Industry insiders have observed that consumers are being cautious in their clothing and accessory purchases due to higher prices of everyday goods, which are limiting their discretionary spending.
April-May witnessed lackluster retail sales, leading companies to initiate early end-of-season sales to address mounting inventory.
According to industry sources, analysts, and companies themselves, fashion retailers are expected to report a 10 per cent revenue growth in the current financial year, a significant slowdown from the 51 per cent increase seen in FY ’23, as projected by ratings agency ICRA.
In a report by analysts at Motilal Oswal Financial Services, it is stated that nearly every lifestyle company has observed a persistently sluggish demand scenario across various product categories, price ranges, and geographical regions.
While the impact of a higher base in the last financial year is evident in April-May 2023, footfall has notably been weak. Although revenue trends have shown some improvement in June, they still remain modest, according to the report.
