KARACHI, Oct 3: Eid shopping during first 20 days of Ramazan has not shown any significant increase as the market people attribute lack of buying euphoria among consumers because of deteriorating political situation coupled with hot weather and cash scarcity at the month end.
Markets players had already reported about 50 per cent decline in sale of Eid related items in the first 10 days.
Many market people are divided over the negative impact of political situation on consumers’ passion for shopping. However, others ruled out any negative impact of political uncertainty.
Traders anticipate that probably the last 10 days may boost up their sales turnover in case the political conditions remain calm after October 6 presidential election.
Consumers are not seen in large numbers during the day in many shopping centers. Even traders said that the rush of buyers after mid-day also cooled down during the first 20 days owing to rising street crimes like snatching of mobiles and cash at gunpoint from pedestrians and car owners.
Like last year, there have been problems of limited parking space outside the shopping centers.
It is expected that many families, who have to make readymade items’ purchases for wedding purposes soon after Eid, may come out now in large numbers.
It has been noticed for the past few years that the market people avoid portraying the real picture of their Eid sales as they fear that showing good sales prospects may lure tax officials. However, the last 10 days are really decisive for the traders as they will endeavor hard to extort maximum from the consumers’ pockets by charging double or triple from the actual rate.
Chairman Tariq Road Traders Action Committee Siddiq Memon said Eid sales, which should have picked up in the first 20 days of Ramazan, remained surprisingly only 40 per cent as compared with last year.
“Last year was good in terms of sales but the current political uncertainty has made a negative impact on the consumers’ as well as sellers’ sentiments,” he added.
The delay in release of imported children garments and shoes by the customs has also created shortage in the markets. However, the customs is releasing the containers very slowly.
He said that the dwindling purchasing power had also made an impact on consumers’ sentiments as they are more interested in buying only required items in limited quantities instead of bulk or extravagant shopping.
Director Bonanza Garments Industries Hanif Bilwani said that the company’s sales used to grow by 20-25 per cent for the last three years during first 20 days before Eid. Now there has been only 10 per cent growth during this period as compared with same period of last year.
“People are watching TV channels and getting frightened over the rising political chaos in the country,” he said while expecting only 15 per cent growth in sales in the last 10 days before Eid depending on the political situation.
He ruled out any impact of rising food inflation in restricting buyers to go for shopping.
“Garments rates have surged only by three to four per cent in the last one year. The industry is already fighting against the arrival of foreign goods at cheaper rates especially from China,” Hanif said.
Owner of Liberty Store in Bahadurabad Nasir Salim said that the first 20 days of Ramazan had remained weak in terms of sales owing to very low turnout of buyers in daylight coupled with scarcity of cash as people got the salary when the holy month had passed half way. However, he said rising food inflation had definitely made an impact on purchasing power.
“People used to buy four to five set of clothes for their children two to three years back but now they prefer to have only one or two as per their limited income,” Nasir said. He ruled out any impact of the current political crisis on the consumers’ buying passion and said people irrespective of situations definitely come to the market for their children.
He said people were still not coming in large numbers in daylight but their arrivals at night have improved since Friday.
Owner of New Hilal on Zaibunisa Street Asmar Mehmood said that sales in the first 20 days remained dismal. There should be a growth of 10-15 per cent every year but currently it remained laggard because of decline in unit growth.
Shopping from 11:00pm to 5.00:pm p.m. remained extremely slow due to scorching heat wave coupled with month’s end circumstances as people did not have cash in hand.
Asmar said that uncertain political situation had not made any impact on the consumers as they are least bothered about it.
President Saddar Co-operative Market Society Mohammad Feroz reiterated that buyers’ presence had remained 50 per cent less in the first 20 days as compared with same period last year owing to country’s political unrest coupled with falling buying power.
The market has been showing thin buyers’ attendance after mid-day for the last 20 days. There are window shoppers more than the actual buyers, he said adding that because of rising food inflation consumers have restricted their buying to only most required items.
Senior vice-president Saddar Alliance of Market Association Abdul Samad Khan said that business had remained average in the first 20 days. However, sales are likely to pick up in the last 10 days before Eid.
