‘Slow shopping season expected’ in clothing sector

AMMAN — While clothes shopping usually peaks ahead of  Eid Al Fitr, shopping is expected to be “slow” this year due to the “huge financial burdens” borne by citizens, according to an industry representative. 

The state of “recession” in the clothing business is believed to be the result of several factors, said Asad Qawasmi, representative of the clothes and garment sector at the Jordan Chamber of Commerce, who cited “arbitrary” taxes and regulations, the spread of online retail clothing shops, and the “high” operational costs faced by traders. 

“There is an obvious decline in consumers’ demand for clothes this year compared to last year.  Imports of clothes for the summer season  decreased from JD95 million to JD80 million this year,” he told The Jordan Times on Wednesday. 

However, he noted that the increase in operational costs was not reflected in the cost of clothes. 

With around 9,800 clothes and shoe shops across Jordan, Qawasmi said the “illogical” taxes implemented in the past four years, coupled with “uncontrolled” online shopping, have negatively affected the sector.

President of the Garment Traders Association, Sultan Allan, agreed, noting that traders face many challenges today, including the high cost of electricity and rentals, and the “unfair” competition with e-shops, which promote their products through social media without having to shoulder any operational costs. 

“We urge the government to support the sector by reducing taxes and organising the online shopping operations,” he told The Jordan Times. 

While  shopping progressed since the start of Ramadan, it has so far slowed by 35 per cent compared to last year, Allan said, noting that the wholesale to shops also declined by 20 per cent compared to the same period of 2016. 

“The association calls for the holding of a national forum for traders to examine the challenges they are facing and what should be done to overcome them,” he concluded.