The Indian retail sector is going through an interesting phase. The past few months were muted, but the festive season and GST cuts are creating strong optimism. Let me walk you through the key trends in apparel and footwear, in very simple words, with actual data.
Current Retail Environment
The last few months (July–August 2025) were slow for retailers due to heavy rains and weak consumer spending. Malls did better than high-street shops, as customers preferred convenience and variety.
Online sales kept growing, thanks to discounts and larger assortments. But aggressive store expansion led to sales cannibalization, where a new store eats into the sales of an old one. Yet, managers across brands believe that September–December 2025 will see a strong recovery driven by festivals, weddings, and lower GST on some categories
Apparel – Signs of Recovery
Branded apparel showed growth in July due to End of Season Sale (EOSS), which drove strong YoY traction. Demand moderated in August, but still stayed better than last year. September will be soft due to the Shradh period, but festive demand is expected to revive footfalls.
Overall, mid- to high-single digit growth is anticipated for branded apparel. Key Data Points from Stores: Louis Philippe’s high-street store clocked 24% YTD growth (on a low base). Van Heusen’s better-located outlets grew 12% in July and 3% in August, despite others seeing a decline.
Allen Solly’s big-format store generated ₹3 crore+ monthly sales, but September saw a 12% YoY decline. TCNS “W” brand reported 19% YTD growth, with premium line “Wishful” contributing 8% of sales
Footwear – Still Struggling
Footwear has been weak for the last two years, and the latest quarter showed no major improvement.
Bata: Revenue declined sharply in July–August, with core (leather & formal) share dropping from 35% to 25%, while sneakers rose from 15% to 17%.
Metro Brands: High-street stores are more productive, generating ₹8,000–₹13,000 per sq. ft. per month, but growth was flat in July–August.
Mochi: Footfalls fell due to heavy rains, but the brand is still tracking 10–15% growth target. Store managers are hopeful that GST cuts + festive sales will revive demand, but near-term growth may remain flat
Value Fashion – Affordable Clothing
This segment (budget fashion) continues to do well, though competition is intense.
Zudio: Sales dropped in some locations because of new stores opening nearby.
Intune (Trent’s format): Strong performer with ₹7–8 crore monthly sales, 20% conversion rate, and over 50% repeat customers. Go Colors: 50–70% of sales are from repeat buyers, but leggings (once 50% of sales) are now only 30%, as fashion trends shift
Consumer Trends You Should Note
Repeat customers are very important, now contributing 30–50% of sales across brands. Impulse buying is rising in high-street areas. NRIs (Non-Resident Indians) are driving sales in premium outlets. Malls > High-street in terms of stability, but high-street gives better per-store productivity
Future Outlook – Why This Matters for You
Looking ahead, the sector has both opportunities and risks.
Opportunities: GST rate cuts + festive season + wedding demand. Premium and formal apparel seeing stronger traction. Repeat customers driving resilience in sales.
Risks: Too many new stores in the same area hurting old stores. Footwear demand still structurally weak. Online discounting continuing to pressure offline sales
Key Takeaways for Investors
Apparel sector looks stronger than footwear for the next few months. Festive + wedding demand could lift sales sharply in Oct–Dec 2025. Premium brands (Louis Philippe, Tommy Hilfiger, Calvin Klein) are showing better recovery. Value fashion (Zudio, Intune) is stable but faces cannibalization. Footwear may need more time, but brands like Metro could benefit once demand revives.
Final Word
The Indian retail sector is entering an important phase. If you are investing, focus on companies with strong brand loyalty (high repeat customers), efficient cost control, and premium positioning in apparel. The next quarter could be the turning point for retail stocks.
Happy and informed investing!
