Even before the covid-19 crisis loomed, Indian retailers were having a tough time attracting consumers to spend more, due to the demand slump.
The 21-day lockdown worsens things. Note that before the current restrictions were imposed, some states had already asked shopping malls to close to curb the spread of the coronavirus.
This means footfalls were already under immense pressure. Of course, not all retailers will be hurt equally. In the near term, discretionary products’ demand would be hit the most. “We expect apparel players to moderate launches in this season and focus on reducing inventory obsolescence risk," said an IIFL Securities Ltd report on 25 March.