Retail sector in India feels the heat as Covid keeps customers at home

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The over seven crore traders and retail establishments in the country are staring at uncertainty even as the country unlocked itself after the fierce second Covid 19 wave. Footfall at retail stores has come up to only about 40 per cent of pre-Covid times. Besides, traders are also saddled with inventories.</p>
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And now as experts warned of another thirds wave in the country, the trading community has been the worst impacted. “Since there is apprehension, it is not possible to the retailers to go in for further stocks as the situation is uncertain,” Praveen Khandelwal, secretary general of the Confederation of All India Traders (CAIT), the apex body of seven crore traders of India, told India Narrative.</p>
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Over 40 crore people are employed in the sector, hit by severe liquidity crunch.</p>
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For many retailers, payments have been stuck since the end of 2019. Typically payment for November-December takes place around March. “But due to the lockdown last year, many payments were held and deferred due to the losses. Just when things were starting to look up for the trading community, the second wave hit, leading to acute shortage of liquidity,” Khandelwal said, adding that the wholesale markets have been the worst affected.</p>
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The country’s traders have raised their chorus for boycotting Chinese goods since the Galwan Valley clash last year as tension between India and China escalated</p>
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“There is reluctance among consumers to purchase Made in China products and traders are keen to diversify markets and source goods from other countries such as Vietnam, Cambodia and even several eastern European nations,” Khandelwal said.</p>