Big Bazaar expects drop in revenue due to shutdown of non-essential sections

By

Maverick Martins

Published
Mar 27, 2020

Future Retail-owned Big Bazaar expects its overall sales to drop due to poor sales of its non-essential items during the 21-day lockdown due to the Covid-19 pandemic.
 

Even though Big Bazaar has witnessed a spike in sales in its essential items, it has over 40 percent of products that come under the non-essential items.
 
As the sale of non-essential items has been prohibited, the company expects a slowdown in overall revenue during the period.

“In order to comply with the orders, the company has shut down several sections and floors, including fashion, apparel, home, and other non-essential sections. Approximately 40 percent of each Big Bazaar store comprises non-essential items. These sections have a significant share in each store, as food alone does not contribute to the entire sales,” Big Bazaar CEO, Sadashiv Nayak, told BusinessLine.
 
“The entire industry is seeing a decline. There will be a little decline in sections that are shut. Besides that, we have also seen a decline in a few stores in a few areas. We have told our team that our overall numbers (sales or revenues) are likely to be impacted,” he added.
 
Big Bazaar part of Future Retail is one of the highest contributors to the company’s overall revenue and currently has over 300 retail outlets across the country mostly in larger cities.