Year-end sale brings temporary cheer to apparel retail

With end-of-season sale starting early this time, retailers and apparel

brand stores are witnessing some activity amid low consumer sentiment, high inflation et al that continued to negatively impact businesses even during the holiday season in December. One of the oldest retail chain, Shoppers Stop for instance, expects to maintain double-digit growth during the end-of-season sale season since the sales generated during this period contribute around 20 percent of its annual revenue. The company kicked off its sale on January 4 in Chennai, Mumbai and Kolkata, which was extended to other cities the next day.

Most retailers suffered due to rising operational costs last quarter, impacting their margins. As per industry experts, listed retailers like Trent, Pantaloons, Shoppers Stop and Provogue and unlisted players like Lifestyle, Charles & Keith, Pepe, Hidesign and Wrangler, all had to bear the brunt of a slow economy and other related negative factors.

Pepe, for example, has begun its sale season on January 2 with a flat 40 percent offer on purchases of three or more garments. Westside announced up to 60 percent discount from January 2. Aldo has announced discounts up to 40 percent, Charles & Keith offers up to 30 percent off. Low or no shoppers at the stores or in malls has led to companies announcing steep discounts. Like last year, the industry expects only the sale season to attract some consumers and business.