The aftermath of a demonetisation exercise: A comparative evaluation of the retail sector

The surprise announcement of the demonetisation exercise of the largest denominations brought about a major transformation in the economic environment. It immediately interrupted and took a hit, to a considerable extent, on the cash-based businesses in the country. The impact on retailing was no exception. It is gradually returning to normalcy as customers and retailers are increasingly adapting to making payments digitally in the post-demonetisation period. Therefore, it is imperative to comparatively explore and analyse the extent of the impacts of both periods on the retail sector. This will definitely provide additional discernments into the phenomena. Hence, this study has been undertaken among 100 respondents in some selected places in Allahabad. The data collected using survey questionnaires with the convenience sampling technique were statistically analysed with SPSS. The research hypotheses formulated were tested using the percentage analyses, the Cronbach's alpha, correlation analyses and ANOVA. The results confirm that order quantities, sale volumes and profit volumes are significant and have positive relationships. However, their mean squares differences were found to be in insignificant positions. On the brighter side, these variables are being increased gradually in the post-demonetisation period. Finally, it is recommended that the manufacturers should revise their promotional strategies to help boost the customers’ patronage of the retailers’ merchandise since the economy is now reviving from the setback.