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Local lockdowns disrupt recovery for retailers: RAI survey

Local lockdowns disrupt recovery for retailers: RAI survey

Local lockdowns disrupt recovery for retailers: RAI survey
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By Priya Sheth  Aug 10, 2020 8:11:54 PM IST (Published)

Operational challenges faced by retailers due to localised lockdowns seem to have hampered business in the month of July. These roadblocks come at a time when the industry was just marginally recovering from the loss of business in the last 3-4 months.

Operational challenges faced by retailers due to localised lockdowns seem to have hampered business in the month of July. These roadblocks come at a time when the industry was just marginally recovering from the loss of business in the last 3-4 months.

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A survey by the Retailers Association of India (RAI) indicates that signs of marginal recovery were observed in the month of July. After witnessing losses of more than 80 percent in the month of April, these losses have narrowed to 63 percent in July.
Despite these localised lockdowns, categories like food & grocery and consumer durables showed continued recovery. Categories like sports goods, beauty and wellness as well as apparel continued to face stress in the second half of July.
“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. 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,” said Kumar Rajagopalan, CEO, Retailers Association of India.
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 percent.
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