Monday, 18 October 2021

Second Covid wave hit retail market sale down to 50% in June 2021

Second Covid wave hit retail market sale down to 50% in June 2021

Retail sales continue to suffer losses in India on the back of the COVID pandemic. According to a data business survey done by the (RAI) Retailers Association of India, pan-India retail sales reduced energy and resource to 50 percent in June 2021 compared to pre-covid of June 19.

Geographically, the eastern part of India was most impacted, with retail sales down 55 percent in June 2021. Southern and Western parts of India saw a 50 percent decrease in retail.
However, the decline is still an improvement over retail sales in May 2021, down 79 percent because May saw most parts of the country were under lockdown when the second COVID-19 wave was at its peak.

The most striking category was sports goods, which saw a 66 percent decline in sales in June 2021, followed by jewelry footwear (down 61 percent and -64 down).

Most people spending most of the time at home, sales of wellness & personal care, and the beauty sector saw sales decline to 57 percent in June 2021, while clothing sales were down to 52 percent down.
Sales of electronics and consumer durables were also struck down in June and were down 46 percent. This category impacted majorly due to the closure of non-essential stores during the second wave.

The country continues to open, prices of consumer durables have seen sharp price increases in the past six months due to the rise of process price. Appliance makers hiked prices by 12 percent in the first six months of 2021 and are waiting for more hike prices by 3 to 4 percent in the current quarter on the back of commodity prices rising to 18-20 percent in the last six months of the year.
Industry officials have indicated that the price hikes could further restrict market supply.

Second Covid wave hit retail market sale down to 50 in June 2021 1getty images

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Only one category that has seen recovery is QSR (Quick Service Restaurants), which saw a steer recovery compared to May 2021. While Quick Service Restaurants sales declined 70 percent in May, it was down to 10 percent in June.

CEO, Retailers Association of India (RAI), said.

"Retail businesses continue to be tensed and are finding it difficult to bear due to limited timing of operating and weekend closures," Kumar Rajagopalan,

While most states have eased restrictions, some states like Maharashtra continue to impose stricter regulations, malls and theatres remain shut. At the same time, restaurants and non-essential stores, including apparel, appliance, beauty, and jewelry stores, have to be closed on weekends while opening only until 4:00 PM on weekdays.

Industry associations, including RAI and Federation of Hotel & Restaurant Associations of India (FHRAI), have appealed to the Maharashtra government to ease rules.
RAI appealed to the state government to allow malls and shopping centers to operate at par with standalone shops and markets. At the same time, the HRAWI wrote to the Maharashtra government to allow restaurants to use between 7:00 AM-12:30 AM on weekdays and weekends at 50 percent capacity.

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