Narayanganj clothing retailers keep counting losses

More than 5,000 traders in Narayanganj’s readymade clothing markets are suffering losses due to a steep fall in sales.

Over 100 retail markets – located in the large area between Chashara to Gymkhana Lake in the city – are on the verge of closing down their businesses, industry insiders told The Business Post.

Local traders used to sell products worth Tk 10 crore – 12 crore annually during peak seasons, religious and national festivals, and different social events such as wedding ceremonies, but their sales have now dropped to Tk 3 crore – Tk 4 crore, they added.

They cited multiple reasons behind their dilemma. Firstly, their shops were shut down for most of the last two years due to the Covid-19 pandemic restrictions.

Secondly, amid the pandemic, the concept of online shops became more popular, and they outnumbered the physical shops in numbers and quality with added benefits such as a cash-on-delivery system.

Thirdly, as the travel restrictions eased between India and Bangladesh, more and more people are visiting India and shopping in the neighbouring country, which is affecting the local sales.

And finally, different branded shops have started their operation in Narayanganj city, and people prefer to go to these fixed-price shops instead of visiting retail markets.

Abdul Kadir Jilani, a retail garment shop owner in the Baily Tower of Chashara area, said, “If I cannot make an adequate profit in the next few months, I would have to close down my business.

“Even ten years ago, the situation was a lot different. I suffered big losses amid the pandemic, and the customers are no longer interested in coming to our stores. If this continues, I will not be able to stay in business for long.”

Echoing the same, retail garment trader Saju from the DIT market, said, “I had to sell my shop located in the F Rahman Market after failing to repay the loans I took from a bank. Now I am searching for other ways to survive as our retail industry has little to no demand here.”

Sujon, who also sold his shop to repay his loans, said he now works at another shop to provide for his family.

Addressing the issue, Vice-President of Bangladesh Shop Owners Association and President of Narayanganj Shop Owners Association Md Shahjahan said traders of this district have been importing garment products from India since 1991.

“As Indian products hold a great demand among the customers, the traders used to obtain a good profit from it. However, as tourist visas have been made available, more and more people are visiting India and shopping directly from there, which has affected our sales,” he said.

He mentioned having five shops, but he sold off three of those after suffering significant losses.