In its third quarter ended December 31, 2023, Spencer's Retail showed mixed results compared to the previous quarter and the same period last year.

The company’s revenues grew by 14.41 per cent to Rs 660.26 crore during the year compared to Q2FY2024. On a Y-o-Y basis, the company’s revenues grew by 2.84 per cent in Q3 FY2023.

Spencer’s Retail’s net loss narrowed down by 26.99 per cent Q-o-Q and 17.09 per cent Y-o-Y, reaching Rs 51.20 crore. Its EPS improved by 26.96 per cent Q-o-Q and 17.06 per cent Y-o-Y to Rs 5.69.

Compared to the same period last year, Spencer’s Retail’s total income declined by 6.00 per cent to Rs 1819.48 crore during the first nine months of FY2024.

However, its net loss narrowed down by 24.33 per cent to Rs 185.46 crore. The company’s EPS also improved by 24.40 per cent, standing at Rs 20.60.

However, the company's overall income for the nine months of FY2024 remains lower than the previous year and it continue to operate at a net loss.

Expanding its presence across the country, luxury clothing brand Blackberrys has opened its 54th brand store in Lakhimpur, Uttar Pradesh.

Situated near Yuvraj Palance, this new store promises to elevate the fashion scene in Lakhimpur by offering Blackberrys' signature style and high-quality clothing.
Launched in 1991, Blackberrys is a leading Indian menswear brand owned by Mohan Clothing Co Pvt Ltd.

Founded by brothers Nitin Mohan and Nikhil Mohan, the brand boasts a turnover exceeding Rs 900 crore.

With over 370 stores across India, Blackberrys offers a wide range of fashion and occasional wear for men, including trousers, blazers, khakis, t-shirts, shoes, innerwear, and accessories.

Despite facing a tough market with subdued consumer spending, Bata India held its ground in Q3 2023.

While the brand’s profits dipped by 30 per cent Y-o-Y to Rs 58 crore, its revenues remained stable at Rs 903 crore, driven by a strategic focus on premium segments. The company acknowledged its expenses increased from Rs 798 crore to Rs 836 crore due to significant investments in brand building and technology upgrades.

Notably, Bata India expanded its physical and digital presence by opening 54 new stores and renovating existing ones, demonstrating its commitment to customer experience. Despite the current headwinds, CEO Gunjan Shah expressed confidence in the company's long-term growth prospects, highlighting its continuous investments in product innovation, customer engagement, and market reach.

E-commerce giant Amazon India has joined forces with the government's Swachh Bharat Mission (Clean India) by launching the ‘Swachhata Store.’ This online platform offers discounts on over 20,000 cleaning products, empowering Indian sellers, SMEs, and manufacturers.

Manish Tiwary, Vice President - Consumer Business, Amazon India, highlighted the store's alignment with their "4S commitment to cleanliness": seamless smart cleaning, sanitation for everyone, strong commitment to cleanliness, and environmental safeguarding.

Gajendra Singh Shekhawat, Jal Shakti Minister hailed the initiative as being instrumental in achieving a healthier, cleaner, and more prosperous India. He emphasised the power of collective effort in securing a brighter environmental future.

This launch aligns with Amazon's broader goal of transitioning one million local Indian retailers and neighborhood stores to online platforms by 2025. The ‘Swachhata Store’ not only promotes cleanliness but also empowers local businesses and contributes to a more digital India.

01 February 2024, Mumbai

Indian apparel retailers are facing a complex challenge: unsold inventory, obsolescence, and a shifting consumer landscape that is used to discounting. To cope with the evolving situation apparel retailers are adopting various strategies to navigate the complex retail maze.

Discounting dilemma

Retailers are running extended discount periods, but even deep slashes aren't clearing all the unsold stock. This impacts margins. Shoppers Stop, for instance, incurred a 60-bps gross margin hit due to write-offs. This trend is likely to continue, with upcoming sales further fueling the discount game. Shoppers Stop’s Kavindra Mishra, the CEO, admits to Rs 9 crore in unsold inventory write-offs. They're now sourcing closer to the season and discounting heavily.

