Recovery : F&B, consumer durables shows signs of revival but overall recovery looks distant: RAI Survey
By Retail4Growth Team | July 23, 2020
According to the survey, retail industry continues to face hurdles at the state and local levels making recovery all the more distant.
The Indian retail industry continues to face hurdles at the state and local levels making recovery all the more distant. The 4th edition of the business survey conducted by the Retailers Association of India (RAI) reflects no sign of recovery with retailers estimating 64% degrowth in the first half of July 2020 on a y-o-y comparison.
Kumar Rajagopalan, CEO, Retailers Association of India, said, “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. Supply chain & operations need to smoothen up to ensure that the upcoming festive season brings back the much-needed impetus to sales recovery.”
A few categories such as Food & Grocery and Consumer Durables have started showing some signs of improvement with overall degrowth now at 45% and 30%, respectively compared to the same period last year. Within the Consumer Durables category, large-sized retailers (>300cr sales) indicated degrowth of 21% y-o-y, whereas, within Food & Grocery, small & medium-sized retailers (
Categories such as Apparel & Clothing (-74%), Footwear (-74%), Jewellery, Watches & Personal Accessories (-78%), Furniture & Furnishing (-63%), Sports Goods (-68%) and Beauty, Wellness and Personal Care (-71%), and QSR (-73%) continue to descend rapidly even in the first half of July 2020 on a y-o-y comparison.
Region-wise findings indicated that all regions are equally beaten for sales growth with East at -62%, West at -69%, North at -68% and South at -58% in the first half of July 2020 on a y-o-y comparison.
The Indian retail industry has been at the forefront of implementing rigorous safety measures to ensure the complete safety of its employees and consumers. However, the local lockdowns and ad-hoc restrictions being imposed in UP, Maharashtra, AP and Karnataka are making a distressing impact on the retail businesses and on consumer sentiment.