Active Stocks
Mon Apr 15 2024 15:59:36
  1. Tata Steel share price
  2. 160.90 -1.59%
  1. ITC share price
  2. 425.90 -0.98%
  1. State Bank Of India share price
  2. 757.75 -1.17%
  1. ICICI Bank share price
  2. 1,078.80 -2.30%
  1. NTPC share price
  2. 361.35 -0.08%
Business News/ News / India/  Shoppers are holding back despite economy reopening
BackBack

Shoppers are holding back despite economy reopening

The government allowed a phased lifting of lockdown restrictions from Monday, allowing shopping malls and restaurants to reopen in areas where coronavirus infections are under control

People wearing masks walk inside a shopping mall in New Delhi (Reuters)Premium
People wearing masks walk inside a shopping mall in New Delhi (Reuters)

Businesses in India from car dealers to clothing retail chains are ready for customers as the economy reopens, but shoppers are holding back.

“While the supply situation seems to be nearly normal, so far, purchases are need-based," analysts at Mumbai-based Anand Rathi Shares and Stock Brokers Ltd. wrote in a note to clients, after speaking to more than 200 distributors, dealers and retailers across the nation.

The government allowed a phased lifting of lockdown restrictions from Monday, allowing shopping malls, restaurants and places of worship to reopen in areas where coronavirus infections are under control. While consumption, which accounts for 60% of the economy, has been the driver of growth during previous stress periods, a central bank survey showed consumers were no longer confident.

Footfalls in stores selling non-essential items were down to 40%-50% of normal, according to the report. Durables saw better-than-expected sales in May due to factors such as work and schooling from home, pent-up demand, and summer heat, but that demand fizzled out in early June, Anand Rathi said.

Automobile factories and dealerships are facing a grim situation, and many dealerships may close down and due to low footfalls and other financial issues, the analysts wrote. “A revival of private spending is the only hope for an economic turnaround," they said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 Jun 2020, 01:25 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App