BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
The retail sector’s nascent recovery is hit by the resurgence of Covid-19 infections. Customer footfalls continue to decline due to lockdown-like curbs to control the spread of the virus.
Given the severe strain on business and the expiry of lease agreements, retailers are seeking rental concessions again; while they could secure rental waivers/discounts last year, landlords are hesitant to extend concessions this time. As rent is a major operating expense, failure to renegotiate rentals will increase the problems of retailers multifold.
Within our coverage, VMART pays the lowest rent (~5% of sales) while ABFRL pays the highest (~14% of sales). Hence, VMART will be less impacted than other players.
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