The years 2020 and 2021 represent the dark era for fashion retail pundits because it left them without anything to build a forecast upon.
As fashion retail is on a growth path lately and there is some data to chew on, the forecasts have made a comeback. And it's looking good.
How's The Weather?
Market watcher
ICRA, in a recent report noted that through July and August 2021, the fashion retail segment's merchandise sales were up to 70-85% of pre-Covid levels. However, the average ticket sizes are still lower than what they were in FY21
(April 2020 to March 2021).
FYI, fashion retail was asphyxiating since the beginning of the pandemic as high-street malls and other outlets were forced to down their shutters. Riding on the
wave back of rapid vaccinations and an overall economic recovery, the sector may close the year with a 23-25% revenue growth.
What's On The Radar?
The extent of rental concessions in Q1 FY22 has lowered by up to 55% compared to the first wave, salary cuts are being rolled back slowly, and equity investments have been up since FY21, giving fashion brands the prowess to increase Capex.
🛒 Though the pandemic has accelerated online shopping, fashion retailers will continue to focus on expansion through stores. Checkout girls and boys, get your CVs out.
