Retailers estimate 64 percent de-growth in their business in the first half of July 2020 as compared to the same period last year as Indian retail industry continues to face hurdles at state and local levels making recovery all the more distant, RAI said on Wednesday.
According to the fourth edition of business survey conducted by Retailers Association of India (RAI), a few categories such as food and grocery and consumer durables have started showing some signs of improvement with overall de-growth now at 45 percent and 30 percent, respectively, compared to the same period last year, PTI reported.
According to a PTI report: Within the consumer durables category, large-sized retailers (over Rs 300 crore sales) indicated de-growth of 21 percent, whereas within food and grocery, small and medium-sized retailers (less than Rs 300 crore sales) reported de-growth of 35 percent, it added.
In terms of categories, apparel and clothing declined 74 percent, footwear was down 74 percent, jewellery, watches and personal accessories were down 78 percent, while furniture and furnishing witnessed a drop of 63 percent.
Similarly, the RAI survey said sports goods sales dropped 68 percent, beauty, wellness and personal care decreased by 71 percent, and quick service restaurants declined by 73 percent, it added.
Regionwise, RAI said all regions are equally beaten for sales growth with east at 62 percent decline, while west dropped 69 percent, north declined 68 per cent and south also saw a dip of 58 percent in the first half of July 2020 as compared to the same period last year, RAI added.
“It has been a grim start to the second quarter of FY21 with retailers facing huge operational setbacks due to ad-hoc local lockdowns creating confusion and leading to supply chain and staffing issues,” Kumar Rajagopalan, CEO, RAI was quoted by PTI as saying.
Supply chain and operations need to smoothen up to ensure the upcoming festive season brings back the much-needed impetus to sales recovery, he added.