Unlock 1.0: Retailers indicate sales degrowth of 64 percent
Kolkata/UNI: Lockdown relaxations did not benefit retailers as there was no significant surge in their business, according to a recent survey conducted by the Retailers Association of India (RAI) with more than 100 big and small retailers.
While malls witnessed a 77% degrowth, high street retail showed degrowth of 61% in business, across the country during the period of June 1 to June 15, 2020 compared to the corresponding period last year.
After the central government’s announcement in early June, most states permitted malls and high street retailers to reopen after a gap of more than 70 days.
However, it was found that consumer sentiment continues to be at a low. This is consistent with findings of a recent consumer survey by RAI which revealed that 4 out of 5 Indian consumers would reduce shopping expenditure post the lockdown.
The sentiment was reflected on categories like QSR and Restaurants (-70%), followed by Apparel and Clothing (-69%), Jewellery, Watches and other Personal Accessories (-65%).
The survey revealed that Furniture and Furnishing, Food and Grocery and Consumer Durables categories indicate signs of recovery in High Street stores with large size retailers ( >300cr sales) indicating sales growth of 14% Y-o-Y. At the same time, small retailers (< 300cr sales) are indicating a significant dip (-33%) in the same categories. However, businesses in Malls continue to be in deep red zone across all categories.
The trend was consistent across regions. Region-wise findings indicate that sales in the first half of June 2020 suffered the most in West (-74%) and North (-71%) India compared to the same period last year. East and South signaled a fall in sales at -63% and -59% respectively.
Commenting on the findings of the business survey, Kumar Rajagopalan, CEO, Retailers Association of India, said, “While we appreciate the Centre’s intent to restart the economy and open up retail with detailed guidelines under the Unlock 1.0 phase, it is important for states to embrace the mandate and ensure smooth and regular opening of all forms of retail. "
" Retailers are following stringent safety and hygiene protocols to ensure a safe shopping environment for consumers. We hope that in the coming days, restrictions across states will ease in a uniform manner, which is crucial for consumption to pick up. ”
Although retail is slowly opening up, the relaxations in restrictions are not uniform across states. A lot of retail still remains closed, which is hurting businesses and as a result, the economy.
The survey uncovers the urgent need for opening all forms of retail so India can start its journey back towards recovery.
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