Clothing retailers, vendors counting loss in peak season

Many small businesses, specially clothing retailers, are counting loss, as the city dwellers prefer to stay home ahead of the Eid-ul-Fitr in fear of getting infected with coronavirus.

Shopkeepers, other than kitchen markets, grocery and medicine stores, said now they barely have customers in their shops even after taking health safety measures, as prescribed by the government.

However, experts said people's spending on non-essential products has shrunk in last two months due to their reduced purchase capability, pay cut and job loss, uncertainty about future, and fear of coronavirus transmission.

Shaheen Ahmmed, President of Fashion Entrepreneurs Association of Bangladesh (FEAB) and CEO of Anjans - a leading local fashion house, said two seasons are very important for local fashion industry - Bangla New Year and Eid-ul-Fitr.

"Clothing retailers missed Tk 20 billion business during Pohela Boishakh, the first day of Bangla New Year, and they are set to miss Tk 45-50 billion Eid sales."

Though the government permitted shops and malls to remain open by maintaining health safety measures, it will have minimal effect on loss recovery, he told the FE.

Indicating to over 5,000 fashion and boutique shops in the country, Mr Shaheen said the fashion industry needs immediate support from the government's Tk 200-billion stimulus package for small and medium enterprises (SMEs).

Aziz Cooperative Super Market at Shahbag, a fashion hub for young generation with over 400 stores, wore a deserted look ahead of the Eid festival despite taking ample health safety measures.

Mohaimen Romel, manager of Rupkotha - a boutique in the market, said their customers are mainly students of different universities. Most of them probably left Dhaka due to closure of their respective institutions.

"We missed the biggest scope of business during the Bangla New Year celebration following shutdown in fear of coronavirus outbreak. Now we are likely to sit idle during the Eid festival also," he noted.

Meanwhile, Md Hasibul, owner of Ashraf Telecom at Multiplan Computer City Centre in Elephant Road area, said although the market has been opened for last one week, only a few people have come here to buy electronic products.

He sold only five pieces of mid-range smart-phones and some accessories so far, while the sale could have been 20 times higher, if the situation were normal.

Some markets like Rajdhani Super Market at Tikatuli, Dhanmondi Hawkers' Market on Mirpur Road, Bangabazar at Gulistan, Dhaka North City Corporation (DNCC) markets at Gulshan 1 and 2, BCS Computer City at Agargaon, Minita Plaza, GM Plaza, Haque Mansion, Mansur Bhaban, and Zahir AC Market on Elephant Road opened on May 10.

Anam Rangs Plaza, a shopping centre on Satmasjid Road at Dhanmondi, opened after ensuring different health safety measures, like installing disinfectant tunnel, checking temperature of visitors, and sanitising their shoes and hands etc, said Hanif Mohammad, a director of the market's shop owners association.

Talking to the FE, Bangladesh Dokan Malik Samity (shop owners association) chairman Md Helal Uddin said for the last couple of years, sales volume of shops across the country reach about Tk 250-300 billion, maintaining a 5.0 per cent year-on-year increase.

Giving no specific figures of loss, he said, "This year, we are incurring significant loss of business due to the coronavirus pandemic, which will have long-term impact on us."

He also said it will be really hard for some traders to resume their business without support from the government after the pandemic is over.

In the meantime, street and footpath vendors are in quandary, as they are not allowed to continue business in open places like before due to higher risk of virus transmission.

Md Masum, a footpath vendor sitting near the city's Farmgate intersection and selling caps, socks, handkerchiefs, undergarments etc, said people throng here even in a normal working day.

"After Ramadan 15 every year, I temporarily hire additional two kids for helping me to deal with increased number of customers. But this year there are hardly any people on the streets."

"Coronavirus pandemic has taken away my business, and there will be no return on investment," he opined.

Dr Selim Raihan, executive director of South Asian Network on Economic Modeling (SANEM), said money circulation during the festivals like Pohela Boishakh and Eid-ul-Fitr is very crucial for the country's economy.

But this year such economic activities were hit hard due to the coronavirus pandemic, leaving many SMEs in tension of extinction, if they do not get support from the government.

"The government can do two specific things to save the SMEs and people working in the sector. Firstly, swift disbursement of funds from the Tk 200-billion stimulus package that the government has allocated for SMEs."

"Secondly, broadening the range of different social safety net programmes to cover the unemployed people who usually work in the country's informal sectors."

He also said millions of people working in different sectors may go below the poverty line due to job loss or less scope of work, which will result in lower purchase capability.

Mr Raihan, also a professor of Economics of Dhaka University, opined that the government needs immediate and effective plans to tackle the pandemic effects for a long period.

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