Indian fashion retailers are grappling with a slowdown, a period of consolidation after a slowdown in demand that stretched over five quarters, leading to a wave of store closures and a cautious outlook for the coming quarters. Data from FY24 reveals a stark shift from the previous years' aggressive expansion. Major chains like Pantaloons (Aditya Birla Fashion and Retail), Spencer's Retail, and V-Mart Retail witnessed a net decline in store count due to closures exceeding new openings, reflecting a shift in strategy.

Empty storefronts

• Pantaloons, owned by Aditya Birla Fashion and Retail, saw its store count drop from 431 to 417. Closures targeted smaller stores in less populated areas, with a focus on larger towns moving forward.

• Spencer's Retail went from 151 to 133 stores, exiting "non-strategic geographies" in the South.

• V-Mart Retail opened just 9 stores while shutting down 19 underperforming ones.

• TCNS Clothing brands like W and Aurelia slashed their network by 15%, citing a focus on profitable channels as revenue dipped.

• Titan Eye+, a Tata-owned chain, also closed 8 stores in the last quarter.

Reasons for the closures

• Weak demand: The primary culprit is a prolonged slump in consumer spending. This has forced retailers to focus on profitability by trimming their network and exiting non-performing stores in smaller towns and less strategic locations.

• Optimizing networks: Retailers are consolidating their store presence by shutting down underperforming outlets, particularly in smaller towns and non-strategic locations. This strategy aims to reduce operational costs and improve profitability.

• Shifting consumer habits: The post-pandemic period saw retailers experiment with new formats and markets. However, with the slowdown, they're optimizing their presence and focusing on channels that deliver better returns.

Outlook for coming quarters

• Cautious expansion: While the large-scale closures are likely a one-time event, a return to aggressive expansion is not on the immediate horizon. Retailers are expected to adopt a measured approach, focusing on profitability and optimizing their existing networks.

• Focus on profitability: The emphasis will be on cost-cutting measures like network rationalization and improving operational efficiency. This might lead to a continued focus on larger stores in bigger towns.

Not all gloom

• E-commerce growth: While brick-and-mortar stores are consolidating, e-commerce is expected to maintain its growth trajectory. Retailers are likely to strengthen their online presence to tap into this demand.

• Selective expansion: Some retailers, like Meena Bazaar, are still bullish on physical stores and plan to continue measured expansion. However, success will hinge on factors like mall support and effective strategies to drive footfall.

Malls and retailers need collaboration

Experts highlight the need for collaboration between malls and retailers. Malls can support retailers through initiatives that boost sales and ultimately benefit both parties.

Indian fashion retail sector is at a crossroads

The coming quarters will likely see a cautious approach from fashion retailers in India. While store closures might stabilize, a significant rebound in expansion is unlikely until demand picks up consistently.

Retail sales in India saw a modest 3 per cent growth in May 2024 compared to the same period last year, according to the Retail Business Survey by the Retailers Association of India (RAI).

Kumar Rajagopalan, CEO of RAI, noted that while consumer spending on non-essentials remains cautious, food, grocery, and consumer durables are experiencing positive trends.

Retailers are hopeful that the upcoming budget in July will provide incentives to boost consumer confidence and drive further growth in the sector.

South India led retail growth in May 2024 with a 4 per cent increase, followed by East and West India at 3 per cent, and North India at 2 per cent. Food & grocery and consumer durables/electronics grew 6 per cent each, while Quick Service Restaurants saw a 5 per cent rise compared to May 2023.

Retailers are optimistic about the post-election season and anticipate that the budget will offer the necessary support to sustain and enhance this growth trajectory.

Max Fashion proudly announces the return of its popular Max Kids Festival for summer 2024. This nationwide event, now in its 14th year, has become a hallmark celebration of creativity for children and teens. The Max Kids Festival not only enhances Max's reputation as a beloved fashion brand but also significantly boosts sales, with the kids’ category making up one-fourth of its total revenue.

The 2024 edition introduces an all-India drawing and coloring contest, spanning 21 cities and over 100 Max stores. Pallavi Pandey, Head of Marketing at Max Fashion India, emphasizes the festival's growth and its role in highlighting children's creativity. The theme for this year is "Draw Your Superhero Saving Earth," with participants creating art on recyclable shopping bags provided by Max stores.

Inaugurated by actress NehaDhupia, the event will showcase entries at the Mall of Asia, Bangalore on June 16. Max has curated a special collection inspired by popular comics and OTT characters like Garfield, SpongeBob, and Stranger Things. Engaging activities and a youth fashion show will further enrich the festival experience.

SumitChandna, President & Deputy CEO of Max Fashion India, highlights the brand's commitment to trendy collections for young audiences. With over 23,000 kids registered, seven grand prize winners will enjoy an all-expenses-paid trip to Kashmir. The Max Kids Festival promises an exciting and inspiring platform for young artists nationwide.

A Mumbai-based leading denim and casual wear brand, Camaro is set to expand its presence into western and northern India. This strategic expansion aims to double the company's turnover to Rs 200 crore over the next three years.

