Noida: Losses double as people buying less this year, say traders

NOIDA: Traders have been hit worse during the second wave than they were in the first.
The Confederation of Indian Traders Association’s (CAIT) Gautam Budh Nagar chapter has informed the state government that the gross revenue loss of traders in the district from March to June 2021 is estimated to be around Rs 10,000 crore, compared with approximately Rs 5,000 crore during the same period in 2020.
The reason for this doubling of revenue loss, according to the traders’ body, is not just the lockdown, but pockets getting smaller because of job losses and salary cuts and an online shift in buying patterns because of the pandemic.
“We ran an estimate based on reported data from traders across the district for both years and our findings showed that the losses this year have doubled compared to last year. This data includes both retailers and wholesalers,” said Sushil Jain, president of Sector 18 Markets Association and Convenor, CAIT (Gautam Budh Nagar.
He added, “The reason primarily is that last year, there was a problem in direct delivery because of prolonged lockdown, but people were still somehow making purchases through the home delivery route. This year, most purchases have shifted online and traditional retail and wholesale has suffered because people have absolutely stopped spending in some areas.”
Noida and Greater Noida together have over 10,000 retailers and wholesalers. The district has 200 markets with hubs in Sector 18 and Atta. The pre-pandemic annual turnover for the Gautam Budh Nagar traders’ market was around Rs 15,000 crore.
“A fall in consumption has led to the market crashing for businesses like shoes, apparels and accessories that have become low priority for people. Many have started shifting their business models. Most people are spending on essentials only. So, the market is currently going through a major correction in consumer pattern,” Jain said.
Rajesh Sharma, who has a mobile shop in Sector 18, said, “Apart from a change in consumer pattern, many people have also seen a rise in medical expenses, which has deflected spending. We need to have a support system to help traders through this period. Some fixed expenses can be reduced till losses are covered.”