Indian Fashion Retailers Hit Hard by Soaring Tomato and Onion Prices
Fashion retailers in India are experiencing a decline in sales and foot traffic as skyrocketing food prices, particularly for tomatoes and onions, have tightened consumers' purse strings. The clothing and shoe retail sector, worth an estimated $62 billion, is facing concerns about the health of consumer spending, which was already slowing prior to the surge in food prices. Retailers are offering steeper discounts and extending sale periods in an attempt to boost sales, but customers are purchasing fewer items. While some sectors, such as premium SUV sales and cinema revenues, are still thriving, worries are mounting about the impact of inflation and high interest rates on consumer spending. The upcoming festival season may provide some relief, but the overall outlook remains uncertain.