North India retailers pivot to trans-seasonal apparel as warm winter triggers 25% sales slump
27 December 2025, Mumbai
Apparel retailers in North India are navigating a turbulent 2025-26 fiscal end as an unseasonably mild winter disrupts the sector's most profitable quarter. Despite an early arrival of the season, daytime temperatures in Delhi and surrounding regions have remained 2–5°C above normal, according to recent IMD data. This thermal anomaly has caused a staggering 20-25 per cent decline in winter-wear sales, leaving major chains like V-Mart and Lifestyle grappling with a surplus of heavy outerwear.
Strategic shifts in product portfolios
The crisis is forcing a ‘margin-led’ recalibration. Retailers are now pivoting toward ‘trans-seasonal’ clothing - lightweight layers and versatile athleisure - to offset the lack of demand for heavy jackets. ‘Winter typically contributes up to 40 per cent of our annual revenue, but with the persistent 'indoor chill' rather than a true cold wave, we are seeing a clear consumer shift toward functional, lighter fabrics,’ notes a senior executive from a leading value-retail chain.
Impact on 2026 fiscal outlook
While the India thermal and winter wear market is valued at approximately $13.5 billion, the current inventory pile-up could lead to aggressive early markdowns, potentially squeezing Q4 margins by 150-200 basis points. However, the sector remains optimistic for 2026, betting on AI-driven demand forecasting and a "Bharat surge" in Tier II cities to stabilize long-term growth.
V-Mart Retail: The value-fashion powerhouse
India's leading value-retailer, V-Mart operates over 530 stores primarily in Tier II and III cities. Specializing in affordable family fashion, it serves the ‘aspirational middle class’ with a focus on high-volume apparel. Despite seasonal headwinds, V-Mart reported a 22 per cent Y-o-Y revenue growth in Q2 FY26.
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