New Delhi: Mall retailers are bracing for a dip in sales as the retail sector struggles to absorb a sharp slowdown in demand for goods and services in the country’s capital.
In the past two years, sales in the capital have dropped by 25.5% to an annualised Rs 3.85 lakh crore, while the annualised income of retail companies is falling by 10% to Rs 3,932 crore, according to a report from a market research firm.
In March, retail companies saw sales decline by 11.8% in the first quarter of this fiscal, compared to a decline of 12.3% the previous year.
The report said that while retail prices are still increasing in some sectors of the economy, in most cases it has been offset by a drop in sales by consumers.
It said retail prices have declined in food, fashion and beauty, while those for consumer goods have fallen.
According to a retail survey conducted by research firm M.M. Partners, the retail sales in malls across the country have plunged by more than 12% from the year-ago period.
Mall retailers are taking a hit.
On the back of demonetisation, the Indian government introduced new tax and other restrictions on buying and selling goods.
Retailers have been left to try to find new ways to survive and will be forced to adapt to the changes.