Retailers are concerned over the tepid response to end of season sales (EOSS) and are offering discounts of up to 75% amid worries they will need to extend the period as business is yet to reach last year’s levels. Brands such as Shoppers Stop, Reliance Trends, Lifestyle, Pantaloons, VMART, Max, and Westside have started their sales earlier this year, with a decline in revenue of 5-15% YoY. Higher discounts are reflective of the relative stress in underlying inventory, according to ICICI Securities. Most brands have kicked off EOSS two weeks early due to a revenue decline of 5-15% YoY in the April-May period. Retailers traditionally launch EOSS by June end, before fresh season merchandise hits their shelves. However, brands started the sale mid-June and it’s likely to continue till mid-July. While there has been some improvement since May due to the wedding season, the revenue till mid-June is still not at the 2022 level. Rain during weekends has also played spoilsport in Delhi and Mumbai, affecting footfall. The next few weeks will be crucial for retailers as they look to clear out inventory before new-season stock is due to come in.