Moreover, over-discounting causes consumers to expect sales always, making them less likely to pay full price, impacting profitability. Then there is the ‘sale fatigue’ phenomenon, with consumers waiting for the next markdown before purchasing, creating a vicious cycle of discounting.

Inventory blues

With demand not picking up, retailers are grappling with unsold inventory becoming obsolete. To cope with the situation, they are shortening sourcing periods. Reducing lead times from 120–150 days to 60–90 days allows more agile sourcing closer to the season, minimizing obsolescence risk.

Lifestyle International is a prime example. Devarajan Iyer, CEO, of Lifestyle International points out that they have cut sourcing periods from six to seven-month orders to two to three months for an agile response to real-time demand. This helps avoid inventory bloat and obsolescence.

On similar lines, V-Mart Retail’s Lalit Agarwal, MD says they now plan 20 percent of their inventory for just 45 days, allowing quick adjustments based on market fluctuations and fast fashion trends. This approach helps retailers react to changing trends and adjust inventory accordingly, preventing stock from getting stuck for long periods.

Shifting consumer’s priorities

The pandemic's impact on spending habits is evident. Consumers are now prioritizing experiences like travel over simply buying new products.

This trend further contributes to the slowdown in apparel sales. Moreover, higher awareness about sustainability and ethical fashion choices is leading to a shift towards fewer, better-quality purchases. The rise of online shopping has changed the buying journey, with consumers researching extensively before committing to a purchase.

Navigating and moving ahead

So how do retailers move ahead in the current market scenario? One way is adapting to the changing consumer landscape to survive and thrive.

Developing innovative marketing strategies to cater to the experience-driven consumer will be crucial for future success. This involves personalized marketing, understanding individual preferences, and offering targeted recommendations that foster brand loyalty and encourage full-priced purchases.

Omnichannel presence and integrating online and offline experiences seamlessly is key to cater to the evolving customer journey. Moreover, sustainable and ethical practices and embracing eco-friendly and responsible production align with changing consumer values and attract conscious shoppers.

Striking feature

The other important change retailers need to make is embracing technology for better inventory management and demand forecasting. Agile inventory management will lead to shorter lead times, real-time demand forecasting, and data-driven insights, which are crucial to preventing obsolescence and stockpiling.

Changing landscape: Indeed, Indian apparel retailers must adapt to the shifting sands of consumer behavior. Discounting alone won't suffice.

Embracing the experience economy, offering personalized services, and building brand loyalty through sustainable and ethical practices will be the keys to navigating the retail maze and emerging stronger in the experience-driven future.

Interior designer and Founder, Eshita Marwa has transformed Zwaan's new Delhi store into a 500 sq. ft. space dedicated to celebrating diverse female beauty and self-expression. Seamlessly integrating the concept of inclusive fashion into its design and clothing, the store has hidden storage units shaped like female bodies to subtly celebrate different body types. Its beige walls and subtle terracotta accents create a serene atmosphere, reflecting the brand’s values of grace, elegance and constant reinvention as envisioned by Tanvi Sawlani, Founder.

Complemented by terracotta and large windows, the store’s exterior is designed in a soft neutral shade. Its interiors boasts of terrazzo flooring that blends seamlessly with beige walls and curved ceilings. Each element of the store is handcrafted in India, reflecting Marwa’s passion for supporting local artisans.

The store displays garments and accessories along the left side, leading customers to undulating trial rooms bathed in natural light. The garments are showcased on customised clothing racks made from wood, stone, and concrete with brass channels. The store also houses locally sourced artifacts and decorative lights, embodying Marwa’s creative vision and personality. The earthy and minimal design allows the clothes and accessories to shine, while celebrating self-expression and ethical responsibility.

