V-Mart Retail expects Covid second wave disruptions to hit first-quarter business
Value fashion retailer V-Mart Retail expects its business to be hit by 45 percent in the first quarter of the current financial year, amid the disruptions caused due to the second wave of the Covid-19.
Currently, around 25 percent of the company’s stores are non-operational due to the lockdown imposed in several parts of India.
“We have almost 25 percent of the stores which are non-operational right now which falls into the lockdown zone. We still have not created scenarios, but we feel that in this quarter we will lose at least 40-45 percent of our business. Next quarter we expect things to get better, but overall in the year I fear that we may lose around 10-15 percent of business if this continues,” Lalit Agarwal, chairman and managing director of V-Mart, told CNBC-TV18.
“We are sitting on inventory. March number was looking good and every retailer wanted to stock up at that moment of time. But as of now we are seeing lower footfalls, sales and don’t require so much inventory. This was a very important month for retailers and this quarter would have been a great quarter if this would not have happened,” he said.
V-Mart Retail currently has around 274 stores across India with a strong presence in tier 2, 3 cities. It plans to open around 55 stores in the current financial year.
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