New Delhi, Sept. 19 -- Slack demand leading to lower cash accrual, elevated inventory levels and curtailed bank finance will lead to moderately negative credit outlook for gold jewellery retailers this fiscal and hard-brake store expansion, said credit ratings firm CRISIL said in a report.
The report on Thursday said that sales volume would plunge because of curtailed discretionary spending following the Covid-19 pandemic, stores remaining shut for most of the first quarter, and intermittent lockdowns in some states in the second quarter.
''The number of new store additions is expected to reduce to almost a third of the average between fiscals 2017 and 2020,'' the rating firm said.
It further said that consequently, capital investment...