According to a consumer sentiment survey by Retailers Association of India (RAI) along with LitmusWorld covering 4,239 respondents, 78 per cent of them said their shopping expenditure will decline.
An overwhelming percentage of consumers plan to reduce their shopping expenditure, as only 33 per cent are excited to shop post-lockdown, according to a survey by retailers body RAI.
According to a consumer sentiment survey by Retailers Association of India (RAI) along with LitmusWorld covering 4,239 respondents, 78 per cent of them said their shopping expenditure will decline. While 41 per cent said their shopping expenditure will decrease “substantially”, 37 per cent responded that it will decrease “slightly”, 16 per cent said it will remain the same and only 6 per cent said their spending on shopping will be higher, according to the survey.
“This would mean a slower recovery for the retail sector, which has seen zero revenue and sustained losses over the last few months,” RAI said in a statement. When asked if consumers are excited to shop post-lockdown, only 33 per cent had affirmative reaction, while 37 per cent replied in the negative, the survey said, adding 30 per cent of respondents had a neutral shopping sentiment.
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In terms of willingness to go out and shop, 62 per cent of respondents said they were planning to visit stores within the first 3 months, 32 per cent in the next 3-12 months and 6 per cent said they would stay away from the stores for the next 12 months.
However, 75 per cent of respondents in Tier 2 and Tier 3 cities said they were planning to visit retail stores within the next three months.
Commenting on the findings, RAI CEO Kumar Rajagopalan said, “With most consumers demonstrating hesitation to resume shopping in the coming months, the retail sector needs the support of all stakeholders to revive sentiment”.
Retailers will need to prioritise safety and hygiene measures to reassure consumers that they will receive a safe shopping experience. Despite a strained quarter, the sector will have to make investments in implementing the necessary safeguards to win back consumer confidence, he added.
In terms of priority on the shopping list, food and grocery along with apparel and clothing topped the chart, with 52 per cent of consumers listing these items as primary.
These were followed by consumer durables/electronics with 31 per cent of respondents saying it to be important, while 25 per cent indicated beauty, wellness and personal care as priority, the survey added.
“The Indian consumer’s optimism will revive the retail economy within 3 months of the unlock phase,” LitmusWorld Head of Marketing & Partnerships Khushaal Talreja said.