Continued slide of Retail sector to have crippling effect on manufacturing
New Delhi, Aug 11 (KNN) Local lockdowns and weekend curfews have hampered the growth and recovery of retail business in the month of July, said a survey by Retailers Association of India (RAI).
As per the RAI survey, signs of marginal recovery were observed in the month of July. After witnessing losses of more than 80 per cent in the month of April, these losses have narrowed to 63 per cent in July.
The second half of July 2020 shows continued recovery for a few categories such as food & grocery and consumer durables. However, categories such as apparel & clothing, sports Goods, and Beauty & Wellness have also not yet recovered.
''With Unlock 3.0 now being rolled out across the country, there is a possibility of significant sales recovery for retail businesses. However, localised lockdowns, weekend curfews and not allowing formats like food courts and cinema halls to restart are creating roadblocks on the path to revival,'' said Kumar Rajagopalan, CEO, Retailers Association of India.
''It is observed that in places where the local authorities have been supportive, there is confidence in the minds of consumers. If the retail industry continues to be under pressure, it will have a serious rippling effect on other sectors such as manufacturing, entertainment and artisans among others,” he added.
Region-wise, impact on business, retailers in East India having a turnover of Rs 20-300 crore were the worst hit, with business losses at 73 percent, YoY. Businesses with a turnover of over Rs 300 crore in West India saw degrowth of 64 per cent.