Sales at the festivals will drop 25 percent

Mumbai, Ta. 23 September 2020, Wednesday

According to a survey, most retailers are worried that the festive season sales will fall by 5 per cent this year. The impact of coronavirus will also be felt on festival celebrations. According to a survey conducted by a private firm, 51 per cent of retailers have concerns about inventory and wages. According to an online survey, 40 per cent of respondents expect the holiday season to be 4 per cent lower.

Generally, the share of sales during the festive season in the total annual sales of retail enterprises is very large. The biggest hit in the festive season sales is being seen in the apparel segments. While 4% of non-apparel retailers expect no significant difference in trade.

Due to the economic effects of Kovid-12, the market sentiment is looking negative. Large retailers are either canceling their orders or postponing them due to low demand during the festive season.

The decline in retail sales will hit the entire supply chain of this segment. Manufacturers, vendors and allied professionals will also be affected, the report said.

Most retailers are also worried about a shortage of working capital due to low sales. Eighty per cent of the participants said they would be forced to invest extra capital.