Retail apparel sales have gone down last month. Further, large format retail chains have stopped placing new orders. Additionally, most of the retail chains are also seeking extension of credit period. Shoppers Stop, Lifestyle and Pantaloons are among the large retailers affected by the slow sales, according to industry experts.
“The credit period is getting extended to 60 days from 45 days. The financial crisis has made it difficult for large players to fulfill their payment obligations and new orders are blocked or postponed as consumer demand is also falling,” an industry source said.
“This year, between April and October, apparel business in the organised retail grew at 15 per cent per annum when compared with the corresponding period last year in value terms. However, November has seen a fall of 10 per cent when compared to November 2007,” said an industry source.
In India, apparel constitutes about 10 per cent of the USD 37 billion retail consumer market.