Global Threads

Apparel - - Contents April 2017 -

A round-up of im­por­tant news and events

In a re­cent rev­e­la­tion, fash­ion re­tail­ers have re­alised that the much famed End Of Sea­son Sales do not gar­ner the same busi­ness any more as cus­tomers pre­fer to shop from fresh stock. The re­think of strat­egy has come in the wake of the con­clu­sion that a longer du­ra­tion of sale doesn’t nec­es­sar­ily trans­late into higher sales.

“From this sea­son on­wards, our un­der­stand­ing is that we need to change track. Cus­tomers come and shop for new ranges and ser­vices, not prices,” said Shop­pers Stop’s man­ag­ing direc­tor Govind Shrikhande.

Clear­ing in­ven­tory to make room for new stock is the main rea­son re­tail­ers hold sales rather than to boost earn­ings. Rev­enue from End Of Sea­son Sales ac­counts for about 50 per cent on av­er­age of a re­tailer’s to­tal busi­ness dur­ing the quar­ter that a sale falls in; a ma­jor chunk of that comes in the first week of the sale.

The phi­los­o­phy go­ing ahead will be start­ing and end­ing sales quickly to fo­cus on new fash­ion in­stead, ac­cord­ing to the re­tail chain

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