Avenue Supermarts to Bata India: Retailers are now hiring, but on contract

Reversing a trend of declining jobs in 2020-21 when most retailers fired staff and imposed a hiring freeze amid dwindling sales and lockdowns, they have stepped up hiring. But many have resorted to increasing employees under contract, as opposed to taking them on payroll.

Titan Company added 45 per cent more contractual employees in 2021-22 (FY22), compared to the 0.4 per cent rise seen in permanent employees during the year. Bata India, on the other hand, saw its permanent headcount come down 2.2 per cent in FY22, but saw its contractual employees increase to 4,273, from 3,729 in the previous year.

The same trend is seen in Raymond. Its contractual employee count increased 11.3 per cent in FY22, compared to a drop in its permanent employee headcount, which fell 3.6 per cent in FY22. 

However, Avenue Supermarts saw its permanent headcount increase 11.2 per cent. Its contractual headcount increased 10.6 per cent. The division of permanent versus contractual employees in Reliance Retail is not available. Its headcount went up to 3,61000 in FY22 as it added 15,0000 jobs in the previous financial year. 

“During the pandemic, around 5 million people working in retail lost their jobs. Businesses are now witnessing recovery and trying to increase headcount quickly,” says Kumar Rajagopalan, chief executive officer, Retailers Association of India.

He says 80 per cent of retailer employees hired as trainees are eventually absorbed by the system. India is no exception, he adds. It happens globally as well. There is a V-shaped recovery being witnessed, adds Rajagopalan. 

“Overall hiring activity has increased in the sector. Also, the second and third quarters are festival-driven when retailers will see 60 per cent of overall volume come in. They will have to meet rising demand. Hence, momentum has gone up,” says Rituparna Chakraborty, executive director, TeamLease — a human resource firm. 

According to a TeamLease report for the quarter, the intent to hire in retail is higher in the June-September quarter than the April-June period. 

Mall space in the country is also increasing this year, reveals a report by Anarock. This means employment in the sector will increase concurrently. New malls with nearly 10.15 million square feet (msf), which is 86 per cent more than what was created in 2021, will come up in tier I, II, and III cities this year, observes Anarock. Another 7.25 msf will follow in 2023.

In 2021, approximately 5.76 msf of retail real estate was created. The report says in 2022, 15 malls will enter the market, spread across 12 cities in the country.

Chennai will see the highest number — at four — spread over 2.55 msf. Other tier I cities with new malls include Ahmedabad, Bengaluru, Hyderabad, Mumbai, Pune, and Ghaziabad — together comprising 5.1 msf.

Tier II and III cities include Baroda, Budaun, Indore, Nagpur, and Udaipur, with an area of approximately 2.5 msf.