The most enterprising sector of the economy was rebuilt on the go

But during the fight against the pandemic in the fashion industry, this sector is experiencing unprecedented pressure – to prevent the spread of infection, most of the shops had to be closed. On 14 April at a meeting on economic issues, President Vladimir Putin said that the volume of retail trade in the country in April 2020 fell by more than 35 percent.

According to a study by the it company “Motor” specializing in the sale and service of online ticket office, by 30 March, 37 percent of outlets in Russia are temporarily stopped. In Moscow at this moment temporarily closed 73 percent of outlets in Saint-Petersburg – 58 percent. In the Central district stopped work, 46 per cent of outlets in North West and 43 per cent, in the Urals ― 39 percent, in the Volga ― 36%, South 34%, in the Siberian and far East, 27 percent.

the Researchers said: more of the new conditions affected the services sector and the trade of inedible goods. Work was suspended 85 percent of clothing stores, 78% were selling flowers, 75 percent of the electronics stores.

“We have seen a significant drop in revenue even in those segments which are not subject to the restrictions of the quarantine. Due to the decrease of customer traffic, illness of staff or difficulties with the supply was temporarily closed for about 25 percent of super – and minimarkets, bakeries and pet stores,” said analysts in the message of the current study.

After the announcement of quarantine measures originated its own dynamics: in the first week worked 39.5 percent of Russian retail outlets, on the second week – is 44.4 per cent.

Business activity has grown after the temporary stop of the opened part of the stores of spares, materials, tools, products for garden, auto services and tire services.

the biggest risk in the current situation, most experts believe the issue of unemployment. Analysts of the Center for macroeconomic analysis and short-term forecasting (CMASF) estimates the effects of the introduction of mode isolation for a year, reflecting the risks of the industry without state support and adjustment mechanisms.

the Estimates showed that the potential demand on the labour market for the year of such a regime can be 15 million people, some 4 million in trade (about one million people every quarter in the framework of this model). However, the researchers note that in reality the damage should be somewhat less.

to Keep the balance in a difficult situation helps, in particular, the rapid transition of trade to the growth in the demand for delivery services. So, according to statistics portal “” by the end of March in Moscow the number of vacancies for the post courier increased by 17.9 percent (while the number of resumes of applicants for the position of courier grew more rapidly by 29 per cent, and 65 per cent of all such summary is in Moscow).

a Number of delivery service, announced an increase in the state. And grocery retail, particularly the big players, as the least affected segment, permanently or temporarily ready to employ employees from other networks, clothing stores, sporting goods, fast food and so on.

the proposal was made by the trade network “Pyaterochka”, which in late March announced a further recruitment for a number of vacancies.

that Occurred in the labour market situation is unique not only for Russia but for the whole world, says Director of staff and organizational development of the trade network “Pyaterochka” Larissa Bodyagina. – For more than three weeks, the part of the employers is developing a new format of work – remote, and some companies even forced to stop their work, which of course is not the best way affects the labour market as a whole. As a result, we are seeing a big surge of wanting to find a job in the trade network “Pyaterochka”, and not just for temporary positions but also permanent. This is due to the fact that we continue to work in full, so as provide the population with food and essential commodities. Over the past month we have employed 12,500 people, more than 1000 of them are part-time, i.e. time positions in stores and distribution centers. Almost all temporary positions are taken by employees of grid companies were forced to suspend their work – McDonalds, Sportmaster, and others.

Such high demand to work in grocery retail is clear: continuing the work of the network, responsible for all assumed liabilities, in terms of jobs and benefits, the preservation of the social package in full.

Another distinctive feature of the last month from the point of view of the labor market – huge demand for the order pickers to deliver their products. We launched a new service – Express-shipping “Pyaterochka” in Moscow, Kazan, will soon launch in other cities. In plans we had a gradual start, but the pandemic has imposed its own adjustments, and we accelerated. For new business we actively recruit staff of packers, predicting the rapid growth of the segment of delivery, not only during the quarantine, but after removing all constraints

Another problem facing trade – a necessity in a cash gap of unprecedented scale to pay not only salary, but also rent. Some shopping centres and landlords of street shops are ready to reduce CENES for tenants or provide them with a vacation. Officially declare this commitment and a number of municipalities disposing of their site business.

“the Situation with restrictions due to the spread of COVID-19 will seriously affect the segment of street retail. The best solution would be if the owners and tenants will be able to agree on temporary terms of lowering the rent, not to be left without income, neither the one nor the other side. Worst case scenario – if all the owners and tenants do not go to meet each other, and there will be many vacant premises. To find a new tenant on the same terms would be difficult. The new tenant will negotiate with the new market realities and one cannot say that conditions for new tenants will be more attractive”, – said the Deputy Director of Department strit-retail international consulting company Colliers International Larisa Eremina.

In the current situation the system has to rely on flexibility following the introduction of deferred taxes and levies from the authorities and the right to vacation credit for part of the business. So, the Association of retail companies ACORT said that I consider it possible to abandon penalties in respect of reliable suppliers for failure to supply of goods if it occurred as a result of measures imposed to prevent the spread of coronavirus infection, such as restriction of work of the enterprises or the movement of vehicles.

another challenge faced by the retail industry, is also reported in the HSE: retailers have begun to from suppliers notice of price increases an average of 5-15 percent, and in some cases up to 50 percent. This allows us to forecast a gradual increase in price as soon as purchased at a lower price the product will be replaced by more expensive. To reduce this effect for the most vulnerable segments of the population, the number of networks has refused the trade estimates for categories of goods as in its production and sale. However, such measures may cause rapid emergence of deficit for some products, while the deficit is now at retail is the exception rather the rule.