The brand plans to widen its marketing network to Maharashtra, Gujarat, and Uttar Pradesh, affirms RK Patawari, Executive Director, Camaro. This move is part of the brand’s broader strategies to tap into new markets and increase brand visibility in these populous and economically dynamic regions.

Camaro currently boasts a strong network of over 1,000 dealers, which has established its market leadership in Bengal, Odisha, Assam, and Bihar. The brand’s expansion into western and northern territories will build on this foundation, leveraging Camaro's established reputation and market knowledge.

To support this growth, Camaro has diversified its product offerings beyond denim to include a wider range of casual wear. This diversification is designed to attract a broader customer base and enhance the brand's appeal across different market segments.

Despite a growing trend towards comfort wear, denim will continue to be a primary driver of Camaro’s growth. The brand manufactures 60 per cent -70 per cent of its sales volume in-house at its units near Goregaon and Ludhiana, while the remaining production is outsourced to meet demand efficiently.

Expanding its product range, apparel brand United Colors of Benetton has introduced its SS24 luggage collection in India, catering to shoppers preparing for summer holidays.

Designed for the modern traveler, this new collection features a vibrant palette of yellows, reds, and blues, complemented by darker hues such as black and forest green. The luggage is not only stylish but also designed to ensure the protection of its contents, making it a practical choice for discerning travelers.

In addition to the new luggage collection, United Colors of Benetton has opened a new store in Bengaluru. This two-story retail space boasts a bright, white interior, creating an inviting and contemporary shopping environment. The store houses the brand's diverse range of men’s, women’s, and children’s apparel and accessories collections.

The store features the complete range of United Colors of Benetton's apparel and accessories. The men’s collection at the store offers casual and formal wear, with a focus on vibrant colors and stylish designs. The women’s collection offers a variety of trendy outfits, from everyday casuals to chic evening wear. The kids collection comprises colorful and comfortable clothing options for kids of all ages.

The store is designed to provide a seamless shopping experience, with clearly organised sections for different product categories. Friendly and knowledgeable staff is available to assist customers with their shopping needs.

Known for its commitment to quality and innovative designs, United Colors of Benetton has a strong global presence and is recognised for its vibrant and contemporary fashion offerings. With the launch of the SS24 luggage range and the new store in Bengaluru, United Colors of Benetton continues to strengthen its position in the Indian market, providing customers with stylish and practical products for their lifestyle needs.

A direct-to-consumer fashion brand, The Pant Project, aims to generate revenues worth over Rs 100 crore within the next 24 months. The company also plans to expand its brick-and-mortar presence nationwide and enhance its bottom wear offerings by introducing more casual and athleisure options.

A specialist in custom-made bottom wear, The Pant Project recently secured $4.25 million in Series A funding led by Sorin Investments. The funding round was attended by investors such as MGA Ventures, Huddle, Dexter Ventures, Indian Silicon Valley, along with seasoned angels including ArjunVaidya, AvniBiyani, Nikhil Bhandarkar, and Vijay Taparia.

Established in 2020 by DhruvToshniwal and UditToshniwal, The Pant Project operates primarily through its e-tailor platform, offering tailored options for both men and women. Their own website constitutes the most significant sales channel, contributing to 65 per cent of total sales, complemented by physical stores in Mumbai and Bengaluru. The brand’s maiden funding round will play a crucial role in driving its next phase of growth and establish it as an omnichannel brand, states DhruvToshniwal, Co-founder.

MandarDandekar, Partner. Sorin Investments, adds, through its network and extensive experience in nurturing direct-to-consumer brands, the investment agency aims to bring strategic value to the brand.

A prominent brand specialising in plus-sized men’s and women’s apparel, Big Hello plans to open 50 new stores across India in the coming months. The brand recently opened its sixth brick-and-mortar store in the Bengaluru.

Dedicated to catering to all body types, Big Hello offers a wide range of western and ethnic wear specifically designed for plus-sized individuals. The brand’s collection includes denims with flattering cuts that provide comfort for larger sizes.

Its new store in Bengaluru offers specialised tailored denims for plus-size customers, chinos and shorts, blazers, kurtas and ethnic bottom wear, t-shirts and bandh galas and accessories.

Big Hello also operates stores in other cities including Chennai, Vijayawada, Guntur, and Hyderabad. Owned by Absolute Brands and Retail Private Limited, founded by Vishnu Prasad, Big Hello is set on making fashionable, comfortable clothing accessible to plus-sized individuals across India.

Youth-oriented casual wear brand backed by Accel and ViratKohli, WROGN has bagged Rs 125 crore investments from TMRW House of Brands.

Founded in 2014 by siblings Anjana and Vikram Reddy, WROGN is now part of TMRW’s expanding portfolio, which includes eight high-value Indian fashion brands.

Having successfully expanded its presence through both online and offline retail channels, Wrong has established an excellent product market fit and disruptive brand building, says PrashantAluru, CEO and Co-founder, TMRW. The brand aims to elevate its iconic status with TMRW’s deep category expertise, brand building experience, and tech-led scaling approach.

