Although this decline is not the steepest in the index's history—with February 2022 experiencing a 29.6 per cent reduction—the significant drop of that month was attributed to the exceptional growth during the 2020-21 lockdowns, resulting in a skewed YoY comparison. The recent dip in January 2024, however, is indicative of genuinely weak demand.

The slump in sales was felt across various categories, notably in clothing, which suffered a 10.8 per cent YoY decrease.

Following the surge in e-commerce during the pandemic, revenues have been on a downward trajectory, declining 10 per cent YoY in 2022 and 3 per cent YoY in 2023. IMRG forecasts a stagnation with 0 per cent YoY growth projected for 2024.

As the post-Christmas period unfolded, growth rates have significantly lagged behind those of the previous year. This was evident during the payday week commencing January 21, which saw a decline of 9.4 per cent YoY, a stark contrast to the 11.1 per cent decline recorded in the same week in 2023. The 7 per cent decline for January marks the second-lowest rate since the skewed lockdown comparison period in early 2022, with the lowest being December 2022's 9.3 per cent YoY drop.

Fibre2Fashion News Desk (DP)