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With consumer sentiments improving, the apparel retail industry is anticipating a 15-20 per cent growth during the festive season as against 7-10 per cent last year. Industry attributes the growth based on improved economy vis-a-vis last year.
"Last year the sales growth during festive season was around 7-10 per cent. However, this year, with gradual improvement in economic sentiments, the festive season is expected to do better and may even clock double the growth of last year," said Rahul Mehta, president of Clothing Manufacturers Association of India (CMAI).
The growth is especially being perceived in the like-to-like store sales growth. Like-to-like growth is the increase in sales from same store in comparative quarters.
"Sentiments are very good and we expect the market also to respond positively. The whole festive season cycle will begin my next week though there has been some start in the east. The overall sentiments are quite positive. We are all hoping the like-to-like store sales growth to be anything between 15 and 20 per cent. Last year it was in the area of 10 per cent it will be 15-20 per cent is what we are expecting," said J Suresh, managing director and chief executive of Arvind Lifestyle Brands Ltd.
Retailers are expected to make the most of the festive season given that the annual cycle allows them to bring in new arrivals. "Typically this is our best selling period since normally we don't do discounts this time of the year," Suresh added.
The festive season also brings in a much needed respite after a normal post-summer discount season this year.
With the post-summer discount season period getting extended with each passing year, apparel retailers this year had to shorten the period. According to apparel retailers, since last few years, the discount season duration was only growing, thereby forcing players to sell bulk of their merchandise at discounts.
While usually the season goes on till almost end of August, this year the season may end by August 17. What's more, in a bid to improve sales on actual full prices of products, retailers had changed their strategy to offer deep discounts on select days instead of the previous trend of full weeks. Deep discounts are in the range of 50-70 per cent while normal discounts range between 20 per cent and 40 per cent.
