Sharleen D’Souza & Raghavendra Kamath, Business Standard
\n Mumbai, January 4, 2012<\/i><\/p>\n
![](\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/09\/sale.JPG\")
Hit \n by a sharp slowdown in sales, apparel brands and retailers are \n either extending their end-of-the-season sales or sometimes advancing \n it by weeks to clear their inventory and free up cash.<\/p>\n
While French menswear retailer Celio, which has a joint venture \n with Future group, is on a sale for almost one-and-a-half months \n till February 14, UK-based brand French Connection is having its \n year-end sale till March. Normally, these brands have their end-of-the-season \n for a month.
\n <\/p>\n
If Celio and French Connection have extended their sale, German \n brand Esprit not only advanced its end-of-the-season sale by a \n over a fortnight to December 31 this year (it was January 16 last \n year), it is even offering a 40 per cent discount on the purchase \n of three items. Similarly, Italian premium brand Diesel is already \n on sale for the one last week. Its sale normally starts in end-January.<\/p>\n
Central, the mall concept of Kishore Biyani’s Future group, \n which is to go on a year-end sale next week, did an unusual thing. \n It went for a three-day shopping event between December 30 and \n January 1, and offered 25 per cent discount on 500 brands.<\/p>\n
“The slowdown has caused many retailers to advance their \n sales and extend their sales,” notes Pranab Barua, CEO, Madura \n Fashion and Lifestyle, which has a distribution agreement with \n Esprit.<\/p>\n
Even many international brands such as Mango, Vero Moda, Forever \n New are doling out discounts — up to 40 per cent. “The \n season has been below expectations,” says Devangshu Dutta, \n chief executive officer of retail consultancy Third Eyesight. \n “There is significant amount of inventory that has to be \n cleared out. The retailers have to get fresh inventory by February-March; \n before that they need to clear old merchandise. Otherwise, cash \n would be stuck in that.”<\/b><\/p>\n
According to analysts, the inventory levels of Pantaloon Retail, \n the country’s largest retailer by market value, have touched \n Rs 35-40 of sales per square feet, which is one of the highest \n in the last many quarters.<\/p>\n
A recent newspaper advertisement by FBB (earlier Fashion at Big \n Bazaar), a fashion format run by Pantaloon, said it was offering \n a 40 per cent off on all items till January 15 at the standalone \n stores and those within Big Bazaar stores also.<\/p>\n
“They have high inventory levels,” notes an analyst. \n “It is most likely that they will advance the end of the \n season sales for their apparel stores by a couple of weeks like \n most other retailers.”<\/p>\n
Pantaloon Retail executives could not be contacted for comment. \n The company, though, had in a recent presentation said, “lower \n consumer spend due to increase in prices, especially in fashion \n category, also resulted in most competitors extending their end \n of season sales by a week or two”.<\/p>\n
Apparel retailer Provogue, which used to buy 1,800 pieces from \n vendors every season, now buys only 1,500 pieces due to the current \n slowdown in sales. The chain is also giving a Rs 1,000 gift voucher \n on purchase of material worth Rs 4,000 to “motivate our customers”, \n according to managing director Nikhil Chaturvedi. “In a bullish \n market, we do not mind inventory. But in a slowdown, we do not \n want a pile-up on our inventory,” Chaturvedi had told this \n newspaper recently.<\/p>\n
Kiran Kothekar, one of the promoters of Vector Consulting Group, \n says the extending or advancing sales will impact profitability \n of retailers, but Third Eyesight’s Dutta says taking a \n hit of margins is better than cash getting stuck in inventory.<\/b><\/p>\n
Apparel sales have been hit as prices have gone up 30 to 40 per \n cent in 12-18 months due to rise in raw material prices, increase \n in excise duty on branded apparel and so on, which has discouraged \n buyers. A slowing economy, falling markets and rising equated \n monthly instalments have left lesser disposable money in the hands \n of people, say analysts and companies.<\/p>\n
“There is a stagnancy in growth,” says Arvind Singhal, \n chairman at retail consultancy Technopak Advisors. “Retailers \n should offer more affordable products and cut out on the premium \n products.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Sharleen D’Souza & Raghavendra Kamath, Business Standard Mumbai, January 4, 2012 Hit by a sharp slowdown in sales, apparel brands and retailers are either extending their end-of-the-season sales or sometimes advancing it by weeks to clear their inventory and free up cash. While French menswear retailer Celio, which has a joint venture with Future group, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2380","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"\n