This growth means that this year’s annual revenue growth will be 23-25%.
The range of rent concessions in the first quarter of this year was up to 55 percent lower than that seen during the first wave of the pandemic.
According to the ICRA, improved vaccination rates are expected to help India’s fashion retail segment grow 15-17% year-on-year from July this year to March 2022. Capital investment for additional stores is expected to increase by more than 45% in 2021-22.
Pandemic spurred adoption Online retail in India, Most retailers report more than 50% year-over-year jumps.
The third wave, which peaks in October-November 2021, could reduce segment revenue from the ICRA base case by up to 40% in the third quarter of this year.
ICRA channel checks suggest that in July and August of this year, the segment witnessed a healthy recovery of up to 70-85% of pre-COVID sales.
This current recovery is in contrast to the relatively modest recovery (up to 48-50% of pre-COVID sales) reported in the second quarter of the previous fiscal year after the resumption after the first wave.
In addition to material costs, retailers typically have three main cost components: rent, employee costs, and sales / promotion costs, which account for about 30% of total costs.Rental negotiations during the first wave were chalked until March 2021, but fashion retailers again Force majeure The second wave and the rent clause renegotiated with the rental agreement for the current fiscal year after the blockade.
However, ICRA added that the range of rent concessions in the first quarter of this year was significantly lower by up to 55% than that seen in the first wave.
Fiber2Fashion News Desk (DS)
Indian fashion retailers see encourage early recovery trends: ICRA
Source link Indian fashion retailers see encourage early recovery trends: ICRA