Eid, Pahela Baishakh: Ctg traders say clothing sales drop 30%

With two major festivals – Eid-ul-Fitr and the Bengali New Year – in view, businesses stocked up on a larger amount of clothing products compared to last year. However, sales fell short of expectations, leading to a decline of 25-30% year-on-year in business.

This bearish trend has disappointed all kinds of traders, including those in various markets, shopping malls, small and large clothing stores, and hawkers in the port city.

While sales were low at the beginning and even in the middle of Ramadan, businesses waited for an uptick at the beginning of April once people received their salaries and bonuses.

But that has not happened, and traders in different markets and shopping malls have reported that even though only one or two days are left before Eid, sales have not reached the desired level.

Syed Khurshid Alam, Chattogram district general secretary of the Bangladesh Shop Owners Association, told The Business Standard that there are about 60,000 clothing shops in the port city and all upazilas of the district. Businesses have invested more than Tk20,000 crore in total, focusing on Eid and Pahela Baishakh sales.

"Traders are not satisfied with the sales, even though the two major festivals coincide this year. Compared to last year, sales have decreased by 25-30%," he expressed his disappointment.

Mohammad Ismail, who owns the one-stop shopping mall Parshamani in Teribazar, a large wholesale and retail hub of clothes in the port city, told TBS, "The sales of our shopping mall are about 30% less this year. Many used to buy clothes to give as gifts to relatives. This time, due to the financial crisis, customers are not purchasing more than one dress at a time. This has affected sales."

Teribazar is the largest wholesale market for garment products in Chattogram. Along with buyers, cloth merchants from different upazilas in the district buy wholesale clothes from this market. It is also a wholesale market for saris and lungis as Eid gifts (Zakat) for the poor. Shoppers, wholesale buyers, and zakat clothes sales have decreased by about 20-30% compared to last year, traders said.

Zakir Hossain, former president of the Mimi Super Market Traders Association, said almost all the 263 companies in the market have invested between Tk1 crore and Tk1.5 crore.

"However, the number of buyers is fewer compared to last time. Although there is a rush of customers in the afternoon, the sales situation is different this time. The number of shoppers during the day is about half of what it used to be," he added.

According to the Shop Owners Association, which represents 101 market-based platforms in Chattogram city and district, the port city has 15 upscale malls and 58 malls with modest standards.

Chattogram City New Market, Reyazuddin Bazar, Sanmar Ocean City, Central Plaza, Mimi Super Market, Afmi Plaza, Amin Centre, Apollo Shopping Complex, Akhtaruzzaman Centre, Chattogram Shopping Complex, Carey, Lucky Plaza, Khulshi Town Centre, Finlay Square, Unesco Centre, Alankar Shopping Complex, Pahartali CDA Market, Jahur Hawkers Market, and other small and large markets are currently engaged in last-minute sales.

Traders say the rate at which traders used to buy clothes before and during Ramadan in various upazilas has declined. The number of buyers is also fewer. As a result, even though traders may not incur losses, it will be difficult to achieve the desired profit.

Sharmin Sultana, who came to shop at Mone Rekho shopping mall in Teribazar, said, "I have to buy new clothes for the whole family for Eid, so I came here as I do every year. The prices are higher than last year, even though the preferred clothes are available in the market."

New clothes are manufactured in the Khalifa Patti area, adjacent to Andarkilla in the port city. About 6,000 workers are employed in approximately 300 small and large factories and 150 showrooms here. Normally, during Eid, clothes worth Tk3-4 crore are sold daily, but this time the sales are lower, as reported by traders. On April 6, the number of wholesale buyers was low.

Nurul Islam, President of the Khalifa Patti Merchant Welfare Association, told TBS that each sewing worker can earn around Tk30,000 during the Ramadan season. However, this year, there is less work compared to last year. The usual amount of cloth ordered by traders every year was not available this time. Until Eid, traders typically take clothes four to five times, but this did not happen this year. The increase in raw material prices has led to higher clothing prices, affecting buying and selling.

In addition to the markets, shopping malls, various star hotels, community centers, and open fields in Chattogram are hosting Eid shopping fairs. Various products, including items for women and men, cosmetics, and more, are being sold there. These fairs are primarily organised by various female entrepreneurs operating online.

According to the Chattogram Women's Chamber of Commerce and Industry, there are 2,500 fashion and boutique houses in Chattogram. Of them, 1,000 companies produce clothes in their own factories.

According to information from the Chattogram Combined Hawkers Federation, there are 22,000 mobile shops (hawkers) in the port city. Among them, 15,000 hawkers sell clothes, shoes, and cosmetic products.