Home Industry Buzz 30% modern retail stores face closure if lockdown prolongs till June

30% modern retail stores face closure if lockdown prolongs till June

30% modern retail stores face closure if lockdown prolongs till June
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If the country remains in the state of lockdown till June, 30 percent of the retail stores operating in India may have to close down, resulting in the loss of 18 lakh jobs, said Kumar Rajagopalan, CEO of Retailers Association of India
(RAI).

By the end of February, the business had dropped to as much as 20% to 25%. In the past one and a half months, it has further reduced to 15%. Stores selling essential goods that have been allowed to remain open during the
lockdown is also suffering losses as they aren’t allowed to sell other general merchandise, which would otherwise bring them higher margins.

“Overall, there has been a significant impact on apparel, jewellery, shoes, and CDIT (consumer electronics, durables, IT and telephones) retail. If the lockdown continues till June, then we will be staring at a scenario where 30%
of the retail stores have shut shop for good, leading to 18 lakh people losing their jobs”, said Rajagopalan.

RAI has written to the government of India requesting a relief package for the retail industry similar to what the governments of Singapore, United Kingdom and the United States of America have announced for retail industries in  their respective countries.

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