‘With low sales, rising costs some garment traders mull closing shop’

AMMAN — Around 15 to 20 per cent of garment traders are expected to leave the market next year, a sector leader claimed on Wednesday.

Garment Traders Association President Sultan Allan said investments in the apparel trade sector are worth JD900 million, but warned that stakeholders are suffering a drop of over 14 per cent in sales compared with 2015.

“Some merchants [in major markets such as Jabal Al Hussein in Amman] have not sold anything for five to seven days, which has never happened before except during the 1990-1991 Gulf War,” Allan told The Jordan Times.

In 2014, workers in clothing markets were around 57,000, 96 per cent of whom are Jordanians.

If 10 per cent of the merchants leave the market, over 6,000 people will lose their jobs, according to Allan. 

The association leader blamed the market losses on the high rent, taxes, customs duties, customers’ falling purchasing power, and the growing popularity of online markets.

Online sales account for 25 to 30 per cent of the whole market, Allan said, urging the government to intervene and salvage the sector.

Osama Juneidi, a retailer in Jabal Al Hussein, said he is obligated to offer promotions and sell his goods at prices lower than the cost because he has to make money to pay several financial commitments. Otherwise, mounting debts could cause his imprisonment.

In Jordan there are around 9,750 clothing and shoe wholesalers and retailers, noted Allan.