Traders dejected as high inflation dampens Eid sales

• Traders slam PTI for announcing political rallies on eve of Eid.
• Trade leader says Eid sales in Karachi hardly at Rs25 billion.
• Traders say high inflation rate dampened sales this Eid.

KARACHI: Despite the fact that markets across Karachi ran at full throttle this Ramadan, as they tried to recover from the great slump over the preceding two years caused by the deadly COVID-19 pandemic, traders seem dejected about Eid-ul-Fitr sales because of the high rate of inflation.

Traders also slammed the PTI for announcing political rallies throughout the country on the eve of Eid because these gatherings often result in traffic jams and parking issues, which in turn can cripple Eid business during what is considered the "peak time".

All Karachi Tajir Ittehad Chairman Atiq Mir said that Eid sales in the city this year would hardly be able to cross the mark of Rs25 billion.

He estimated that last year when the pandemic was still a major issue and a partial lockdown was in place, Eid business had crossed the Rs30 billion mark.

And the year before that, when the virus cases were at their peak, traders barely made Rs10 billion, arguably the lowest Eid sales in Karachi’s history.

'Operating in loss'

Mir said that Karachi has witnessed the worst Eid sales for three consecutive years. “We haven’t seen such a sharp decline in Eid business in decades.”

He pointed out that even last year, when the pandemic was still raging, Eid sales had been better, but this year, due to the “highest-ever” rate of inflation, business has been badly crippled.

“Tariq Road is considered the city’s basic shopping point, but there’s no rush there,” he said, explaining that shopkeepers have not stocked up clothes, shoes, or jewellery because Eid-related items are not selling as well as expected.

He estimated that out of every 100 people in the market, only 40 buy something. “The basic reason for this is a huge decline in people's purchasing power.”

He pointed out that the prices of kitchen items have been skyrocketing, and since every household wants to get their kitchen items first, Eid shopping is pushed down their priority list.

On the other hand, he remarked, traders do not have any money left to pay salaries to their employees. “They are operating in loss. Sellers or buyers — everyone is in trouble.”

Electronics dealers behind on target

Karachi Electronics Dealers Association President Rizwan Irfan said they have done only 40% of their expected Eid business this year. “It should have met at least 60 or 70% of our expectations.”

The reason for this, he explains, is the high rate of US dollar. He said that the price of a normal Rs40,000 air conditioner has jumped to Rs70,000.

“Who can buy such expensive electronic items?” he wonders. He points out that people these days cannot even afford essential commodities, and “electronic items are down on the priority list”.

Irfan mentions the trend of getting married in Karachi right after Eid, which usually means buying home appliances. However, he laments, even such households are not buying refrigerators, televisions or air conditioners, mainly because of inflation and the high dollar rates.

'Prices of garments have more than doubled'

Raheel Paracha, president of the Victoria Welfare Association of the Victoria Shopping Centre (Zainab Market), said the Eid business at their market is better this year than last year. However, he laments, that they have seen the lowest Eid sales, other than the two previous Eids during the pandemic.

He explains that since the price of the dollar has shot up, a normal shirt selling for Rs1,000 last year now costs at least Rs2,200. “The prices of garments have more than doubled. How can there be no effect on Eid purchases?”

Cloth Merchant Association President Ahmed Chinoy had high hopes for this Eid. Unfortunately, he said, the kind of rush they had been anticipating in the markets after two years of the pandemic and lockdown restrictions was just not there.

“During the last three days of Ramadan, markets are usually crammed full of buyers. This time there’s hardly any rush,” he laments. When asked about the amount of business done this year, he said they have made around Rs1 billion, the same as last year.

He explains that a drive-through Tariq Road will prove his point. It would usually take an hour to cross the busiest shopping street of the city during the last 10 days of Ramazan. “Last night I swiftly drove through Tariq Road in my car in 20 minutes. There was no rush of buyers.”

Chinoy said that the reason for this is the rise in the prices of goods, while at the same time, there has been no increase in the purchasing power of the people.

Regarding the prices of clothes, he said that a Rs2,000 suit now costs Rs3,000 or Rs3,500. He asks how an ordinary citizen can buy anything for Eid. “These have been very bad years for traders as well as consumers.”

Traders unhappy with PTI

Chinoy also criticised the PTI for holding political rallies on chand raat. He said traders are operating without any lockdown restrictions after two years of the pandemic, so political parties should not cripple their businesses with their protests.

“Political rallies cause roadblocks, and traders suffer.”

He stressed that the PTI should think before holding such rallies on chand raat, because Eid-ul-Fitr is a religious festival, so people should not suffer because of political activities.

Originally published in The News