Organized Brick-and-Mortar Apparel Retailers to achieve 7-8% revenue growth in FY23: CRISIL report


22 September 2023, Mumbai

Expansion of Retail Stores in Tier II and III Cities to Boost Growth

Organized brick-and-mortar apparel retailers in India are projected to achieve a 7-8% increase in revenue in the current fiscal year (FY23), according to Crisil.

This growth is expected to be driven by heightened demand during the festival and wedding seasons, despite the impact of inflation on discretionary spending during the initial quarter.


Furthermore, the expansion of retail stores, including in Tier II and III cities, is set to contribute to growth in FY23 and in the foreseeable future.

Although there is a slight moderation, the anticipated revenue growth remains comparable to the levels seen before the pandemic, which were in the range of 8-9%. In the previous fiscal year (FY22), retailers achieved an impressive 38% growth rate, albeit starting from a lower base.


This growth was fueled by a rapid recovery from the pandemic-induced downturn and higher profits resulting from significant increases in raw material costs, which were passed on to consumers.

The expansion of retail stores in Tier II and III cities is a key growth driver for organized brick-and-mortar apparel retailers. The growing demand for branded apparel in these markets, coupled with the rising disposable incomes of consumers, is creating a favorable environment for retailers.

Favourable sentiments

Overall, the outlook for organized brick-and-mortar apparel retailers in India is positive.

The expected revenue growth in FY23 is a testament to the resilience of the sector in the face of challenges such as inflation and rising costs.

The expansion of retail stores in Tier II and III cities is another key growth driver that is expected to sustain the sector's growth in the coming years.

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