Retail Sector - Second Wave Impact A Key Monitorable For H1 FY22: Nirmal Bang
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Nirmal Bang Report
In Q3 FY21, a higher level of retail opening up, pent up demand and festive boost enabled retail players to witness a 70-80% revenue recovery rate.
While January and February continued to witness decent demand offtake, owing to sales events and declining Covid cases, a sudden rise in the number of cases in the past few weeks has dampened the growth picture for FY22 for retail companies.
Retail companies could be looking at a slump in demand in H1 FY22 compared to earlier expectations as partial lockdowns, closure of malls and curbs on late evening movement keep consumers home-bound.
The earlier expectation that the companies would return to normal business by H1 FY22 has been dashed.
However, we believe that with the vaccination drive underway, the retail sector will be back in good shape by H2 FY22.
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