19 January 2022, Mumbai:

The third wave of COVID-19 in India is likely to stave off an estimated 8 per cent of fashion retailers’ revenues in the current financial fiscal, says credit rating agency ICRA.

Key highlights: 

• Fashion retailers to achieve 70-72 percent of pre-pandemic revenue.
• The retailers are set to be hit by restrictions in place adds the report. 
• This hit is marked by an excessive stock pileup. 
• Omicron wave remains the downside risk 

In the current fiscal, fashion retailers are expected to achieve 70-72 per cent of their pre-pandemic revenues as against the earlier projection of 78-80 per cent. 

Their sales, however, rebound to those witnessed post the second COVID-19, adds the ICRA report

The agency gives the fashion segment a negative outlook as it expects retailers to return to pre-COVID levels by the second quarter of the next financial year.

The recent surge in Omicron cases has once again brought with it localised restrictions in the form of night curfews and timing restrictions.

As a result, retailers are now stuck with excessive stocks and face a greater risk of significant inventory markdowns.

While the third wave will dent profitability in Q4 FY22, the credit profile of large, listed entities is expected to remain adequately supported by strong balance sheets, says Sakshi Suneja, Assistant Vice President, ICRA.

Credits: Business Standard  

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13 January 2022, Mumbai:

Compared to the pre-pandemic levels of 2019, India’s retail sales grew by 7 per cent in December last year. However, the pace of this growth in later weeks slowed due to the third COVID-19 wave.

As per the estimates of Retailers Association of India (RAI), the Indian retail industry grew by 26 per cent last month compared to December 2020.

Growth across beauty, wellness and personal care categories dropped by 7 per cent compared to the pre-pandemic sales in December 2019, says Kumar Rajagopalan, CEO, RAI.

Growth in the furniture and furnishings category also declined by 5 per cent. Sales across consumer durables and IT products, sports goods, jewellery, footwear, and apparel and clothing declined, although these were still in positive territory, Rajagopalan added.

RAI appealed to the central government to instruct state governments to refrain from imposing restrictions based on positivity rate and consider hospitalizations as the criteria to determine the severity of restrictions instead as most of the country’s population is vaccinated.

This will avoid unnecessary panic among citizens and businesses while minimizing the impact on livelihoods, it added.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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14 January 2022, Mumbai:

Two of India’s biggest e-commerce giants, Amazon and Flipkart have announced the dates for their upcoming Republic Day 2022 sales.

As per a Techno sports report, sales of both e-commerce giants start on the same date as on January 17. However, both of its “special members” i.e. Prime Members for Amazon and Plus Members of Flipkart will get access to this sale one day early i.e. January 16.

The sales events will offer a number of deals on products from smartphones, accessories to fashion, from electronics and accessories to home appliances.

Holders of SBI credit cards will get a 10 per cent discount on Amazon, ICICI Bank cardholders will get a 10 per cent instant discount on Flipkart.

The sales events will be significant as being held in the New Year and it being Republic Day when people generally look to buy new things. After this the next mega sale would be in the summer, hence, shopaholics will look to these sales to buy new items.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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18 January 2022, Mumbai:

Saying it runs contrary to Prime Minister’s ‘Digital India’ vision, the Confederation of All India Traders has urged FM Nirmala Sitharaman, to waive the mandatory GST registration for selling products through e-commerce platforms. P C Bhartia, President and Praveen Khandelwal, Secretary General, CAIT said, this provision of the Act bars lakhs of traders across the country rom using e-commerce to sell their products. It has become a huge deterrent and a major roadblock for traders looking to embrace digital commerce across the country, they added.

They urged the centre to exempt GST registration for digital commerce as these small retailers have annual turnover of less than Rs 40 lakh, which is the threshold for GST registration. Instead of GST registration, Aadhar number, bank details or similar other measures may be designated as essential qualification for onboarding on e-commerce portals, the CAIT members added.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

17 January 2022, Mumbai:

The Shopping Centres Association of India is sure that mall owners will offer shopkeepers relief as retail limitations to combat the third wave of Covid-19 saw malls shut down to varying degrees across the country.

"This is the third time it's happened, and in the previous two rounds, developers and shopping centres stood behind their tenants and shops," SCAI director Abhishek Bansal told the Press Trust of India.

"They'll stand with their partners in this third wave as well so that everyone gets through this."

Despite SCAI's assurances, many retailers are concerned about the new, rapidly growing retail restrictions, which come just as the wedding season approaches.

This is a time of year when apparel and jewellery stores hope to make some of their best sales of the year, and the cancellation of weddings and the reduction of business hours will undoubtedly stymie this.

Many mall owners offered discounts and rent waivers to store owners during the initial and second waves of the virus, and some malls also offered discounts and revenue share models during the recovery phases.

However, other malls faced huge debt obligations and were unable to give big reductions in order to avoid defaulting on the loans. 

Reduced operation hours affect not only fashion and lifestyle businesses in malls, but also eateries in food courts and multiplex operators. SCAI is convinced that mall owners would support these businesses in the same way they have supported them.

"The third wave of Covid has once again put businesses under stress," said Kumar Rajagopalan, CEO of the Retailers Association of India, according to ET Bureau. "Different sections of the country have different rules for dealing with it."

This means that merchants and malls will communicate to one another and try to come up with new arrangements to help them weather the storm."

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13 January 2022, Mumbai:

Compared to the pre-pandemic levels of 2019, India’s retail sales grew by 7 per cent in December last year. However, the pace of this growth in later weeks slowed due to the third COVID-19 wave. As per the estimates of Retailers Association of India, the Indian retail industry grew by 26 per cent last month compared to December 2020.

Growth across beauty, wellness and personal care categories dropped by 7 per cent compared to the pre-pandemic sales in December 2019, says Kumar Rajagopalan, CEO, RAI. Growth in the furniture and furnishings category also declined by 5 per cent. Sales across consumer durables and IT products, sports goods, jewellery, footwear, and apparel and clothing declined, although these were still in positive territory, Rajagopalan added.

RAI appealed to the central government to instruct state governments to refrain from imposing restrictions based on positivity rate and consider hospitalizations as the criteria to determine the severity of restrictions instead as most of the country’s population is vaccinated. This will avoid unnecessary panic among citizens and businesses while minimizing the impact on livelihoods, it added

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage