29 August 2023, Mumbai
Soaring prices of tomatoes and onions have pushed food inflation to a three-year high in India.
This has squeezed household budgets and dampened consumer spending, especially on discretionary items like clothing and footwear.
Fashion retailers across India are feeling the pinch, as shoppers stay away from malls and urban shopping districts.
Sales are slow, foot traffic is low, and many brands are offering deeper and longer discounts than usual to attract customers.
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"The situation has also raised doubts about the recovery of consumer spending, which had already been slowing down before the food price shocks," said a Reuters report.
The clothing and footwear retail industry is facing a tough challenge amid the bleak economic outlook.
Some stores are resorting to unconventional methods to boost sales, but it remains to be seen if these efforts will be enough to revive the sector.
