Retail sales shows continuous signs of recovery after April slump
By Retail4Growth Team | August 11, 2020
The second half of July 2020 (July 16 to 31, 2020) shows continued recovery for a few categories such as Food & Grocery (- 46% y-o-y) and Consumer Durables (- 31% y-o-y). However, categories such as Apparel & Clothing (-69% y-o-y), Sports Goods (-69% y-o-y), and Beauty & Wellness (-65% y-o-y) have also not yet recovered, according to RAI survey
The 5th edition of the fortnightly business survey conductedby the Retailers Association of India (RAI) indicates signs of marginal recovery observed in the month of July 2020 (-63% y-o-y) as compared to June 2020 (-67 y-o-y) after witnessing more than - 80% losses in April 2020 (y-o-y).
The second half of July 2020 (July 16 to 31, 2020) shows continued recovery for a few categories such as Food & Grocery (- 46% y-o-y) and Consumer Durables (- 31% y-o-y). However, categories such as Apparel & Clothing (-69% y-o-y), Sports Goods (-69% y-o-y), and Beauty & Wellness (-65% y-o-y) have also not yet recovered.
In the second half of July, sales continue to witness degrowth across regions and company sizes with businesses having a turnover of Rs 20 - Rs300 crore is the worst affected in East India at -73% (y-o-y). Those having a turnover of above Rs300 crore are most impacted in West India at -64% (y-o-y). However, businesses up to Rs 20 crore turnover are showing better signs in Northern India at -35% (y-o-y).
The figures indicate the challenges facing retailers who continued to struggle with operational issues at local levels despite Unlock 2.0 rolled out across the country in the month of July.
Kumar Rajagopalan, CEO, Retailers Association of India, said, “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.”
Voicing the concerns of the retailers, the Retailers Association of India (RAI), has submitted representations to various State & Local Authorities that put forth the asks retailers have to get their businesses on the recovery track.