With Eid-ul-Fitr fast approaching, a stark contrast is emerging between branded retailers and traditional non-brand sellers, reflecting shifting consumer behaviour and economic realities.
While brands report stable or even double-digit growth in footfall and sales, non-branded retailers across the country are grappling with a 20%-30% year-on-year decline in sales.
For non-brand sellers, the downturn is attributed to consumers' financial constraints, safety concerns, and security risks while shopping.
From large shopping malls to footpath vendors, retailers are hoping for a last-minute surge in sales ahead of the country’s largest shopping festival.
Shops are staying open until 2am, yet a significant drop in customers after 10pm is noticeable due to security concerns.
Vendors report sluggish sales, with many people having left the city early for Eid due to the extended holiday period.
Meanwhile, footpath vendors, remain hopeful for a last-minute sales surge akin to last Friday’s rush.
Despite such hopes, most non-branded clothing retailers are bracing for a 20%-30% drop in sales compared to last year, a sentiment echoed by traders in Chattogram.
Teri Bazar, the city’s largest wholesale clothing hub, traditionally bustling before Ramadan, has witnessed a notable 25% decline in sales, according to Farid Uddin, Joint Secretary of the Teri Bazar Traders' Association.
“Our annual business hovers around Tk5,000 crore, half of which typically comes from Eid sales, but this year’s figures are significantly lower,” he stated.
A 2024 study by the Bangladesh Shop Owners Association estimated that Eid shopping generates around Tk1.7 lakh crore in turnover, primarily driven by long-established non-brand retailers.
While non-branded retailers face turbulence, leading brands such as Apex, Bata, and Lotto report increased consumer trust, with footfall and sales up by 10% compared to the previous Eid.
With footwear prices ranging from a few hundred taka to over Tk50,000, brands like Apex have become the preferred choice for educated shoppers who appreciate a hassle-free experience and the convenience of online product exploration.
Branded retailers tend to absorb rising costs and compensate through higher sales volumes.
Eid is also a crucial period for accessories, cosmetics, appliances, and automobiles.
As the final days of Ramadan unfold, retailers are banking on a pre-Eid shopping surge to mitigate an otherwise sluggish season.
While branded retailers continue to enjoy steady growth, traditional non-brand sellers are facing mounting challenges in an economy where consumer priorities have shifted amid inflation, security concerns, and changing spending habits.