India’s 5 lakh malls and 24 lakh workers in showrooms may be unemployed, retail stores’ earnings drop by 90%: report
Coronavirus lockdown is under compulsion, but people are adopting online shopping. This is bound to affect the purchase of Indians in the coming days. Shoppers visiting the mall, super market and retail shop on weekends are ordering grocery items online today. According to the Retailers Association of India (RAI), about six million employees work in the modern retail sector in India. Out of this, about 40 percent i.e. 24 lakh people can lose jobs due to the coronavirus in the next 4 months. In fact, as of 31 March, most malls, super markets and other modern retail shops across the country have been closed.
Retail sector’s earnings drop by 90 percent
RAI Chief Executive Kumar Rajagopalan said that in the next 6 months, the retail sector’s earnings could decline by 90 percent. Due to this, the RAI has demanded a relief package from the government for the retail sector. Also, Rajagopalan has proposed a waiver in debt repayment and GST and other taxes for the retail sector. RAI represents around 5 lakh stores in India. This includes V-Mart, Shoppers Stop, Future Group and Avenue Supermarts, which the grocery chain D-Mart operates.
116 out of 265 retail stores closed
Future Retail Owners of Hypermarket Big Bazaar said revenue has declined due to coronavirus. 341 cases of coronavirus have been reported in India. So far, there have been seven deaths across the country. Gurugram-based fashion retailer V-Mart said the retail sector’s revenue declined by 30 per cent from March 5 to 21. As of Saturday, 116 out of 265 retail outlets across the country have been closed.
