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Gloom for Myntra, Pepperfry, others as sales fall by 20%

The downturn is expected to continue as people defer discretionary spending and companies cut marketing costs and discounts to increase runway in order to survive the Covid-19 pandemic, people in the industry said.

, ET Bureau|
Last Updated: Mar 23, 2020, 08.30 AM IST
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Online retailers are now putting a stop to any plans on expansion as the sales figures fall.
BENGALURU: Specialised online retail verticals, such as Lenskart, Myntra, Nykaa, Pepperfry, FirstCry and Zivame, which have a significant offline presence, have seen sales fall as much as 20% over the last two weeks, investors in the know and industry experts told ET.

In some cases, the decline has been as high as 35%, they said.

The downturn is expected to continue as people defer discretionary spending and companies cut marketing costs and discounts to increase runway in order to survive the Covid-19 pandemic, people in the industry said.

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“Discretionary spending has taken a hit,” said Ambareesh Murty, CEO of Pepperfry. “Right now, on a week-on-week basis, we are holding steady, but we do expect that in the next 2-4 weeks consumer spending will come down further,” he said.

Expansion plans are also on hold for the next two months, Murty added. Offline retail constitutes about 30% of Pepperfry’s business. “These retail studios have seen footfalls drop by a third,” he said.

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