To open or not to open: Retailers divided over resuming business

Closed shops near NG Acharya Marg in Chembur

Waiting for the COVID-19-caused lockdown to lift for over 60 days, the city's retailers seem to have come to the end of their tether, with most of them accepting that the virus is here to stay and that businesses must resume functioning. However, there are some, especially in the Containment Zones and heavily affected wards, who feel that it may not be a good idea.

The state's retail business will be finished for good if shops are not reopened by Monday," said Viren Shah, president, Federation of Retail Traders Welfare Association (FRTWA), which has over 3.5 lakh shops from the state under its umbrella. "We have not paid staff in two months and haven't had business. The responsibility of the retail crash, if it happens, will lie on the Maharashtra government."

Shuttered shops in Dadar

Last week, Shah wrote to Chief Minister Uddhav Thackeray saying shopkeepers, wholesalers and offices are ready to resume business with limited staff and precautions. The letter pointed out that e-commerce players have been allowed to deliver non-essential items even in Red Zones but shops have been kept shut, with stock worth crores lying in the godowns.

"The state government is allowing e-commerce businesses - which don't pay taxes - to deliver non-essential products," Shah told mid-day. "We (retailers) pay taxes. We have already paid GST on the stock of goods but haven't been able to reclaim it as there is no business. There is cut-throat competition between retailers and e-commerce players."

Kishore S Kulkarni and Sunil Shah

Shah also acknowledged that it would not be easy for staff to come to work amid no public transport. "Most of the staff comes from Nalasopara, Bhayandar and other suburbs. Yes, travelling will be a problem with no trains and buses. But this will be looked into once we are allowed to function. We will call only one-third of the staff living nearby to work. Or shopkeepers will arrange for transport."

Shah pointed out that there is huge demand for non-essential items such as shirts, pants, undergarments, umbrellas, electronics, raincoats and indoor board games which are conventionally sold only in retail shops.

'Risky move'
Not all members of the FRTWA feel reopening is a good move. Kishore S Kulkarni, 64, president of the Chembur Merchants Association, which comprises 800-1,000 shops located near NG Acharya Marg in M West ward, said: "Our ward is one of the most affected areas. Nearby areas include Govandi and Mankhurd which have been completely sealed off. People from these affected areas may converge in Chembur. Most of our association members are not ready to open shops. Secondly, most of our staff has also left. How can a 2,000 sq ft showroom function with only a few staffers?"

Kulkarni, who has been the president for a decade, said reopening should be held off until at least monsoon is over. "Each ward has different problems. Every year, our area gets flooded during monsoon. This year, drains haven't been cleaned amid the lockdown. A unanimous decision cannot be taken to open shops across the city. Yes, our business has been affected drastically. But even if showrooms open today, those that used to earn a lakh won't even make R5,000 now. Resuming now will only lead to more overhead costs such as bills and staff salaries," Kulkarni said.

'Need of the hour'
Sunil Shah, president of the Dadar Vyapari Sangh, which comprises around 1,100 shops, said that each establishment has an around R65 lakh worth of stock. "We will have to live with COVID-19, it is the need of the hour," Sunil said. "Open shops will convey the message that everything is okay, which is important."

According to Sunil, shopkeepers have been getting calls from customers wanting to buy children's clothes, newborns' clothes, clothes for pregnant women, and undergarments. "It is wrong to allow online retailers to function and not us. Dadar was the first area to support the government and shut all the shops, we had faith in the government. We are the second-largest employment providers, what does e-commerce give to the government and the people?"

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