Extreme loss in retail industry leads to mass job loss

job loss in retail industry

Retail industry in India opened in June 8th, but it still seems to be a bad idea! Because there were seldom people around shops. As sales continue to slide and the crisis worsens, the retail industry is witnessing layoffs.

The latest layoff was in Shoppers Stop of over 1100 employees “With the declining business, layoffs are unfortunately inevitable. With a limitation on adding new stores In this situation, the size of our business to adjust our cost base in such times”, a spokesperson from the firm said Economic Times.

Earlier, Raymond sacked hundreds of employees because of increased debt and rising pressure on the business due to Coronavirus. Future Group had fired many employees in January itself.

Job losses have been much more globally. Rahul Mehta, President of Clothing Manufacturers Association of India said, “Over 80% of the garment industry comprises MSMEs which don’t have the resources to pay salaries to their employees.”

During 60 days of national lockdown, the domestic trade has lost a business of about Rs 9 lakh crore causing revenue loss of around Rs 1.5 lakh crore to both the central and state government on account of GST said Praveen Khandelwal, Secretary General, Confederation of All India Traders.