the outlet just Rs 2.25 crore, an 8% drop over the same period last year, with customer footfalls lower by 12%. But collections have caught up and the outlet has made R8.5 crore in the four weeks to January 26. That compares well with sales of Rs 11 crore in seven weeks last year.
French menswear retailer Celio confirms it has seen a 15% like-to-like rise at its end-of-season sale.
Marks & Spencer, also at High Street Phoenix, has done well, posting a 15% like-to-like increase so far. The store clocked sales of R18 lakh just on Republic Day but even weekdays are seeing collections of R8 lakh on an average. What’s clearly helped is that UK-based brand’s flat 60% discount on selected products.
Rajneesh Mahajan, COO, Inorbit Malls, says the response to sales at the mall has been good with a 20% rise in footfalls.
India Ratings & Research points out that if retailers chase aggressive revenue targets and acquire market share by resorting to longer discounting periods, margins could be adversely affected. The agency believes the industry has passed on the benefits of excise duty cuts on branded apparel to customers by way of discounts to prop up volumes.