Bengaluru-based premium western womenswear brand, Blissclub is strategically expanding its physical presence across major Indian cities. Currently operating nine stores in five cities, the brand is targeting Delhi, Bengaluru, Mumbai, Pune, Chennai, and Hyderabad for its future expansion.

Blissclub plans to open stores in both malls and high-street locations to cater to diverse customer preferences, says Naman Sharma, Head-Retail. Having a thriving online business, the brand looks to complement it with a robust offline retail network, he adds.

Blissclub has developed an in-house store location selection framework to identify the best locations for opening new stores. The brand is currently focusing on Tier I cities before expanding to Tier II cities. Its direct-to-consumer (D2C) website is a major revenue driver, and it also has a presence on major marketplaces like Myntra, Amazon, Flipkart, Nykaa Fashion, Tata CLiQ, and Ajio.

Blissclub is currently focusing on strengthening its footprint in Tier i cities before extending its reach to Tier ii cities. The brand's decision-making process for store location selection is guided by factors such as catchment attractiveness, the performance of relevant brands in the vicinity, facade area, store size, and visibility from the thoroughfare.

Blissclub has also entered into a successful multi-brand outlet (MBO) partnership in Delhi, which has benefited both the brand and its MBO partner.

Soon after completing its initial investment of Rs 10,500 crore, Swedish furniture giant, IKEA plans to initiate a fresh round of investment in India.

The company plans to expand its presence, increase sourcing from India, and cater to the growing demand for home furnishing in the country.

Currently, IKEA operates stores in Hyderabad, Mumbai, and Bengaluru, with two more planned in Delhi-NCR by 2025. The retailer plans to set up new stores in Pune, Chennai, Kolkata, Lucknow and Chandigarh..

Committed to boost local sourcing, IKEA has a current 33 per cent share in local sourcing which it plans to raise further. The company sees potential for growth in textiles, plastics, metals, and wood-based furniture production in India.

Online sales contribute significantly to IKEA's India business, accounting for 25 per cent of total sales.

Owned by Reliance Retail, ethnic wear brand Avantra by Trends has opened 71st store in Phoenix Marketcity mall, Kurla West, Mumbai. The store offers a diverse selection of sarees, lehengas, blouses, kurtas, dress materials, bridal collections, traditional jewelry, and accessories.

Sudhir Dnyanval, Head - Business Development, Avantra by Trends, says, the store is a haven for traditional connoisseurs, offering a wide range of options for every occasion.

Launched in September 2021, Avantra by Trends has grown rapidly, expanding its presence to over nine states. The brand aims to cater to the growing demand for authentic and stylish ethnic wear for women.

Founded in 2006, Reliance Retail is a leading Indian retail company with a vast network of over 18,650 stores across various formats. The company operates popular brands like Reliance Trends, Reliance Jewels, and Ajio, offering a diverse range of products to customers across India.

This new store opening highlights Reliance Retail's commitment to expand its fashion and lifestyle brands to cater to the evolving preferences of Indian consumers. With its focus on quality, tradition, and style, Avantra by Trends is poised for further growth in the competitive ethnic wear market.

30 January 2024, Mumbai

Indian retailers faced a lackluster holiday season in December 2023, with overall sales growth of just 4 percent compared to the previous year. Even with holiday discounts and the wedding season boosting some sectors, consumer spending remained muted across most categories.

Interesting data-points

Sales in December grew by a meager 4 per cent despite discounts and the wedding season. Sales across South India soared by 7 per cent while sales in North, West, and East India lagged behind. The sales growth in South India was driven by high-value purchases like cars, houses, and electronics on EMI, while discretionary spending took a hit.

Like-for-like sales in existing stores dipped by 5 per cent as retail continued to struggle with sluggish demand due to inflation. 

With inflation showing no signs of abating and global economic uncertainties looming, the upcoming months could be challenging for retailers. Adapting to changing consumer preferences and offering attractive financing options for high-value purchases may be the keys to weathering the storm.