An early onset of winter in north India has failed to translate into stronger sales for apparel retailers, as temperatures have not fallen sharply enough to spur demand for cold-weather clothing.
Retailers across key markets said that while winter arrived ahead of schedule, the mercury has remained above expectations, resulting in subdued consumer response impacting their sales up to 25% for winter season.
Apparel chains are grappling with higher-than-usual inventories of winter wear, including jackets, sweaters and sweatshirts.
“Winter came early, but it has not picked up. Winter is not giving a great response,” said Lalit Aggarwal, MD, V-Mart.
According to the India Meteorological Department (IMD)’s forecast, “no significant cold wave conditions are likely during the week December 24-31.”
In North India, winter typically sets in by the end of October, with consumers beginning to purchase winter wear immediately after Diwali.
“The delayed onset of winter in North India, arriving nearly 45 days later than usual in mid-December, has significantly impacted winter wear demand,” said Nitin Chhabra, CEO, Ace Turtle, which is the India franchisee of Lee, Wrangler and G-STAR brands.
With milder temperatures persisting, consumer purchases are now overlapping with end-of-season sales, leading many shoppers to postpone buying at full price in anticipation of discounts or a short cold spell, he said.
“While winter typically extends until February, this shift in mindset is expected to reduce retailer sales by 20-25% during the key months,” he added.
This year, while nights were colder, the day-time temperatures did not drop that much, limiting the need to purchase much winter wear, said Devarajan Iyer of Lifestyle India.
He added that while winter wear uptake was muted in the north, other parts of the country did well.
Winter is a critical season for the apparel industry, accounting for a disproportionate share of annual revenues. For some retailers it constitutes 40% of their annual sale.
Cold-weather garments typically command higher price points than summer clothing, making the season crucial for margins and profitability. A muted winter, therefore, has a direct impact on both top line growth and inventory cycles.
