Motilal Oswal: Apparel Retail Channel Check – Slower Recovery Versus Others
Mens shirts section on display inside Big Bazaar. (Photo: BloombergQuint)

Motilal Oswal: Apparel Retail Channel Check – Slower Recovery Versus Others

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We attended a webinar and conducted channel checks across multiple apparel retailers to ascertain current business trends in the segment.

Growth for apparel retailers is far weaker than other sectors with Q2 FY21 average revenues down 45-55%.

However, month-on-month growth has improved consistently with Q2 FY21 exit run-rate at 65-70% and October 2020 at 75-80%.

Sluggish recovery and sticky inventory is creating liquidity woes. Thus, last year’s trend of store additions has reversed to store closures.

Click on the attachment to read the full report:

Motilal Oswal Retail Channel Check.pdf

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