Retailers Association of India (RAI) has asked the government to allow the opening of establishments such as shops and malls dealing in non-essential items along with restarting of manufacturing activity in non-COVID-19 zones, stating without retail consumption, manufacturing will have little meaning.
Committing to adhere to the highest safety standards in terms of social distancing and hygiene, the association has pleaded for a gradual opening up of retail units to boost consumption and ensure job retention.
Retailers have also asked the government to provide subsidy of up to 50% for payment of the salary of employees earning up to ₹25,000, 25% additional working capital credit line to pay salaries, working capital loans of three months of sales at a very low rate of interest and a moratorium of six to nine months for repayment of loans which will help in achieving normalcy in nine to 12 months.
They said all earlier loans should get a similar moratorium and GST across the board for retail should be reduced to boost consumption and reboot the economy.
Open shops, multiplexes
“Twenty-five million people working in the sector will be impacted if shops selling non-essential goods remain closed. If retail does not open, then manufacturing will be [hit]. Malls, shops and multiplexes must open,” said B.S. Nagesh, chairman, RAI. He said RAI has come out with safety standards to be implemented across all retail units to provide safe shopping experience to customers.
Kulin Lalbhai, Executive Director, Arvind Ltd said, “The key to resetting the economy is to get cash generation going. Exports won’t be a silver bullet for India. Driving domestic consumption, safely, is going to be important. A large part of retail is based in non-essential items; we must revive that even as we continue providing for essentials.”
Rakesh Biyani, Managing Director, Future Retail said, “Strategic partnership with delivery services and market places, is going to be very important to service customers even after the lock down is lifted. Kirana stores have played a very important role during the lockdown.”
“It is going to become very difficult, to kick-start the supply cycle, unless we receive the support of the government to capitalise the businesses. Organised retail and malls will offer a safe and secure shopping environment to fight the fear of the COVID-19,” he said.
Sandeep Kataria, CEO, Bata India Ltd., said, “It is important that we open all channels of consumption, including malls. Only when consumption picks up can production happen at full speed. We need to open up modern retail so that the 4.5 million workers employed by the footwear industry can come back to work.”
Atul Ruia, Managing Director, Phoenix Malls, said malls are the safest places to shop. “The back end of the industry cannot function if the front end isn’t operating. We could implement measures in malls such as restricted operating hours, social distancing protocols; vacant seats in cinema halls; partitions between customers in restaurants; hand sanitisers and temperature checks at entrances; and masks for all retail staff.”
Stressing on the importance of opening all channels of retail, Rahul Mehta, past President CMAI said, “Manufacturing and retail cannot do without each other. Around 90 percent of apparel retail is in brick-and-mortar format; opening them is vital for the survival of the industry.”
Kumar Rajagopalan, CEO, RAI said, “ It is very important that the industry retains its employees; we have, therefore, requested the government and financial institutions to come together and provide a meaningful package for the retail industry’s survival during, and revival after, the lockdown.”
