Hanoi (VNS/VNA) - Many businesses have been forced to implement socialdistancing rules due to the COVID-19 pandemic, and the retail sector hasbeen hit hard.

Arecent report published by the Ministry of Industry and Trade showed thepandemic was having a direct impact on distribution businesses.

Totalretail sales of goods and services in the first three months were estimated at 1,246trillion VND (53.29 billion USD), up 4.67 percent compared to the same periodlast year, but the lowest increase in recent years.

InMarch alone, total retail sales of goods and services decreased by 0.8 percentover the same period last year for the first time since 2016.

Reduced purchasingpower has caused the whole retail industry to tumble. Many big supermarketssuch as Lotte, Co.opmart, Intimex and Aeon Mall are in crisis, withrevenue dropping by up to 50 percent.

Specifically,Lotte’s revenue declined by about 50 percent in February compared to Januaryand more than 20 percent over the same period last year.

AeonMall Vietnam’s January revenue decreased by 2 percent, and February was 6 percentbelow target.

SaigonCo.op Mart’s retail sales in the first two months of this year dropped by about50 percent year-on-year.

Onlyfast food products, dry products, masks and hand sanitiser areselling faster.

Dueto the outbreak, people in some sectors are out of work, so many familieshave had to tighten spending, which has greatly affected the retail industry.

KhongThu Trang, who lives in Cau Giay district, Hanoi, shared that COVID-19 had puta lot of financial pressure on family spending.

Sheand her husband have stayed at home without work for nearly a month, resultingin a significant cut to their income.

Theyhave been forced to reduce living expenses and cut unnecessarypurchases to help her family overcome this difficult time, Trang toldthe Voice of Vietnam (VOV) news portal.

Similarly,Tran Quang Hieu's family in Hanoi have also been finding ways to reducespending during the outbreak, such as limiting shopping and shoppingeconomically.

Expertssaid saving was necessary in the current situation, but this had posed aproblem for businesses trying to grasp consumer psychology toadjust production and business plans in line with market fluctuations tomaintain operations and overcome the difficulties caused by the COVID-19pandemic.

Retailexpert Vu Vinh Phu said the situation was a huge challenge which the retailindustry must overcome, but also an opportunity for the retail industry to lookback on itself to be more innovative in purchasing goods to serve society moreeffectively.

Theretail industry must innovate comprehensively and overcome shortcomings forbetter efficiency, he said.

Phusaid the quality and price of goods must be raised, especially in supermarketsand trade centres where consumers felt safe in their purchases.

Itwas also necessary to review unreasonable prices and adjust to an acceptablelevel.

Thisshould also be considered an opportunity to continue renewing the waywe serve consumers and build a brand sustainably, he added./.