Raymond expects gradual pick up after lockdown

The ongoing lockdown imposed to contain coronavirus pandemic will only have a "short-term" sales impact on apparel industry, while softening commodity prices will support overall profitability during the current fiscal, according to a top official of Raymond Ltd.

The branded fabric and fashion retailer also expects a gradual pick up across various retail formats once normalcy returns after the lockdown is lifted.

"As we are all aware that due to the lockdown in the entire country, all our point of sales are shut impacting our business in short term. However, we are confident that once the lockdown period is over, the sales would gradually pick up across various retail formats in the country," Raymond Group CFO Sanjay Bahl told PTI.

He, however, said it is not all gloom and doom for the sector.

"While there is a slump in demand due to the pandemic, commodity prices have softened which would support in the overall profitability during the current fiscal," Bahl said.

When asked if apparel retailers are in for heavy discount sales once the lockdown is over to clear stocks, he said, "As the current situation is highly unpredictable, we have to wait and see how things unfold in the coming weeks.

"The month of May might witness some consumer promos as brands will try to make up for the lost sales. We do expect an early onset of end of season sales akin to what happened during GST implementation in the country."