Revenues from fashion retail sector to rise by 15% in FY2025: ICRA

With the value fashion segment gaining momentum, the fashion retail sector in India is expected to witness a demand recovery with revenues rising by 15 per cent in FY2025, as per ICRA.

After nearly two years of slowdown, the value fashion segment in India is showing signs of recovery with average sales per sq ft surpassing pre-COVID levels for the first time in Q1 FY2025. This resurgence is marked by increased activity, as large corporations either enter the market or expand their presence aggressively.

In contrast, average sales per sq ft in the premium fashion segment declined by 3 per cent in FY2024 and Q1 FY2025, while the value segment thrived, surpassing pre-pandemic figures.

Revenues of Trent Retail, operator of the value fashion brand Zudio, rose by 56 per cent during Q1 FY25, along with a substantial profit rise of 126.3 per cent. Zudio also opened 203 new stores across 46 new cities, bringing its total to 545 locations.

Zudio is now a formidable competitor to Landmark Group’s Max. In response to market trends, Shoppers Stop has launched its new value format, InTune, in the mass premium segment, planning to open 60 new stores in FY25. Meanwhile, Reliance Retail’s value fashion brand Yousta is negotiating with British retailer Primark to potentially launch in India.