Jewellers see just 10% of pre-Covid sales as lockdown hits sentiment

For the second straight year, the gems and jewellery industry is set for almost a washout of business on Akshaya Tritiya as only about 10 per cent of pre-COVID sales of 2019 are expected on Friday amid the raging pandemic sapping footfalls and purchasing power of people.

In a normal year, the industry does business of 25-30 tonnes on Akshaya Tritiya, but this year, it expects a maximum of 3-4 tonnes of sales as offline sales have been badly impacted. Some organised players like Kalyan Jewellers did online bookings of gold which will be physically delivered later.

   

“The second wave of the pandemic is turning out to be much worse than last year with huge loss of life across the country. This has created an overall negative consumer sentiment,” All-India Gems & Jewellery Domestic Council (GJC) chairman Ashish Pethe told PTI.

He said lockdowns are imposed in almost 90 per cent of the states, where retail jewellery stores are closed and no delivery is allowed.

This year, Pethe said, the business on the Akshaya Tritiya is expected to be around 3-4 tonnes compared to 2-2.5 tonnes last year and 25-30 tonnes during the pre-Covid times.

The jewellery industry is witnessing token digital and tele bookings, where the customers are purchasing or booking the bullion and asking for delivery when things improve at the ground level, he said.

“Jewellers are expecting only 10-15 per cent sales this Akshaya Tritiya in places where the lockdown is not imposed or there are partial shutdowns. Mostly coins, bars and small jewellery items are getting booked for this auspicious day,” he added.

India’s COVID-19 tally of cases climbed to 2,40,46,809, while the death toll rose to 2,62,317 with 4,000 fresh fatalities, according to the Union Health Ministry data updated on Friday.

During the ongoing second wave of the COVID-19 infections, many states have imposed lockdowns or lockdown-like restrictions as a desperate measure to restrict the spread of the virus.

India Bullion and Jewellers Association (IBJA) director and PNG Jewellers Chairman and Managing Director Saurabh Gadgil opined that even as there have been digital bookings taking place since morning, the overall consumer sentiment is negative due to the second wave of the pandemic raging across the country and lack of liquidity.

“Last year, the overall sales had been around 2.5 tonnes and this year we are expecting around 1-1.5 tonnes, which is even less than last year and only 5 per cent of the normal 25-30 tonnes business of pre-Covid level,” he stated.

“Once things settle down, the consumer sentiment will pick up as gold prices are expected to go up from the current levels,” he added.

Echoing a similar view, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said the business is expected to be minimal as only 20 per cent of the company’s showrooms are open with limited 3-4 hours restrictions.

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