Retail Trade To Look Up Only In April

Despite unlockdown relaxations and the government’s decision to keep retail shops open during the lockdown period, the unorganized retail sector is staring at a staggering loss of Rs 19 lakh crore. What more, the sector feels it can see the light at the end of the tunnel only after six to eight months. This only means that the unorganized retail could smile only after April 2021.

Low customer footfalls, aversion to spending on non-essential items and cash resource crunch due to the Covid crisis has hit the retail sector hard. During the lockdown period, the unorganized retail sector had lost Rs 5 crore and Rs 4.5 crore respectively in April and May. Even after the beginning of the unlockdown process, the sector suffered a loss of Rs 4 crore. Even in July and August, the loss is pegged at Rs 3 crore and Rs 2.5 crore.

This only shows that the buyers are interested only in bare essentials due to the financial crunch caused by the Covid crisis. Even the organized sector like the supermarkets, malls and retail chains are at the losing end. They too have incurred losses to a tune of Rs 1.5 crore. Many say that the supplies brought in November-December are still to be sold. So, there is no question of ordering new stocks.

Trade experts say the situation could come to a normal only in the month of April.