Festive Sales: Fashion Retailers Puma, Levi Strauss, Others See A Strong Response
By: Sneha Chaudhary
- Top Fashion Companies says there is high demand during a festive season.
- After the lockdown unlike most of the other consumer categories that either recovered or seen an increase in demand.
- Some luxury goods, such as apparel and liquor are still struggling to mop up higher revenue
Top Fashion retailers companies, including Levi Strauss & Co, Arvind Fashions, Shoppers Stop, Marks & Spencer and Puma, said there is a high demand for the festive season now, but they expect the apparel segment to only reach pre-Covid peaks by next year in March. Sanjeev Mohanty, Managing Director – South Asia, Middle East and North Africa, at Levi Strauss & Co., said: “As we get through the pre-Diwali season, we are looking at a more optimistic pattern”.
After the lockdown unlike most of the other consumer categories that either recovered or seen an increase in demand. Some luxury goods, such as apparel and liquor are still struggling to mop up higher revenue. Compared to a year ago when most retailers launched their outlets aggressively, the slow turnaround is also attributed to store closures and halted expansion growth.
As per a report by Motilal Oswal Financial Services, apparel segments is much weaker than the other sectors, with average sales down 45-55 per cent. “Liquidity woes are created by slow recovery and sticky inventory,” it said. “Last year the pattern of retail openings has reversed towards closures”.
Despite job losses, revenue has reached 90 per cent of pre-Covid, Chief Executive of Arvind Fashions, J Suresh said. “the market for physical stores is lower, as per our predictions.” he added. In another 5-6 months, we expect normalcy. “Shoppers also stop, said discretionary spending in the East India Market during Durga Puja is rising back with a revenue mix at around 65 per cent of last year.”
“We surely see these green shoots helping the industry inch back by the end of this year,” said Uma Talreja, Shoppers Stop’s Chief Marketing and Consumer Officer.