Nearly 50% of stores closed for ops over Covid-19, says Avenue Supermarts

By: |
April 11, 2020 2:50 AM

In the first week of April, Avenue Supermarts commenced e-commerce and bulk deliveries to large housing complexes across the majority of its stores.

However, sales from these channels are “inconsequential”, the company said. However, sales from these channels are “inconsequential”, the company said.

Avenue Supermarts, which runs the D-Mart retail stores, said that nearly 50% of its stores are closed for operations and the footfalls in stores that remain operational have come down significantly.

The company continues to sell daily-use essential items such as grocery and FMCG products from all the operational stores and has stopped sale of all non-essential items like apparels and general merchandise, it said in an exchange filing on Friday.

In the first week of April, Avenue Supermarts commenced e-commerce and bulk deliveries to large housing complexes across the majority of its stores. However, sales from these channels are “inconsequential”, the company said. Also, that these initiatives are only to manage the current lockdown situation.

Retail and FMCG companies are continuously highlighting that there have been disruptions in the supply chain, impacting the business across geographies in India, due to national lockdown on the back of the Covid-19 outbreak.

Godrej Consumer Products (GCPL) on Thursday informed the exchanges that that it will report revenue decline in the high teens in its India business for the quarter ended March 31, 2020.

Godrej said that in India, demand was steady till the outbreak of coronavirus and slumped due to disruption of both back-end and front-end supply chains in the last 12 days of March. Low double-digit sales decline was seen in the performance of its distributors, implying that their stock levels are getting depleted, GCPL said.

Earlier, much like other retailers and FMCG players, Aditya Birla Fashion and Retail (ABFRL) announced that its factory operations in Karnataka, Tamil Nadu and Odisha have been stopped. The company has also closed down all its retail stores. ABFRL had said that the company’s business has been “significantly affected over the last few weeks and will continue to be materially impacted due to the current crisis”.

Future Supply Chain also said last month that it has temporary closed some of its warehouse facilities, except its food-distribution centres across the nation.

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