People happy with govt's Covid-19 pandemic battle, but retail lags

Despite a faltering economy and subdued business activities, households seem satisfied with the central and state governments’ efforts in handling the Covid-19 crises, findings from a slew of recent surveys show.

The Retailers Business Survey, conducted in July by the Retailers Association of India (RAI), shows the fourth-largest global market is still seeing 63 per cent contraction in offtake, compared to pre-Covid levels. While the extent of losses decreased steadily since April, all major sectors like furnishing, jewellery, watches, apparel, footwear, and personal care were down by over 65 percent.

Overall, the western parts of the country suffered the most, with business down 67 per cent there, followed by the North (down 65 per cent), East (63 per cent), and South (57 per cent).

Among sectors, essentials like the food and grocery (down 46 per cent) and consumer durables (down 31 per cent) fared better. Small and medium businesses (annual revenue up to Rs 300 crore) suffered more, seeing 63 percent contraction in July.

Kumar Rajagopalan, chief executive officer of RAI, pins the blame for the poor recovery in the second phase of unlocking on ad-hoc local lockdowns and weekend curfews. “In places where the local authorities have been supportive, there is confidence in the minds of consumers. If the retail industry continues to be under pressure, it will have a serious ripple effect on other sectors such as manufacturing and entertainment, among others, said Rajagopalan.

According to B Thiagarajan, managing director of Blue Star, local lockdowns have added to the woes of businesses already suffering because of poor consumer sentiment.

Major retail hubs like Delhi, Mumbai, Chennai, and Kolkata are still not fully functional. Recovery in these markets will, thus, take longer, Anil Rai Gupta, CMD of Havells India, said recently. Executives at global consumer good majors endorse this view. 

However, a survey by Gaon Connection along with the Lokniti-CSDS found that 74 per cent of rural households were satisfied with the steps taken by the Centre to curb the contagion’s spread, and about 78 per cent said they were satisfied with their respective state governments’ efforts.

Conducted between May end and mid-July in over 25,300 villagers across 179 districts in 20 states and three Union Territories, it shows 71 per cent of the rural population holding ration cards received rice and wheat during the lockdown from states.

The survey also highlights the sufferings of the rural populace. About 32 per cent faced extreme difficulty in accessing food during the lockdown and 35 per cent of households starved for some days. While 71 per cent reported a drop in monthly income, over 60 per cent skilled and manual labourers faced total loss of work.