PremiumMUMBAI: Retailers Association of India (RAI) expects a significant recovery in sales in the upcoming festival season, provided restrictions on modern retail are relaxed across the country.
"There is a possibility of significant sales recovery for retail businesses as the festive season approaches, provided restrictions on modern retail are relaxed across the country allowing smooth operations and return to normalcy," said Kumar Rajagopalan, CEO, RAI.
RAI released the 18th edition of the Retail Business Survey which indicates that retail sales in July were at 72% of pre-pandemic--July 2019--levels compared with 50% in June.
Retail businesses in southern India have indicated a very sharp comeback in July, with sales at 82% of the pre-pandemic levels as against 50% in June.
Western India, however, is yet to see much improvement and indicated July sales at 57% of pre-pandemic levels against 50% in June. This is primarily because of prolonged curbs in Maharashtra which disrupted smooth functioning of modern retail in the state.
In categories, Quick Service Restaurants (QSR) recovered the best in July, with sales at 97% of pre-pandemic levels. However, the beauty & wellness category, which includes salons, is still at 50% of pre-pandemic sales, while apparel was at 63% sales of pre-pandemic levels in July.
Retail is the fastest growing sector in terms of employment generation and is second only to agriculture in terms of the number of people it directly employs, besides creating indirect employment opportunities. Opening up of retail will give businesses a chance at recovery, saving livelihoods of millions who are dependent on the ecosystem.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!