Terror strikes killjoy in Pettah’s retail trade
View(s):Colombo’s retailers, already suffering in a downbeat market, have experienced a sharp drop in sales in the wake of the April terror attacks, but what happened earlier last week has crippled them even further, adding weight to calls for support for the small businesses and retail shops.
The police arrested some people recently after racist mobs attacked Muslim-owned shops in one of the towns where Catholic churches were targeted in multiple suicide bombings in April 21 that killed more than 250.
Proprietors say that terror strikes played spoilsport for their retail, with consumers not wanting to spend as they fear for their jobs. Retail sales have never been before so low, shop owners in Pettah say. “Earlier we used to do Rs. 40,000 in sales. Now it has come down to Rs. 10,000,” S. Balakumara, shopkeeper at Laksiri Trade Centre which sells luggage items and bags in Malwatte Road told the Business Times on Tuesday.
Another shop owner who didn’t want her name mentioned said she’s wondering how to repay her loans. “We are struggling to pay these loans back. I am planning to visit my bank in a few days to explain my plight,” she said. As sales slip and costs mount, several retailers said that they will eventually be engaged in a tug of war with suppliers. Major suppliers will gradually refuse to supply goods to many retailers when they fail to pay or delayed payments, they added.
The main reason for this is the waning footfall in Pettah and related areas, many proprietors said. They noted that the broad plummet in retail sales at the end of the April holiday shopping season was expected, but the Easter Sunday bombings saw a mix of crosscurrents in shopper behaviour. The recent mob violence in the North Western province did nothing to boost discretionary spending amid the government shutdown, the shop owners and proprietors said.
Laxman Mendis, Proprietor, Prince Trade Centre noted on Tuesday that sales are down since April 25 and during the past two days it was down to as much as 90 per cent.
The paint sellers in byroads near Malwatte Road lamented that it’s a case of survival now. “We know the government is doing its part to keep us safe, but how are we keeping our businesses safe and running?” M. Munir, a paint distributor and seller asked.
The outlook in otherwise busy Pettah streets was bleak. Those streets steaming with shoppers and bargain hunters in any given day of the week were not as full of activity.
Fruit and vegetable vendors at the Manning Market were disappointed that they may not be able to make ends meet. “I believe everybody in the industry is hoping for the authorities to be more effective in guaranteeing security in the country. So far, the trend is not promising,” L. Jayawathi, a vegetable vendor said, adding that she wasn’t able to sell potatoes for four days. Her friend Wilfred selling fruits at the adjoining place noted that many are still apprehensive about coming towards the Pettah area.
Most retailers are already in cost-cutting mode and some are even looking at exiting the business – lock, stock and barrel. (DEC)