COVID-19 driven lockdowns and curfews affecting business: RAI

Multiple restrictions, including weekend lockdowns and night curfews, imposed in cities and states, together with random COVID-19 testing is affecting retailers, says the Retailers Association of India (RAI).

The association, in an official statement, highlighted the need for a coordinated effort at handling the second wave of the pandemic. RAI argued that large, organized stores and malls are ensuring hygiene protocols.

Kumar Rajagopalan, chief executive officer, RAI, said the association has been highlighting the fact that formal retail spaces, especially shopping centres, are controlled spaces and have SOPs in place. “They have got the ability to adhere to hygiene standards and can definitely ensure social distancing, compared with local markets,” he said. “The government could also consider these places to be used to vaccinate citizens and speed up the inoculation drive.”

Rajagopalan pointed out that extemporized restrictions are creating setbacks for retailers as the already stressed retail businesses are getting further interrupted and in turn dampening consumer sentiment. RAI said any strain on the retail industry impacts the entire value chain, which involves manufacturing, entertainment, artisans and other micro-enterprises, leading to layoffs and downscaling, or even shutting down operations widely.

“Removing roadblocks at the local level will not only help retailers to plan ahead but will also help them make decisions on hiring. It will also help the exchequer in the form of taxes collected by the state governments such as GST, among others, which is important to help revive the economy,” the association said.

Moreover, the Shopping Centres Association of India, in a statement, highlighted that local restriction has impacted 50% of overall mall industry’s business. It said weekends, which contribute to 30 to 40% of the overall mall business has been wiped out and 40 to 45% of footfall has been directly hit due to early closures and the weekend shutdown. “With recent developments in Maharashtra, organized retail in the state has seen 50% reduction in footfall due to antigen testing to enter malls; over 60% of overall business has been impacted due to both antigen testing and early closure.”

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