Covid-19 outbreak: Pain may not be limited to lockdown, say retailers

Change in consumer behaviour and higher fixed costs are major concerns, leading analysts to cut FY21 earnings estimate by 15-40 per cent

The Centre has permitted some industrial activity to begin from April 20, but the pain for retailers will last beyond the extended lockdown, with malls/stores closed till May 3.

An expected change in consumer behaviour is also likely to weigh on prospects for a few more quarters. Given these concerns, analysts have cut their FY21 estimates for retailers by 15-45 per cent.

Such concerns have started reflecting in share prices of retailers like Titan, Trent, Aditya Birla Fashion & Retail (ABFRL), V-Mart, Bata, and Page Industries, which have been underperforming on the Nifty India Consumption index, of late.

While stocks of retailers have