New Delhi, Jun 10 (KNN) As retailers climb back on their feet under Unlock 1.0, the industry might have to brace itself for a sustained downturn, as a majority of consumers plan to reduce their shopping expenditure post-lockdown, said Retailers Association of India (RAI) in its survey.

According to a consumer sentiment survey by RAI along with Litmus World covering 4000 respondents, 78 percent of them said their shopping expenditure will decline. While 41 per cent said their shopping expenditure will decrease “substantially”, 37 per cent responded that it will decrease “slightly”, 16 per cent said it will remain the same and only 6 per cent said their spending on shopping will be higher.

Only 33% respondents are excited to shop post lockdown, it added.

62% respondents said they were inclined to visit stores within the first three months post lockdown. This number goes up to 75% in tier 2 and tier 3 cities. However, 78% said their shopping expenditure would decrease. Only 6% said they would increase their spending.

“This would mean a slower recovery for the retail sector, which has seen zero revenue and sustained losses over the last few months,” RAI said in a statement.

Commenting on the survey’s findings, Kumar Rajagopalan, CEO, Retailers Association of India, said, “With most consumers demonstrating hesitation to resume shopping in the coming months, the retail sector needs the support of all stakeholders to revive sentiment.

''Retailers will need to prioritize safety and hygiene measures to reassure consumers that they will receive a safe shopping experience. Despite a strained quarter, the sector will have to make investments in implementing the necessary safeguards to win back consumer confidence,” he added.

Food and grocery along with apparel and clothing topped the chart as 52 per cent of consumers listed these items as primary on their shopping list.

These were followed by consumer durables/electronics with 31 per cent of respondents saying it to be important, while 25 per cent indicated beauty, wellness and personal care as priority, the survey added.

“The Indian consumer’s optimism will revive the retail economy within 3 months of the unlock phase,” Litmus World Head of Marketing & Partnerships Khushaal Talreja said.