Indian Economy News

Retail sector may recover nearly 80% of pre-Covid sales in 2020, says RedSeer

  • IBEF
  • October 9, 2020

According to the Ground Zero Series findings of the consulting firm RedSeer, the retail sector is expected to recover almost 80% of pre-Covid revenues amounting to $780 billion by the end of the calendar year.

The revival will be driven by the group of essentials / grocery that accounts for 65% of the sectoral share.

Mr Mrigank Gutgutia, director at RedSeer, told FE, “The essentials category, largely driven by the kiranas, is already operating at pre-Covid levels”.

During the pandemic-induced lockdown, India's expansive network of 12 million kirana stores kept the supply of essentials to households intact even as online companies and organised players struggled due to operational restrictions in the initial days. To deepen their customer reach, businesses such as JioMart are tapping into kiranas.

During the pandemic-induced lockdown, India's vast network of 12 million kirana stores kept the supply of necessities to households intact even as online companies and organised players struggled due to operational restrictions in the initial days. To deepen their customer reach, businesses such as JioMart are tapping into kiranas.

Mr Gutgutia stated that the non-essential segment has picked up and recovery should get a leg-up as more shops begin operations. It is estimated that the segment will close the year with around 60-70% of last year's sales.

For the better part of the year, retailers are banking on the festive season to stimulate consumption of non-essentials that have otherwise stayed sluggish.

The month-long cycle starts with Navaratri, which is scheduled to begin this year on October 17, and ends with Diwali.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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