Retailers risk to lose about 50-60 percent of turnover, and it’ll take around three-six months for revival.
“If somebody does a Rs 500 crore of turnover, the loss of sales is anticipated to be within the range of 50-60 percent, which may well be around Rs 250-300 crore.
This might be that deep,” said Kumar Rajagopalan, Chief officer – Retailers Association of India (RAI).
The RAI represents almost 500,000 small and medium shop keepers in India.
He feels, even after the lockdown most of the retailers might not be ready to do enough business a minimum of for the subsequent three-six months.
His expectation is, at the tip of the year (FY21), most of the retailers are ready to do about 60 percent of their business,
Despite the loss of sales, retailers will still need to still pay salaries, rent and supplier payments which generally are within the range of about 70-80 percent of the conventional turnover.
Rajagopalan sees a call footfalls for the subsequent three months. retailers are having a large number of stocks.
Ther value of these stocks is at their bottom. Retailers must ready to liquidate these stocks. otherwise, it will be a big burden on them.
SOP for Retailers from the govt
To suffice the concerns of the retail sectors, RAI has submitted representations to the Prime Minister’s Office, Department for Promotion of Industry & Internal Trade the Commerce Ministry, and also the Finance Ministry.
To assist the retail industry address the detrimental effects on business within the wake of coronavirus pandemic.
RAI has also written to the Federal Reserve Bank of India (RBI), the bank of India (SBI). He also wrote to the chief ministers of all the states urgently requesting an instantaneous economic stimulus to make sure continuity of retail businesses and consumption in India.
“Rajagopalan is hopeful to see some package from the government.
He is hopeful that the government will surely do something for small retailers, such as salaries, rent and suppliers’ payments.
He is hopeful that the Indian government will justify these retailers and some bailout packagers will be announced soon.
It is in line with Global market and sentiments.
Till date The Indian Government has not declared any incentives.