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  • Indian retail sales plummet, but RAI points to early signs of recovery

    Indian retail sales plummet, but RAI points to early signs of recovery

    Indian retail sales figures reflect signs of recovery in the nation’s economy, even as the overall number shows a massive drop against last year due to the impact of the coronavirus pandemic.

    The Retailers Association of India (RAI), in the fifth edition of its fortnightly business survey, reported a 63-per-cent year-on-year decline in retail sales during July. The massive decrease compares favorably with that recorded for June (67 percent) and April (more than 80 percent).

    The trend towards recovery was most pronounced in the food & grocery and consumer durables product categories, but not apparent in the apparel, sports goods, and beauty & wellness sectors.

    The statistics signal challenges still facing retailers despite the easing of India’s lockdown last month.

    “With Unlock 3.0 now being rolled out across the country, there is a possibility of significant sales recovery for retail businesses,” said RAI CEO Kumar Rajagopalan. “However, localized lockdowns, weekend curfews, and not allowing formats like food courts and cinema halls to reopen are creating roadblocks on the path to revival.

    “In places where 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.”

  • Indian retailers in mall revolting

    Indian retailers in mall revolting

    Indian retailers with stores in shopping malls are threatening to close shop if landlords do not meet demands for waivers and new rental agreements.

    Retailers representing 350 brands are seeking relief from tough rental commitments in the likely face of 12 months of low business driven by the Covid-19 crisis, proposing new arrangements such as revenue-sharing models. The brands have sent an ultimatum to malls including DLF, Ambience, Nexus, Pacific, Phoenix Group, Oberoi, and Mantri following the failure of some retailers to revise rental agreements.

    “We cannot survive without collaboration,” said Future Retail MD Rakesh Biyani in a Times of India report. “If not, there will be further job losses in the sector.”

    Of all Indian retailers, those that could be hardest hit by continuing patterns of buying this year are likely to be apparel and fashion.

    “Retailers and brands have to additionally deal with massive accumulation of inventories, unprecedented disruption in manufacturing and supply chain, and the huge shift of customers to e-commerce, among other things,” read the retailers’ ultimatum.

    Indian mall footfall is expected by some industry observers to continue to be affected by the Covid-19 pandemic well after the outbreak resolves, with consumer behavior potentially permanently gravitating towards online shopping.

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