Sunday, May 19, 2024

20% Drop in Eid shopping as Pakistanis Affected with High Inflation

The sales of all categories, apart from women’s clothes, have decreased by 20%, according to Tariq Mehboob, CEO of the men’s clothing company Royal Tag and head of the Chain Store Association of Pakistan (CAP).

The months leading up to the Muslim holiday of Eid al-Fitr has seen a major drop in retail sales in Pakistan compared to past years, according to merchants, as customers’  effects of decades-high inflation.

The year’s biggest sales typically occur in the weeks leading up to Eid al-Fitr, which will mark the conclusion of Ramadan.

However, the entire country is currently experiencing a severe economic crisis.

Owner of the women’s clothing company Cross Stitch Asad Shafi stated, “Pakistanis have lost more than 50% of their wealth in the previous two years as a result of devaluation, so you’re now selling to individuals with 50% fewer accessible finances, but the cost has gone up 100%.

“The expectation of the fashion retailers is so low that even meeting breakeven or the bare minimum sales just to stay alive is acceptable,” he continued.

Pakistan predicts that its economy would expand by 2% this fiscal year, while the World Bank downgraded Pakistan’s growth expectations from 2% to 0.4% in April.

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