Key Points
The industry was unprepared for the sudden demand slump after the festive season in 2022, leading to stockpile..
Apparel retailers have started to write-off unsold inventory due to product obsolescence, sourcing closer to the season and have reduced their sourcing period of merchandise from 120-150 days earlier to 60-90 days to reduce such risks of obsolescence with demand yet to pick up...
Departmental store chain Lifestyle International chief executive Devaranjan Iyer said several retailers are forced to write-off inventory due to obsolescence and have cut sourcing periods to reduce such risks in the future..
Obsolescence has increased for the industry and this will lead to margin erosion for sure," he said.. Apparel retail business has been impacted for more than five quarters now and the industry was not at all prepared for the sudden demand slump after the festive season in 2022..
Apparel retailers have run extended discounting periods in 2023 and will continue it for the current end of season sale, apart from additional discounts offered in ecommerce marketplaces and the upcoming Republic Day sales this weekend...
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