Cash-strapped middle class resort to footpath for Eid shopping

Nineteen-year-old Meem and her mother on Saturday (30 march) navigated the busy streets from Mirpur's Shewrapara to New Market for their Eid shopping. However, after six hours scouring the market, they returned empty-handed, unable to find anything within their budget. 

Meem and her mother now plan to browse the footpath shops for their Eid shopping.

"Even on the footpaths, prices are sky-high, making it difficult to find anything within our budget. Last year, we could buy a dress for Tk400-Tk500, but now it's Tk100-Tk200 more, even from footpath vendors," Meem voices her frustration at the steep prices. 

As Eid approaches, footpath markets in the capital witness increased foot traffic, primarily from the middle class, while lower-income individuals see Eid shopping getting out of their reach.

Saidul Islam, a vendor selling shirts in front of Aisha Complex in Mouchak, laments the rising clothing prices, making it difficult to cater to low-income customers. 

Sales have dwindled, he said, with no transactions occurring between 1pm and 3pm. "Customers show interest but often leave upon learning the prices."

Saidul says he can't maintain low prices as his purchasing prices are high. "Last year, I purchased under-shirts at an average of Tk180, but now wholesale prices have surged to Tk250." 

Despite quoting prices at Tk300 taka, customers expect further discounts, making it hard to sustain profitability, he says.

Low footfall 

Compared to previous years, this year's Eid market has seen a notable decline in buyers, traders say. Traditionally, from the 10th of Ramadan onwards, shopkeepers experience a surge in Eid sales. However, this year, sales are half that of last year.

Saim Islam, who sells children's clothes on the footpath in front of Mouchak Market, shared that during the same period last year, he was making sales of about Tk40,000 per day. 

However, this year, he is only making around Tk8,000 per day. He remains hopeful that sales will improve starting from April 2nd or 3rd.

Meanwhile, upscale markets like Bashundhara witness fewer sales on the footpaths, with shopkeepers blaming this decline to online shopping's growing popularity and delayed payments from private companies.

Nihon, a businessman of Bashundhara Shopping Mall, says sales are much lower compared to previous years. He says consumers are facing hardship amidst soaring prices. 

"Last year, we had to break our fast amidst a rush of customers. Now, customers are walking away seeing prices have nearly doubled," he says.  

Nihon, however, hopes sales will improve once salaries of common people are cleared. 

Why prices too high

Mominul, a college teacher, recently visited Gauchia Market and purchased clothing for his daughtersTk4,000. 

"Similar items used to cost around Tk1,000, but now they are priced at Tk2,000 each. Shopkeepers justify the increase by citing rising purchase costs, which make them pass on the added expenses to customers," he says.

According to Mominul, high prices are pervasive across various sectors, including kitchen markets. He says the widespread impact of inflation is affecting their lives without any signs of relief.

Meanwhile, Rozina Islam, another shopper, shares her experience of purchasing clothes at higher-than-expected prices.

"Most shopkeepers advertise fixed prices, but ultimately, items are sold at a higher cost. For those of us who travel from distant areas to the market, purchasing all our clothing in a single day is essential. Business owners are well aware of this and often adjust their prices accordingly," she says. 

On the flip side, shopkeepers argue that rising electricity bills, shop rents, and other expenses compel them to incorporate these costs into the prices of clothing. 

The reality of the country's inflation becomes clearer through the insights of traders and consumers. 

The government has reported an inflation rate close to 10% over the past two years. Moreover, the prices of certain essential commodities have surged by 50%-60%, while people's incomes have seen minimal growth, if any, not exceeding 5%.