Latest News | Localised Lockdowns Hampering Business Recovery Potential: RAI
Get latest articles and stories on Latest News at LatestLY. The Retailers Association of India (RAI) on Monday said signs of marginal recovery were observed in July as compared to June in its fortnightly business survey but local lockdowns are hampering recovery potential.
New Delhi, Aug 10 (PTI) The Retailers Association of India (RAI) on Monday said signs of marginal recovery were observed in July as compared to June in its fortnightly business survey but local lockdowns are hampering recovery potential.
In July this year there was 63 per cent decline in business year-on-year. In June the decline was 67 per cent, while in April during the peak of lockdown it was 80 per cent delcine, RAI said in a statement.
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The second half of July 2020 showed continued recovery for a few categories such as food and grocery and consumer durables. However, categories such as apparel and clothing, sports goods, and beauty and wellness have not yet recovered, it added.
During the July 16-31 period, RAI said sales continued to witness degrowth across regions and company sizes with businesses having a turnover of Rs 20-300 crore were the worst affected in eastern India at 73 per cent delcine from last year.
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Those having a turnover of above Rs 300 crore are most impacted in western India at 64 per cent decline. However, businesses up to Rs 20 crore turnover are showing better signs in northern India at only 35 per cent decline, it said.
Commenting on the development, RAI CEO Kumar Rajagopalan 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, he added.
"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," Rajagopalan said.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)