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    Covid Impact: Car movement at malls halved during January 3-23, reveals data

    Synopsis

    Lower footfalls and sales have led to excess inventory of stocks at stores in shopping malls, and malls Pacific group and Select Citywalk reported a 50-60% drop in footfalls at the beginning of the month.

    ‘Car Movement at Malls Halved during Jan 3-23’Agencies
    Shopping malls saw footfall drop up to 30% in the first fortnight of January because of restrictions imposed by various states, according to industry body Shopping Centres Association of India (SCAI).
    Car traffic in malls declined 50% in the three week-period starting January 3, while that of moving in and out of residential societies is down 36-45% in the same time period, according to new data by car app Park+, which tracks 2 million car owners on its platform and works with malls, residential societies and corporates.

    "Even markets without severe restrictions, such as Hyderabad and Ghaziabad, have seen a dip in vehicular movement," said Park+ chief executive Amit Lakhotia. Curbs on mobility directly impacts consumption of discretionary and impulse products.

    While Delhi announced weekend curfew in the first week of January, other states such as Maharashtra, Karnataka and Punjab also announced night curfews and other curbs in early January to curtail the spread of Omicron.

    Lower footfalls and sales have led to excess inventory of stocks at stores in shopping malls, and malls Pacific group and Select Citywalk reported a 50-60% drop in footfalls at the beginning of the month.

    Ratings agency Crisil said in a note earlier this month that rental revenues at malls could decline by 10% this fiscal, but added that recovery will be relatively faster compared to the first two waves of the pandemic.

    "Renewed restrictions and localised lockdowns to contain the Omicron variant-led third wave of the Covid-19 pandemic will pare as much as 10% off the rental revenue of mall owners this fiscal, compared with earlier expectations," the note said.

    The report, which analysed 14 leading malls, said, "The third wave may restrict recovery of mall revenue in fiscal 2022 to 70-75% of pre-pandemic levels as against earlier expectations of 80-85%," Crisil Ratings director Anand Kulkarni wrote.

    Shopping malls saw footfall drop up to 30% in the first fortnight of January because of restrictions imposed by various states, according to industry body Shopping Centres Association of India (SCAI). However, the past few days has seen recoveries, the association chairman Mukesh Kumar said.



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