Early sale season dampen retailer’s mood

Monday, 09 July 2012

With most international brands such as French Connection, FCUK, Regal, Guess, Puma and Fila and domestic apparel retailers announcing their end of season sale almost three weeks in advance, consumers are back to shopping. Of course, retailers are not too happy though because while they are trying to get rid of piled up inventories through sale, they are worried about the new collections that would hit stores soon. Before sale season started off, consumers had tightened their purse strings and were not buying the merchandise at their MRP leading to low demand.

Though most of apparel retailers are optimistic about the festive season ahead, the current scenario and early discounts tell a different story. Fear of another bleak year is putting pressure upon these retailers. And despite adopting a very cautious stocking by the retailers, the consumers waited for sale season to kick off. Because consumers too have become more conscious of how they are spending and on which products owing to larger taxes, inflation and interest rates.

Even the e-retailing boom is adding to retailers’ woes. With most of the best domestic and international brands available on various e-platforms and sometime at discounted rates, consumers have taken to e-shopping rather than stepping out of their homes to make purchases. While apparel retailers are a worried lot at, they are hoping to cash in on the consumer response they are getting due to early sales.