Apparel retailers on weak footing as Covid-related curbs dent sales

Higher raw material costs will put pressure on profitability

After a strong start to the March quarter, the imposition of restrictions following the second wave of Covid infections has dented the sales growth of most segments with apparel retailers being the worst impacted. Sales update by various retailers for the March quarter conveys strong growth over the year ago quarter which had a weak base.

While grocery retailers such as Avenue Supermarts have reported a 17 per cent growth in the quarter, Titan (jewellery) saw sales spurt 60 per cent, quick service restaurants too are expected to have posted double-digit growth. Among discretionary categories, footwear, innerwear/athleisure and kitchen appliances