Business

Lockdown Impact : Mall Owners Take A Hit With Rs 3000 Crore Loss, Urge State Governments To Lift Curbs

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As the country battles  the second wave of COVID-19 and the subsequent lockdown, the shopping malls have taken a huge in their business .  According to a news report by PTI, it is learnt that  the mall owners have incurred a loss of around Rs 3,000 crore during the ongoing second wave of the COVID-19 pandemic over the last eight weeks due to lockdowns and restrictions imposed by various states across the country.

In the wake of the second pandemic wave, around 25 per cent of the business of the retail side across categories has been lost and this is going to impact the mall owners as well, according to Shopping Centres Association of India (SCAI) Chairman Mukesh Kumar.

However, mall owners would go ahead and complete their under-construction projects as they anticipate demands for commercial and office space once the pandemic recedes, the SCAI said.

Some large retailing groups are scouting for spaces, while looking at the future, the association noted.

“Loss of the retail and malls are humongous. In terms of numbers, I can say that Rs 3,000 crore loss is for malls and around Rs 25,000 crore for retail, all categories put together,” said Kumar in a virtual media roundtable.

He further said that typically, around 12 to 15 per cent of total sales revenue for malls “happens from the retail side”.

Mall owners have urged the state governments to allow start operation with immediate effect and let the customers experience a controlled and safe shopping experience.

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