Study finds de­mon­e­ti­za­tion hit whole­salers, re­tail­ers

Shoes & Accessories - - Contents -

One year after de­mon­e­ti­za­tion, about 36 per cent of whole­salers and re­tail­ers in In­dia say that note ban has had high to se­vere im­pact on their busi­nesses, as per a sur­vey con­ducted by whole­sale mar­ket­place Wydr.

The re­port said nearly 21 per cent re­spon­dents ob­served over 50 per cent re­duc­tion in Oc­to­ber 2017 sales as com­pared to same pe­riod pre­vi­ous year. Be­sides, 27 per cent said their sales had re­duced be­tween 20-50 per cent.

The find­ings are based on poll con­ducted through re­tail­ers, whole­salers and man­u­fac­tur­ers en­gaged in ap­parel, life­style and elec­tron­ics trade across the coun­try.

“A sig­nif­i­cant num­ber of busi­nesses has seen di­rect busi­ness im­pact in the form of re­duced sales fol­low­ing the de­mon­e­ti­za­tion an­nounce­ment, how­ever the over­all sen­ti­ment re­mains pos­i­tive re­gard­ing the Gov­ern­ment’s de­ci­sion,” Founder and CEO, Wydr.in, Devesh Rai said.

Men­tion may be made that on Novem­ber 8 last year, the Naren­dra Modi-led Gov­ern­ment had scrapped the then high value Rs 500 and Rs 1,000 ban­knotes.

In­ter­est­ingly, the sur­vey found that there was no de­cline in cash sales for ma­jor­ity of the busi­nesses as only 40 per cent re­spon­dents said cash sales with­out an in­voice have re­duced after de­mon­e­ti­za­tion.

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