THERE was optimism in the business community ahead of Monday's re-opening of the retail sector, which has been closed over the last three months owing to increasing covid19 cases in Trinidad and Tobago and public health and state of emergency (SoE) restrictions that were implemented to curb those cases.

While the expectation is for a slow start to business in the retail sector, there is hope that once as many members of the sector are vaccinated against covid19, the sector can once again begin to contribute to strengthening the economy. TT Chamber of Industry and Commerce Gabriel Faria, Greater San Fernando Chamber of Commerce Kiran Singh and Confederation of Regional Business Chambers co-ordinator Jai Leladarsingh expresed these views on Sunday.

At a news conference at the Diplomatic Centre on Saturday, the Prime Minister said plans for the reopening of the retail sector on Monday would proceed as planned. Dr Rowley said the reopening of the retail sector "will be a big, big step."

Faria said the retail sector consists of thousands of businesses that employ tens of thousands of employees. He also said there are hundreds of large retailers operating in the formal part of the sector and thousands in the informal part.

"Due to the closure of the sector over the past roughly three months there will be pent up demand for certain items. This should create an initial sales lift in some areas such as appliances or household items which need to be repaired or replaced and clothes for work or school."

Faria said many people who are self-employed, have their own businesses or work in the private sector may have seen their incomes decline in over the last 17-plus months, compared to those employed in the public sector.

"Many have resorted to utilising their savings to meet their living expenses."

With the costs of many items increasing over the course of the pandemic owing to increases in the costs of raw materials and logistics, Faria said, "Most people have directed the limited funds they have available to basic food and pharma purchases."

With people being uncertain when or if things will return to some level of normalcy, Faria said people are trying to put aside whatever money they can and based on that, "It's estimated that aggregate demand will be lower than it was pre-pandemic and there will be less discretional spending."

Faria: Delta's arrival changes things

Faria said the recording of the first two cases of the covid19 delta variant in TT has changed the dynamics again.

The Ministry of Health announced a third case of the delta variant in TT on Sunday.

Faria said, given the data showing this variant to be far more transmissible than covid19, Faria said this means" the previous levels of vaccinations estimated to achieve herd immunity are not applicable anymore."

With evidence from around the world showing that vaccinated people are less likely to get sick from covid19 compared to unvaccinated people, Faria sai