Reuters

Across India`s malls and high streets, the mood at fashion shops is sombre - foot traffic is down, sales are low and many brands are embarking on steeper-than-usual discounts for longer-than-usual periods of time.

The culprit? Sky-high food inflation after erratic monsoon rains damaged crops and disrupted supply chains.

Prices for tomatoes have rocketed, at one point close to five times since June, while those for onions, another staple in Indian cooking, have risen 80% in some areas like New Delhi. Food inflation for July hit a staggering 11.5%, far more than 4.6% in June and marking a three-year high.

As purse strings tighten, the pain felt by India`s clothing and shoe retail sector - worth an estimated $62 billion in 2022 according to Euromonitor International - is fanning concerns about the health of consumer spending which had already been slowing even before the shocking rises in food prices.

At a Zink London outlet in a Mumbai mall, for example, staff at the domestic women`s clothing chain have been calling 10 customers each per day and sending product pictures via WhatsApp in an effort to bolster sales, according to a store manager who declined to be identified.

Interviews with managers at 25 other fashion outlets across four Indian cities who spoke on condition of anonymity painted a similar downbeat picture.

Popular Indian and foreign brands including shoe retailers Japan`s Asics and Skechers USA have been offering steep discounts, some as much as 70%, far bigger than normal and have also been extending their sale periods, said several store managers.

Even when customers do purchase fashion items, they buy far fewer than they once would have, some of the managers also said.