The total workforce of these retailers fell to 429,000 in FY24 from 455,000 the previous year.
As many as 12 publicly listed lifestyle chains, grocery stores 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 store expansion in response to declining demand, according to a report by Economic times.
According to their annual reports, this reduction was driven primarily by five major retailers (Reliance Industries’ retail division, Titan, Raymond, Page and Spencers), which together saw their workforce shrink by 17 per cent, or 52,000 employees. This figure includes both permanent and contract staff and represents attrition in the retail sector, the second-largest employer after agriculture. The total workforce of these retailers shrank to 429,000 in fiscal 2024 from 455,000 the previous year.
The report quotes Kumar Rajagopalan, executive director of the Retailers Association of India, as saying: “There is a shortage of talent and we are trying to establish links with universities so that the industry has the option to hire. Some companies may have reduced their staff due to the closure of some businesses, but companies like Shoppers Stop and Trent are continuing to expand and will need staff.”
Change in consumer spending
Since Diwali 2022, consumers have been cutting back on non-essential spending such as clothing, lifestyle items, electronics and eating out. This shift has been driven by factors such as inflation, rising interest rates, job losses in sectors such as startups and information technology, and an overall economic slowdown. Following a post-pandemic surge in spending across several sectors from apparel to automobiles, India’s retail sales growth slowed to 4% last year, the report said.
In its annual report, RIL said voluntary separations in fiscal 2024 were lower than in fiscal 2023. The retail sector is known for high staff turnover, particularly in store operations, the report said.
The report cited Devangshu Dutta, founder of retail consulting firm Third Eyesight, who said consumer spending after the pandemic has skyrocketed, prompting retailers to expand their networks and retail space.
“However, if some stores are not viable, management teams are very objective, even ruthless, and will close stores. Also, any company planning to go public would want to have healthy and efficient operations, though we cannot point the finger at Reliance in this case,” Dutta said, according to the report.
First published: August 19, 2024 | 1:43 PM IS
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