Many retail companies have made huge cuts in the price for the stock. Goods and Services Tax (GST) will be implemented in a few weeks. Because of this, retail companies have started this year off and season sales a month ago. Sportswear brand Puma is offering 10% extra discount on its stores with 40% flat discounts. Alan Solly has launched Bay One, Get One Free Scheme for its members in Pre-GST and Off Season Sale. Liis gives free two items for buying two goods, while flying machines are discount of 50 percent and Peppe Jeans is running ‘By Three, Get Three’. GST Council has decided to impose a tax of 12% on a man made apparel of more than Rs 1,000, while it now has a 7% tax on it.
The differences in tax will cause huge loss to the brand. Therefore, we are trying to reduce the inventory before GST. We are giving discounts to remove the old stock. The season of and off season runs from July 1 to August 15, but this year we will continue this from June 10 to July 20th.
Adidas has also made the annual sales period a month earlier. She started cell year this year from June 2. The cell season has started before due to GST. So far we have received good response on this. A distributor of brands such as Livis, US Polo Association and Peter England said that brands are nervous. They are asking the distributors to reduce the stock as much as possible from the distributors last week. They said that despite the remaining stock, a loss of 5% may have to be raised.
Brands like Shoppers Stop, Charles & Keith, Chemistry and Forever 21 are also offering discounts or promotional offers. At the same time, over 50 brands like Flopkart, Aeropostal, Vero Moda, Under Armor, Kenneth Cole and Crocx are running 9-day sales. Pettym Mall has started a pre-GST clearance cell lasting for one month from June 13. He is offering 50% discount on footwear and accessories and 25% cashback. The company refused to comment on this news.
GST Council has increased the excise credit on the remaining stock from 40% to 60%. Despite this, huge discounts are being given on old stock. Retail companies and brands want to keep the old stock at least to avoid complicated legal formality of GST. They want to avoid the hassle of claiming input credit in new GST systems.