn’t seem to be a respite anytime soon. Now they are only hoping to see a sunrise in the second half of the year by keeping a tabs on excess production and inventories.