New Delhi: Around 80,000 jobs are expected to be cut by various retailers due to the ongoing coronavirus pandemic, according to a survey by industry body Retailers Association of India (RAI).
RAI had conducted a survey of 768 retailers, who employ 3,92,963 people across India, to gauge their view on the impact of COVID-19 on their business and manpower.
“Small retailers are expecting to lay-off 30 per cent of their manpower going forward, this number falls to 12 per cent for medium (sized) retailers and five per cent for large retailers. On the whole, retailers who responded to the survey expect lay-off of about 20 per cent of their manpower,” RAI said in a statement Tuesday.
The expectation of retrenchment of 20 per cent of employees by those featured in the survey amounts to 78,592 people.
According to RAI, small retailers featured in the survey employ less than 100 persons and accounted for 65 per cent of the respondents. Medium retailers have 100–1,000 employees making up for 24 per cent of respondents, while large retailers employ over 1,000 people and accounted for 11 per cent of the respondents.
Ever since the lockdown was imposed March 25, more than 95 per cent of non-food retailers have closed their outlets and are looking at practically no revenues during the period and they expect to earn only about 40 per cent of last year’s revenue in the next six months, the survey said.
On the business outlook, 70 per cent of retailers expect business recovery to happen in more than six months, while 20 per cent expect it to take more than a year.
On expectations from the government, RAI said two out of three retailers employing substantial workforce want employee salary and rent support to manage their fixed costs and limit manpower downsizing. “Without this support the retailers are looking at around 20 per cent manpower reduction due to COVID-19,” pointed out RAI.
The industry body further said two out of five retailers want concessions and relief on GST, taxes and loans to ensure business continuity in the face of the revenue downfalls and heavy losses for 2020-21.
The retailers are requesting for additional 60 days for payment of electricity charges and waiver of minimum demand charge for the same period with one out of 10 retailers considering this as a key ask from the government to manage finances in this period of uncertainty, RAI said.
PTI