Several businesses have witnessed disruptions since the outbreak of COVID-19 in the country. Popular clothing brand Madame recently shared that it is expecting a 40 per cent fall in its revenue in the current financial year.
If the pandemic continues to affect the business even during the ongoing September quarter, the company may have to shut 20 per cent of its retail stores, Madame added.
“With uncertainty and ad-hoc restrictions being imposed every day across major cities, the impact is fairly visible with the consumer preferring to stay inside,” said Akhil Jain, Executive Director, Madame.
“We expect a 40 per cent reduction in business numbers seeing how the market has behaved in the first quarter and 2 weeks of the second quarter,” he added.
The company has posted a turnover of Rs. 275 crore for 2019-20.
It must be mentioned here that the brand has more than 150 standalone stores and 600 multi-brand stores. Akhil informed that 85 per cent of its standalone retail stores are now operational.
In its endeavour to maintain the retail space, the company is connecting with the landlords, sharing its concerns. “Most of them have supported the brand so far in terms of reduction in rentals or change to revenue share models,”he added.
Akhil also shared that before coronavirus hit the world, Madame had plans to open 20 new stores during this fiscal. Seven are already under fit-outs, he added.
Having understood the consumer demand in the new normal, the company has realised that comfort wear has gained momentum, and thus, they have unveiled a work-from-home collection.
The retailer has also seen potential in face masks, and so, has planned to introduce a new collection of coordinated T-shirts and masks in August.
