Covid-19; 50,000 shops shut down in Bengaluru due to rising financial losses

More than 50,000 shops in Bengaluru had put down their shutters for a permanent basis while the others are looking up to closure if the sales don't increase in the upcoming festive season.

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Covid-19; 50,000 shops shut down in Bengaluru due to rising financial losses. The policy times

The coronavirus pandemic and the lockdowns had caused major harm to the businesses across sectors all around the globe. More than 50,000 shops in Bengaluru had put down their shutters for a permanent basis while the others are looking up to closure if the sales don’t increase in the upcoming festive season.

Even though Karnataka was one of the states that uplifted the lockdown rules way earlier than other states, it is suffering miserably in its business market. As reported by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), around 12% to 15% of four lakh shops in Bruhat Bengaluru Mahanagara Palike (BBMP) limits had shut down and more 8% to 10% are on the verge of closing down.

The shops that had put down their shutters are mainly the ones that sell readymade garments, footwear, mobile accessories, stationery goods, small food corners, etc. A noticeable number of shops had been shut with a “To-let” board hanging outside.

Lack of business and an increasing amount of rental dues are the primary reason for the closures. Maximum of the shops that had been closed down were rented by people from other states and Kannadigas from outside Bengaluru. It was a massive blow to them at the time of the prevailing lockdowns when there were not even 25% of sales, and it became tough for them to manage their house rents as well as the rent of their shops.

Due to lack of business, the owners of the shops had been suffering from overdue rental payments. The shops were completely closed for the month of April and May due to the lockdowns. This marked a huge loss in the businesses of these shopkeepers. The situation remained the same even after the upliftment of the lockdown as there were no sales. Apart from this, the owners of start-up businesses also see no future. Being burdened not only with rental payments but also with loan installments they are in doubt as to how to tackle this unprecedented loss.



 

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Covid-19; 50,000 shops shut down in Bengaluru due to rising financial losses
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More than 50,000 shops in Bengaluru had put down their shutters for a permanent basis while the others are looking up to closure if the sales don't increase in the upcoming festive season.
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THE POLICY TIMES
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