FASHION RETAILERS HOPEFUL OF STRUCTURED END TO LOCKDOWN 2.0, GOVERNMENT AID

With major Indian cities, including India’s capital Delhi and financial capital Mumbai, being designated coronavirus ‘red zones’ by the Government, the impact of COVID-19 on retailers is far from easing out. Though the retail stores were shut in a single, they are definitely not going to start in one day. Although fashion retailers are not too hopeful that businesses will reopen in the first week of May, they are anticipating a structured roll-out...

According to the Retailer’s Association of India (RAI), the Indian Retail Industry has more than 15 million traditional and modern retailers. Retail employs ~40 to 50 million people directly of which modern trade employs more than 6 million Indians, equalling approximately 12 percent of the total retail consumption of the country.

Retail contributes around 40 percent to India’s consumption and ~10 percent to India’s GDP.

The lockdown implemented by the Government to prevent the spread of COVID-19 in the country has greatly affected retail business. Most stores, except stores selling essential food and grocery, have been shut across the country. Stores selling non-essential goods such as garments, electronics, mobile phones, furniture, hardware, etc., have been shuttered by the government until further notice.

Says Vineet Gautam, “We run businesses across the globe. In China alone, we have had to shut 7,000 stores. Fashion has relatively more challenges because the products start to age very quickly. Brands around fast-fashion, like ours, are continuously seeing products ageing in stores and warehouses.”

A survey by RAI highlights that:

• More than 95 percent of non-food retailers have their shops closed in the lockdown and are looking at practically no revenues till the lockdown is in place.