Protests following the arrest of Maharashtra Navnirman Sena (MNS) chief Raj Thackeray today crippled retail businesses in and around Mumbai, the commercial capital of the country. MNS activists forced shopkeepers to shut down on Tuesday, barely a few days before Diwali, the busiest sale season, which could translate into serious financial loss for the retailers.
Leading retailers such as Kishore Biyani-controlled Big Bazaar, Mukesh Ambani-run Reliance Fresh, Aditya Birla’s More, among others, downed shutters during the day. Their cumulative loss could not be ascertained.
Big Bazaar, which runs eight stores in Mumbai, closed at least half of them in the city, which is expected to result in a loss of Rs 40-50 lakh, according to a company executive.
“When costs are fixed and business is not happening, it is a big blow to retailers. One day, they ask you to put hoardings in local language and another day, they force us to close stores. It is becoming difficult to conduct business here,’’ said a chief executive of a leading electronics retail chain, who did not wish to be named.
Consumer durables retailers, who were already seeing slower sales because of an economic downturn, said sales have further plunged as customers stayed away from shops.
Vijay Sales, a consumer durables dealer chain, admitted to a 50 per cent drop in sales today due to the tension-filled atmosphere in the city.
Sufi Electronics claimed a 75 per cent drop in sales today as a result of the violence in the city. The dealer also admitted that this year, despite Dhanteras and Diwali, barely a week away, sales have remained poor compared with that a year earlier.
While BPO firms like WNS, Intelenet and others had regular attendance, some said firms were allowing employees in the second shift to leave early.
By and large, offices were well attended, even as stray incidents of violence were reported during the day. The suburban railway system and the bus service of Brihanmumbai Electric Supply and Transport (BEST) remained unaffected.
Bank branches were functioning normally, though there were fewer customers. Employees at public-sector establishments, including insurance firms, headed home early.
