The retail industry might have to brace itself for a sustained downturn with four out of five consumers looking at reducing shopping expenditure in the coming months, according to a survey by Retailers Association of India (RAI).
The survey, conducted among over 4,000 respondents, found that only 33% respondents are excited to shop post lockdown. “Consumers in the survey exhibited symptoms of caution and conservatism as they were asked to evaluate if, how, when and where they would like to shop once the lockdown lifts,” the industry body said.
While 62% respondents said they were inclined to visit stores within the first three months post lockdown, the majority 78% said their shopping expenditure would decrease. “Only 6% said they will increase their spending. This would mean a slower recovery for the retail sector, which has seen zero revenue and sustained losses over the last few months,” RAI said.
Kumar Rajagopalan, CEO, RAI, said, “With most consumers demonstrating hesitation to resume shopping in the coming months, the retail sector needs the support of all stakeholders to revive sentiment. Despite a strained quarter, the sector will have to make investments in implementing the necessary safeguards to win back consumer confidence.”
Further, 75% respondents said regular sanitisation of stores was their most preferred measure to feel safe and secure while shopping, about 57% said they would prefer minimal staff interaction and 30% indicated their preference towards virtual trial rooms.
Asked to prioritise their shopping lists, food and grocery, and apparel and clothing continued to be on the top consumer wish lists with 52% respondents each.
“As consumers were compelled to adapt to their restricted lifestyles, it is not surprising that Consumer Durables & Electronics; Beauty, Wellness & Personal Care and Footwear feature in the top-5. However, consumers expressed low interest in spending on restaurants, travel, and leisure, as Furniture and Jewellery, Watches & Personal Accessories were least prioritised,” the survey said.