Apparel retailers to post operating losses in Q1FY21 as revenues plunge 80%

Cost cutting efforts unlikely to offset sharp revenue fall

After a weak March quarter (Q4), apparel retailers are expected to face the brunt of the lockdown in the June quarter, with revenues falling over 80 per cent as compared to the year-ago quarter. Unlike retailers, such as Avenue Supermarts, which get a majority of sales from groceries, apparel retailers have been operating with a minimal number of stores and are held back by ongoing restrictions. 

With just one month of sales in the quarter, analysts at Antique Stock Broking believe that general trade and e-commerce gained market share at the expense of modern trade, as consumers avoided crowded places. 

The June