Value Retailers Outshine Premium Apparel Chains

Shifting Trend

- VIVEAT SUSAN PINTO

VALUE APPAREL RETAILERS reported stronger revenue growth in comparison to premium retailers in FY25—at a time when discretionary spending has been weak, especially in urban areas—data showed. While most premium retailers are hoping demand conditions will improve in FY26 on the back of fiscal and monetary policy measures, some experts say that it may show up with a lag.

Firms such as Vishal Mega Mart, V2 Retail, V-Mart Retail, and Bazaar Style Retail—all value fashion retailers—reported double-digit revenue growth between 17% and 62% in FY25, even as premium retailers such as Vedant Fashions and Arvind Fashions posted single-digit revenue growth (1-8%) and Aditya Birla Fashion saw a sales decline of 47.5%. Same-store sales growth (SSG) for most of these value retailers was in the region of 12-29% in FY25, while SSG for premium retailers remained largely flat.