PANAJI: Job losses, massive loss of revenue and negative consumer sentiment has pummelled Goa’s retail sector, which was just about recovering from the after effects of the first Covid-19 wave.
While industry bodies are yet to count their losses, stakeholders said that the second wave and the consequent state-wide curfew has cause a huge revenue loss for the organised and un-organised retail sector.
Now, with experts predicting a third wave, industry captains fear that it could take as long as 15-18 months for the sector to recoup and return to normalcy.
Given that the government has turned a deaf ear to entreaties for relief and support, the Goa Chamber of Commerce and Industry (GCCI) expects Goa’s retail sector will see several big brand stores and retail outlets shutting down soon.
“The priority is to restart, and if by July-end the sector can reopen and stay open, then growth will be 10% over what it was in the first wave,” said Hari Kaul, the chairman of GCCI’s retail committee.
“If there is a third wave, shops and establishments will be shut and we will have to wait for at least 15 months to recover.” The festive season begins from August and continues till December, a period which accounts for most of the sales revenue for the retail sector.
Goa’s retail sector is largely unorganised, and includes several verticals such as groceries, branded apparel, sporting goods, pharmacies, formal and festive clothing, electronics and home appliances, furniture and luxury goods.
Grocery stores have been able to weather the storm and even post some growth during the pandemic, particularly those that pushed digital payments and home deliveries.
The impact has been the most on luxury goods, as discretionary spending on high-value watches, shoes, bags and clothing has dropped.
The Reserve Bank of India’s consumer confidence survey results released in May showed that consumer sentiment has hit an all-time low as consumers remained pessimistic about the economy and the employment scenario.
“Undoubtedly, the damage is huge for the retail sector,” said Manoj Caculo, GCCI president and chairman of the Caculo Group.
“On one hand, purchasing power of the public has gone down and people’s earnings have gone down.
On the other hand, fixed costs are very high.
Rent, property tax, sanitation fees, salaries, minimum electricity charges, and other fees have to be paid,” said Caculo.
GCCI had approached the government as well as the Corporation of the City of Panaji seeking waiver of taxes for the retail sector.
The government has yet to respond to the appeal.
“What will happen is that a lot of businesses will close because of the government’s attitude, especially in the retail sector, restaurants and non-essential goods segment,” said Caculo.
For now, retailers are focusing on getting their staff vaccinated.
They hope to analyse their losses in the coming month.
Goa retail may take 15-18 months to recover if third wave hits: Industry
