Worried apparel retailers prepone discount sale season
By FashionUnited
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Continuing inflation and high interest rates are still putting the consumer in a dilemma forcing them to stop spending on optional needs. Earlier when retailers held such sales, the old merchandise used to get over within 2-3 weeks, letting them stock new full-price merchandise in time for the festive months, beginning with Durga Puja in West Bengal. But since the slowdown of 2008, retailers are forced to extend the discount season to keep the cash registers ringing.
Experts say, with recession still hampering growth, retailers would have to continue with the early and extended sales period. Even those apparel retailers, whose sale season begins a bit late, are planning to join the rest as they fear losing out on the opportunity.
Other than offering discount sales, retailers are also considering reducing inventory levels and reducing product prices. For instance, Future Group is working on reducing its inventory by ordering closer to the season and planning to reduce prices by 3-4 per cent on an average. The norm in the fashion apparel industry is to place purchase orders six months in advance. Now for 30 per cent of its fashion apparel merchandise the retailer has reduced the delivery time to two to four months in advance. Even DLF Brands has reduced its order size by close to 10 per cent.
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