Rather than waiting for all products to go on sale at once, malls are worried about some retailers this year having an early start to end-of-season sale (EOSS). Due to their tendency to use a revenue-sharing model with shops, mall revenues are impacted by early sale starts.
Mall administrators have written to merchants asking them to postpone their sales since some retailers have begun their own sales before the start of the busiest time of year, which is winter. After struggling for six months with unsold inventory and revenue, a number of firms began to offer discounts both online and in-store out of concern that further delays would shorten the shopping season and reduce their chances of selling off stock.
Brands and retailers such as Levis, Bata, Puma, Woodland, Wrangler, Biba, Adidas, Flipkart, Myntra, Nykaa Fashion, Shoppers Stop, and Lifestyle have begun offering discounts either online or in-store.
EOSS typically lasts from 18th-20th December to January. Since last year’s winter was short and only reached its height in January—and only for a short time—the retail sector is afraid to take any chances, which has led to a rush to deplete inventory.
Since goods for the spring-summer collection will begin to arrive at their warehouses later this month, industry leaders stated that early discounts will also improve cash flow. Retailers anticipate that the early start to the end-of-season sales will increase December and January revenue by 8–12 per cent annually. Due to the steep discounts offered during the recently ended Black Friday sales, a number of brands and merchants reported strong sales.
