Chennai: Whereas retailers hope for a big restoration in gross sales in the course of the upcoming festive season, they’re cautious about hiring. The concern of a 3rd wave of the pandemic is making them sit with fingers crossed.
A lot of the classes, together with FMCG and shopper durables and electronics, expect the festive season gross sales to the touch pre-pandemic ranges this time.
In line with B. Thiagarajan, joint MD of Bluestar, the final festive season touched 85 per cent of the pre-pandemic gross sales and this time it might be 100 per cent.
Retail shops often rent extra fingers for in-store promotions and installations in the course of the festive season. Other than the standard white items, a couple of classes like dish-washers, fridges, microwave ovens have grown considerably, which want expert manpower for demonstrations and installations.
Nonetheless, brick-and-mortar retailer retailers aren’t hiring as many individuals as they used to in the course of the pre-pandemic occasions. “Last festive season, the hiring was just 20 per cent of 2019 and this time it could be around 40 per cent. Retailers are upbeat about sales, but are apprehensive about how a possible third wave could affect the physical store sales,” mentioned BalaSubramanian A., enterprise head (shopper and healthcare), TeamLease Providers.
In line with him, for the reason that lockdown restrictions have been lifted, clients are popping out to buy. However the uncertainty nonetheless stays. After strong gross sales in June and July because of the pent-up demand, gross sales have been gradual in August even for classes like fast-paced shopper items (FMCG).
“Hiring of temporary staff has gone up and this year’s hiring would be better than last year, but not as good as pre-pandemic years. There is no slump for the manufacturers. But retailers are cautious,” mentioned Suchita Dutta, govt director, Indian Staffing Federation.
In line with her, the change in buying behaviour too is making retailers cautious. The brand new hybrid mannequin, which mixes each on-line and offline, has turn out to be widespread even in smaller cities. Cell phones, which now account for 52 per cent of gross sales within the shopper durables and electronics class, are largely bought on-line. Remainder of the products, together with TVs, fridges, air-conditioners, computer systems and peripherals, account for 48 per cent of the gross sales.