Clothing, Accessories Sales See Inflation Hit

Consumers are exercising caution before purchasing clothing and accessories, as higher prices of daily goods are constraining their discretionary spending, said industry insiders

- Suneera Tandon

According to companies, industry associations, and analysts, retail sales was lacklustre in April-May. Consequently, companies have started early end-of-season sales due to mounting inventory. Ratings agency ICRA expects fashion retailers to report a 10% growth in revenues this financial year, slowing from a 51% increase in FY23.

“Almost every lifestyle company indicated that the demand scenario continues to remain soft across product categories, price ranges, and geographical regions. While April-May 2023 has possibly seen a more pronounced impact of the higher base of last financial year, clearly footfalls have been weak. Although revenue trends have been better in June, it continues to remain modest," analysts at Motilal Oswal Financial Services said in a report on Monday. The brokerage hosted a retail investor day on 17 June inviting firms to share their views on both demand as well as the business environment.