 "job cut layoffs")
The total workforce for these retailers dropped to 429,000 in FY24 from 455,000 the previous year.
As many as 12 listed lifestyle, grocery retailers, and quick-service restaurants (QSRs) cut their workforce by around 26,000, reversing the hiring surge of the previous two financial years as they slowed down store expansion in response to declining demand, according to a report by The Economic Times.
According to their annual reports, this reduction was primarily driven by five major retailers — Reliance Industries’ retail division, Titan, Raymond, Page, and Spencers — which collectively saw their workforce shrink by 17 per cent, or 52,000 employees. This figure includes both permanent and contractual staff and accounts for attrition in the retail sector, the second largest employer after agriculture. The total workforce for these retailers dropped to 429,000 in FY24 from 455,000 the previous year.
The report quoted Kumar Rajagopalan, chief executive (CEO) of Retailers Association of India, as saying, “There is a shortage of talent and we are trying to tie up with universities so that the industry has the option to hire. Some companies might have reduced staff due to the shutting of some businesses, but companies like Shoppers Stop and Trent continue to expand and will require staff.”
Shift in consumer spending
Since Diwali 2022, consumers have been cutting back on non-essential spending, such as on clothing, lifestyle items, electronics, and dining out. This shift has been driven by factors including inflation, rising interest rates, job losses in sectors like startups and IT, and a general economic slowdown. Following a post-pandemic surge in spending across various sectors — ranging from clothing to automobiles — India’s retail sales growth decelerated to 4 per cent last year, the report said.
In its annual report, RIL noted that voluntary separations in FY24 were lower than in FY23. The retail sector is known for its high employee turnover, particularly in-store operations, the report stated.
The report quoted Devangshu Dutta, founder of retail consulting firm Third Eyesight, as saying that post-pandemic consumer spending spiked, prompting retailers to expand their networks and floor space.
“However, if some of the stores are unviable, then management teams are now highly objective, even ruthless, and will shut stores. In addition, any company planning to list would like to have healthy and lean operations, although we cannot pin-point it to Reliance in this case,” Dutta said, as quoted by the report.
First Published: Aug 19 2024 | 1:43 PM IST
