Markdowns to boost fashion retailer sales by 20%

 

The expected increase is due after a 15 percent drop in sales in the past few months, due to the financial crisis.

This winter’s markdowns are already up to 70 percent. In previous years, prices were lowered by this percentage only toward the end of the season.

Furthermore, a significant slowdown in fashion market growth rate is expected this year, according to Ramona Stanciulescu, Chief Executive Officer of the Rafar company, which operates Debenhams, Olsen, Mandarina Duck, Sacoor Brothers, Bally, Catwalk, Forever 18, Toi&moi, Kanz, and Pablosky stores.

“We believe that shopping budgets will be reduced, which will have two effects: part of the shoppers will cut more in volume, maintaining quality and buying fewer products, while the other part will focus on lower-priced brands, maintaining the shopping regularity,” she added.

While Rafar expects an increase in turnover this year, due to last year’s expansion, another fashion retailer, Dinasty, estimates a 10 percent drop in its business, according to the company’s Marketing Manager, Anca Tanasiciuc.