Despite inflationary atmosphere and economic meltdown, India’s major apparel retailers like Shoppers Stop, Arvind Ltd and Promart have pegged a healthy like-to-like growth in the range of 12-15 percent for the first quarter ended 30 June 2013. Like-to-like growth is the increase in sales from same store in comparative quarters.
According to industry experts, reasons for the considerable growth amidst slowdown include a stable maximum retail price (MRP) to increase in promotional schemes by apparel retailers.
"The raw material prices have also remained stable. Moreover, the impact of excise duty was also not there in the current fiscal thereby bringing down the MRP. In fact, some brands even reduced their prices while others offered promotional schemes and discounts much before the end-of-season discount sale began. This has led to an industry like-to-like growth of 12-15 per cent," said Rahul Mehta, president of Clothing Manufacturers Association of India.
(Source: Business Standard)