Winter wear sales pick up after warm November slows start

Unpredictable weather patterns continue to pose challenges for inventory management, as retailers in North India now face shorter, but more intense winter seasons.

To be sure, apparel sales have been reporting some softness, as consumers spend on other goods and experiences. Sales of apparel grew 5% year-on-year in September, data shared by Retailers Association of India (RAI) showed. Overall retail sales rose 5% following a “lacklustre" growth from April to September, according to the RAI data. Consumers are willing to spend where they see value and spend selectively.

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“The last few days of winter have been okay from a buying perspective. Fashion retailers and brands are becoming smarter about how they manage inventory, how they look at weather patterns, etc.  We are part of that ecosystem. The last 10 days I think have been better compared to November," Nandita Sinha, CEO, Myntra, told Mint.

Dropping temperatures

North India experienced its warmest November on record in 2023, with average temperatures exceeding 20 degrees Celsius for the first time since 1901, per data released by the India Meteorological Department (IMD) early December.

India is likely to see above-average temperatures during the winter season, that is from December to February, IMD said.

"The warmest November on record in North India underscores the growing challenge for Indian retailers to adapt to erratic weather patterns. Traditional winter inventory planning is no longer sufficient, as consumer demand shifts towards lighter, versatile apparel rather than heavy winter wear," said Nitin Chhabra, CEO, Ace Turtle.

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Bengaluru-based retail company Ace Turtle is the exclusive licensee for Lee, Wrangler, Dockers in India.

“As an industry, we should embrace advanced analytics and rethink strategies to balance inventory management, sustainability, and evolving consumer needs in this volatile climate environment," he said.

Several retailers responded to the slow start by launching mid-season sales, including Black Friday events, to clear old and new winter inventory with significant discounts. Last winter's warmer-than-expected December left retailers with excess inventory, which they discounted during the recent sales.

Apparel industry growth

India’s organized apparel retailers are set to clock 8-10% revenue growth this fiscal year on higher demand stemming from a normal monsoon, festive and wedding season and increasing preference for fast fashion, ratings firm Crisil Ratings estimates.

“Though akin to last fiscal, revenue growth will be slower than the compound annual growth rate of 11-12% seen between fiscal 2018 and 2023, making retailers cautious at opening new stores. Instead, retailers will focus on enhancing efficiencies at existing stores, controlling costs and limiting reliance on external debt," it said in September.

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Pre-winter and summer months have been “challenging", said other retailers.

"Winter is trading slightly differently, giving us some confidence that this season may be good," said Akhil Jain, executive director, Madame.

The retailer has introduced more light jackets this winter to cater to less intense cold days.

“Winters are severe but duration is getting shorter, which becomes a challenge for us. However, we do see North Indian consumers still buying winter wear as they are more fashion-forward and look forward to upgrading their wardrobe during festivities. We do see some slowdown in east and west India," he said.