New Delhi: Stringent state-wide lockdowns in May have significantly dented the country’s retail businesses that dropped 79% in the month compared with pre-covid levels or May 2019, according to estimates by the Retailers’ Association of India (RAI).
All categories, including food and grocery, quick service restaurants, consumer electronics, footwear, apparel and clothing reported a drop in business with beauty and wellness retailers clocking the sharpest decline in May. RAI surveyed 76 large and small retailers pan-India.
“With sales down 34% in May 2021 (y-o-y), categories such as food and grocery fared better than categories like footwear down 86%, beauty, wellness and personal care that was down 87% and sports goods (down 80%) as compared to pre-covid sales levels (May 2019),” RAI said in its 16th edition of the Retail Business Survey. RAI compared sales figures to those of May'19, as India was still under restrictions in May'20.
Retail sales were down significantly across all regions as the second wave forced states to place temporary restrictions on non-essential retail. Movement was curbed too, as covid cases surged and consumers, fearing the virus, spent more time indoors. Malls and markets were largely shut, with stores dealing in only essential products and services being operational.
Retail sales in southern India were down 73% in May 2021 as compared to May 2019, the eastern region reported a 75% dip in sales; while retailers in west and north India reported an 83% decline in sales in May 2021 as compared to May 2019.
However, businesses are now resuming as states ease restrictions allowing malls, non-essential shops and markets to open up.
Retailers are looking forward to some improvement in June with gradual unlocking, said Kumar Rajagopalan, CEO, Retailers Association of India.
However, the retail industry needs the collective support of various government bodies to tide over the present situation, he added.
"Retail businesses continue to face financial pressures on various fronts such as salaries, rentals, electricity charges and various taxes and license fees among others due to the pandemic-induced restrictions. Easing the burden will require collaborative efforts by various stakeholders," RAI said in its statement.
