More job cuts loom in malls and stores

Malls and shopping centres across the country are bracing for another round of job cuts due to frequent closures amidst the aggressive second wave of Covid-19 and subsequent lockdowns announced by states.Most of the employees working in this sector are usually migrants from other states.“Nearly 80% of employees working at retail stores and restaurants belong to the economically weaker section and their livelihoods will be impacted the most,” said Mukesh Kumar, chairman, Shopping Centres Association of India (SCAI).According to SCAI, the shopping centre industry supports nearly 12 million livelihoods directly and indirectly, which are associated with malls, retail, and manufacturing retail.82416723“During the last lockdown, the industry saw 25-30% of jobs getting impacted. However, by mid of March 2021, nearly 70-75% of employees had re-joined,” said Kumar.In the midst of the second wave of Covid-19 infections, developers of malls and shopping centres have started registering revenue losses of over 50% due to a sharp drop in footfalls courtesy the weekend curfews, local restrictions and subsequent closure of malls across major cities.“It is a difficult situation and we have not received any support from the government yet. In Maharashtra alone, there is a revenue loss of ₹3,000 crore since the closure,” said Kumar. “I foresee employees not getting salaries too.”Since the last quarter of 2020, malls and shopping centres had started witnessing a gradual recovery in footfalls and consumption after a phased reopening across states.However, the second wave of Covid-19 followed by lockdowns and related restrictions have impacted the recovery.According to SCAI, malls across India had recovered close to 90% of their business and 75% of footfalls till mid week of March. On an average during pre-Covid days, the industry was clocking ₹15,000 crore revenue per month. “We have urged the government to support the sector with financial waivers and allow malls to operate once they reopen other markets,” said Kumar.

from Economic Times https://ift.tt/3eVIFVB