Eid clothing sales take a dip amid economic strains

Shoppers have cut back spending on clothing this Eid season amid economic strains, including an upward inflation trend and increasing commodity prices.

Both wholesale and retail sales of clothing items have dropped significantly this year compared to the last Eid season, according to traders.

Based on feedback from sellers of various markets, including Islampur, Aziz Super Market and Narsingdi's traditional Baburhat, wholesale sales this year have dropped 30-40% while retail sales have declined 20-30%.

Traders in the capital said, despite their efforts to attract customers with new products and promotions ahead of Eid, there has been a noticeable decline in sales and customer footfall this year.

Traders, who made huge investments ahead of the Eid season, are now fearing losses as huge stocks of dresses remain unsold.

"This year's sales have been very disappointing. Sales have decreased by more than 20% this year", said Md Milon, manager of Unique Fashion at Aziz Super Market.

"We are wholesalers and our sales are completed by 15 Ramadan. But this year that did not happen," he said, adding that the condition of retailers across the country is worse than theirs.

The manager of the retail outlet Style Zone at Muktijoddha Market in Mirpur, Zahid Hasan said, "We brought in a huge collection for the Eid but could not sell much till 15 April."

Mohsin Parvez, sales executive of Deshi Dosh, spoke of a similar situation at his store.

Meanwhile, the number of customers visiting markets and shopping malls has dropped significantly.

Mehedi Hasan, sales executive of Easy Fashion in Bashundhara outlet, "Usually ahead of Eid, this market is very crowded, which has not been the case this year."

Md Arefin, owner of Blue at Fortune Market in Mouchak, also said that customer footfall has decreased in the market.

"We do not understand what happened this year. This year the market is rather empty, unlike other years," he added.

Traders say people are cutting back on spending due to various reasons, including a rise in prices of daily essentials.

Sellers in Old Dhaka's Islampur, one of the largest wholesale clothing markets in the country, said that sales were good until 10-15 days before Ramadan began. Afterwards sales started to plummet.

Vendors at Islampur market said in previous years they would get close to wrapping up sales by around 20 Ramadan.

"Due to the increase in daily necessity prices after the Ukraine-Russia war, people are prioritising spending on basic essentials, including food over other items such as clothes," Islampur Cloth Merchant Association General Secretary Nesar Uddin Molla told The Business Standard.

"It is not only the middle class and the lower middle class, but also the upper class people who have cut back on spending," he said.

According to the Islampur Cloth Merchant Association, some Tk10,000 crore worth of clothes are sold in Islampur around Eid-ul-Fitr.

Islampur meets about 60% of the annual demand for locally produced indigenous fabrics and about 40% of the annual demand of foreign fabrics, which are mainly imported from India, Pakistan, China, Thailand and Japan.

Usually clothes from different factories of Narayanganj, Narsingdi, Tangail and Keraniganj come here. Pyjamas-punjabis, shalwar-kameez, sarees, three-pieces, pant-pieces and lungis are sold in Islampur.

There are more than 6,500 shops in Islampur. This number will exceed 10,000 if the roadside shops are included.

Mohammad Shahin, sales staff of Rocky Print Sarees, told The Business Standard, that sales started to decrease since the start of Ramadan.

According to the Bangladesh Bureau of Statistics, point-to-point inflation rose to 9.33% in March, the highest in seven months. Although non-food inflation has come down slightly according to government data, commoners are still facing the pressure of rising prices of other goods including clothing.

Sales at the Baburhat wholesale clothing market of Narsingdi Sadar Upazila have also seen a significant decline.

President of Narsingdi Chamber of Commerce and Industry Abdul Momen Mollah said, "Some Tk2,500 crore worth clothes are sold at the traditional Baburhat market around Eid. This time the sales decreased by about 30%."  

Traders of the capital's Gausia Market also said that wholesale sales have decreased this year compared to last year.

Mohammad Mahbub, branch manager of Easy Fashion of Aziz Super Market, said that the sale of wholesale products has decreased by 40% this Eid.

Sales of other items, including shoes, cosmetics and ornaments have also declined.

A sales executive of Apex Shoes said although a good number of people are visiting our outlets, sales have been rather less than other years.

"A reason may be the increased price of shoes," said the sales executive.

Nazmun Nahar, sales executive of a Bata Shoes outlet, and Sumon Ahmed, an ornaments vendor in Mirpur 1, expressed similar sentiments.  

Puspita, sales executive of a cosmetic shop in Eastern Plaza, said, "We are yet to see any massive sales that usually take place ahead of Eid."

Md Helal Uddin, president of Bangladesh Shop Owners Association, said, "Basically major Eid sales take place in the last 10 days ahead of Eid. But this year, the outlook is not bright at all. Price increases of all types of products as well as inflation have forced people to reduce spending."

Besides, the recent fire incidents at Bangabazar market and New Super Market have somewhat contributed to deterring people from going to markets, he observed.