According to a recent report by TMRW and Bain & Company, valued at $110 billion, the fashion and lifestyle sector is India’s second-largest consumer category, with about 10 per cent of this market online, worth $11 billion. The online fashion market is projected to grow to approximately $35 billion by the financial year 2028 (FY28), with a 25 per cent CAGR.

Indian cricketer ViratKohli comments, TMRW’s partnership marks an exhilarating new chapter for the brand, sharing a goal to revolutionise the fashion industry.

UK-based premium womenswear brand, Raishma has entered into the Indian market with the launch of its first collection, ‘Full Bloom’ via e-commerce platforms such as Nykaa Fashion, Ajio, and Aza marks a strategic move to tap into India's dynamic fashion landscape.

Showcasing fusion-style dresses with floral prints, the 'Full Bloom' collection features silhouettes ranging from floor-length to midi styles. Spanning bright, neutral, and pastel hues, the color palette of the collection has been designed to evoke a sense of drama and breeziness while making a strong visual impact.

Combining controlled sculptural tailoring with modern elements in womenswear, the collection reinterprets basic essentials for contemporary tastes, says Islam.

Emphasisingwearability, fine craftsmanship, distinctive design, and sustainability, the 'Full Bloom' collection hopes to offer high-glamour options that resonate with the brand's ethos of mindful creation and community engagement.

With the brand’s presence extending beyond its flagship Marylebone showroom in London, Raishma has entered into collaborations with prominent multi-brand retailers across the UK and UAE, such as Namshi, The Huntress, Lux Fi, Little Black Dress, and Not on the High Street. Additionally, the brand reaches global audiences through its direct-to-consumer e-commerce platform.

The brand’s expansion in India will enable Raishma to empower women to embrace their unique style with confidence, further enriching the country's burgeoning fashion scene with its distinctive offerings.

Manufacturer of Killer Jeans, KKCL plans to expand its manufacturing capacity from the current 8 million units to 10 million units. The company also plans to open new company-owned outlets across the country, reveals Hemant Jain, Managing Director. This expansion will be carried out with an investment of Rs35 crore in the current fiscal year. It will be a brownfield project adjacent to its existing units in Daman and Vapi.

To improve distribution, the company also plans to open over 10 new stores by March 2025, increasing the total number of outlets to 40. These stores will be opened before the festive season to leverage the high demand during this period, adds Jain.

KKCL recently acquired a 50 percent stake in women's jeans maker Kraus, with the goal of doubling the company's revenue over the next three years from Rs 176 crore in FY24. The company was acquired with an investment of Rs 166 crore.In FY25, KKCL plans to grow its organic revenues to Rs 1,000 crorefrom the current Rs864 crore.

Delhi-based women’s ethnic wear retailer, Meena Bazaar is upgrading its e-commerce operations besides expanding its omnichannel presence in partnership with SaaS platform-Unicommerce.

To offer an improved shopping experience across channels, enable quick deliveries and optimise operational costs, the retailer has implemented Unicommerce’s multi-channel order management and omnichannel retail management systems. The integration of its online channels, offline stores, and warehouses nationwide on Unicommerce will help Meena Bazaar streamline its operations.

Being a trusted name in the e-commerce and SaaS domain, Meena Bazaar looks forward to a long-term relationship with Unicommerce, says AnuManglani, CEO of Meena Bazaar. This collaboration will enable the retailer to offer features such as store pick-up, placing online orders with offline returns (and vice versa), routing order fulfillment to the nearest store, and store-to-store transfers. Unicommerce's technology will allow Meena Bazaar to process orders from various channels and view the entire inventory through a single dashboard.

Founded in 1970, Meena Bazaar specialises in ethnic wear staples including lehengas, kurta sets, sarees, and suits. Starting as a small store in ChandniChowk selling printed sarees, the company has grown to over 70 stores in India and the United States. According to its official website, Meena Bazaar plans to have more than 250 exclusive brand outlets (EBOs) in operation by 2025.

Business-to-customer shopping fair, Pink Almariis set to gather women's w ear designers from across India for two shopping fairs in Mumbai.

The first of these fairs dubbed, ‘The Monsoon Edit’, will be held on June 21at Worli. The event will showcase a variety of product categories including traditional, ethnic, and fusion wear for women, along with fashion accessories, jewelry, handbags, footwear, home décor items, and gifts.

It will showcase the traditional, ethnic, and fusion wear for women, along with fashion accessories, jewelry, handbags, footwear, home décor items, and gifts. Participating brands at the shopping fair will include Gol Label, Inara by Sana Pathella, LucknoviKurti and Palazzo, Nazakar, ArmaanCreationz, Bid’s Collection, The Jewelry Lab, Fusion Threads, Jijees, Reese, Thread Fiesta, etc.

The event will connect shoppers seeking new labels with emerging brands eager to engage with diverse customer demographics.

Pink Almari will also organise another fashion fair named ‘Wedding and Festive Shopping’ at Blue Sea Worli on July 23. This event will feature a similar array of products, with a special focus on bridal lehengas and sarees for brides-to-be preparing for late summer weddings.

Organised by Marriage Mantra, a fashion and shopping events business, Pink Almari has previously hosted shopping fairs across various Mumbai locations and international editions in Dubai, as noted on its website.