Second COVID-19 leads to reduction in business for Indian retailers

The second COVID-19 wave is leading to a reduction in business for many retailers, restaurant owners and mall developers in India. Consumer spending has taken a backseat and this scenario is likely to continue till things settle down in some time, says Sundeep Chugh, Managing Director and CEO, Benetton India. E-commerce sales have also been impacted this time, adds Chugh. He expects business to pick up only in the third quarter of the calendar year.

Delhi is observing a curfew and has forced malls to remain shut till April-end. Maharshtra has imposed strict curbs, allowing only essential services. Madhya Pradesh said Indore, Bhopal, and Ujjain will impose curfew till April 26. Karnataka imposed a night curfew across cities. Across India, the mood is grim. Meanwhile, CAIT has appealed for an immediate 15-day lockdown in Delhi.

This has impacted business badly with footfalls falling 80 per cent across India while sales falling by 60 per cent. Also, this time there is no pent up demand as last time, says the CEO of a fashion apparel retailer.

Shopping Centres Association of India says, footfalls in malls have dropped by 75 per cent due to local curbs. The uncertainty of the situation has sent many consumers into a savings mode, adds Nilesh Gupta, Director, Vijay Sales.