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According to a survey about the impact of coronavirus (covid19) on Indians between March and May 2020, retail stores consistently seemed more reliable during the survey period for consumer to able to buy essential goods.
The coronavirus pandemic represent an “ existential threat” to the entire retail sector and there will be “fundamental changes” to longer – term business model. At the best times, many retailers were struggling to gain any footing with customer but now it is even more difficult to survive
SWISS CONSUMER want to go shopping again ,but uncertainty remains. Many turned to online shopping because of COVID 19. The time it seems unlikely that high street shops face an existential threat. If Shopping in future is no longer an easy , pleasant and safe experience for consumer. When lockdowns will unwind is still unclear, but it seems certain the swiss retail sector faces a painful loss revenue.
The COVID-19 Outbreak has completely changed the face of retail in India and almost every country worldwide. Until early to mid-may, most goods, such as furniture, clothes and books, were either completely unavailable or available only online.IN survey shows that the COVID -19 crisis is likely to trigger a decline in “traditional shoppers”- that is, shoppers in brick –and-mortar stores – across all categories of goods. Almost two-third of respondent report that before the pandemic.
FOR EXAMPLE: They Preferred to purchase furniture and furnishing in shops, but only 60% say they will continue to do so after the crisis, a decrease of five percentage points .
Many Consumers delaying purchases:
The survey also shows that since the COVID -19 outbreak, SWISS consumers have purchased mainly groceries, with other consumer goods less of priority. some consumer will only purchase certain item again once the shops have responded.
The shopping experience versus health protection:
Traditionally, many people enjoy the atmosphere and shopping experience of the high street, strolling along, window shopping, tempted by the sheer range of goods and distraction in shopping malls. As mention above, initial surveys and experiences from India and another country suggest that customers are now very purposefully buying what they bought in the past but in larger quantities.
If Queueing, physical distancing and the need to wear a face mask in public spoil the shopping experience- and once online retailer get delivery time back to normal then traditional shoppers may well switch to online shopping in large number. Retailers are therefore intending to take advantage of the almost two months in which shop have been closed not only to get their shop in order, but also to creatively introduce new safety measures. both retailers and brands need to do more to bring the online and offline world together and find new ways to meet evolving customer needs fast.
Impact of COVID-19 on Indian Retailers:
Indian Retail Industry has more than 15 million retailers, both small and big, traditional and modern trade . Retail employs 40-50 million Indians directly of which Modern trade employs more than 6 million Indians equaling to almost 12% of the total Retail consumption of the country.
Following were the key highlights of the survey results:
(1) Impact of non-food retailers –Most than 95% of non –food retailers have their shops closed in the lockdown and are looking at practically no revenues till the lockdown is in place. In the next 6 months, NON-FOOD RETAILERS EXPECT TO EARN 40% as compared to last year’s revenues.
(2)Impact on food retailers- most of food retailers also sell non -essential goods in the same and /or different stores. The non –food business in the stores has come to a standstill in the lockdown leading to revenue loss.
(3) Overall business Outlook – 70% of retailers expect business recovery to happen in more than 6 months, 20% expect it to take more than a year 10% of Medium and Large Retailers expect to earn any profits till Aug’ 20, 26% of Small retailers expect to earn profits in the same time period.
(4) Manpower rationalization – Small Retailers are expecting to lay-off 30% of their manpower going forward, this number falls to 12% for Medium Retailers and 5% for Large Retailers.
All this could change Rapidly , However . Our survey shows 19% of swiss national expect to lose their job due to the COVID-19 crisis.
Author: Anushka Kumari
Editor: Kanishka Vaish, Senior Editor, LexLife India.