Retail business suffers from Omicron wave in India: Survey by CNBCTV18

dWeb.News Article from Daniel Webster dWeb.News

The pace of India’s retail industry growth has slowed since December last year due to new restrictions in many parts of India owing to the third pandemic. According to Kumar Rajagopalan (CEO, Retailers Association of India), the slowdown in the pace of India’s retail sector has been caused by fresh restrictions in most areas of the country.

The RAI, in its 23rd edition Retail Business Survey, revealed that retail sales in the country in December 2021 rose by 7 percent over pre-pandemic levels (December 2019) and by 26 percent year-on-year(YoY) compared to December 2020. The association represents Indian retailers and works with other stakeholders to create the best environment for India’s modern retail sector. It stated that although the overall numbers are positive, the effects of the restrictions can be seen at the category level with furniture and furnishings falling by 5% and beauty and wellness & personal care dropping 7 percent. These two segments are now back in the red, compared to the pre-pandemic period’s December 2019 sales.

New restrictions in the country have impacted shopping hours, forcing malls and stores across the country to close. In anticipation of a drop in demand, wholesale stockists are reducing their inventory and production is slowing down.

Other segments such as CDIT (26 percent growth), sports goods (14 percent growth), jewellery (9 percent growth), footwear (7 percent growth), and apparel & clothing (2 percent growth) all experienced a drop in sales, according to RAI. RAI appealed to the Centre Ministry of Home Affairs and Ministry of Health and Family Welfare to tell them to stop imposing restrictions on positive rates and to instead use hospitalisations to determine the severity of restrictions. This will reduce the negative impact on livelihoods and prevent panic from citizens and businesses.

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