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Clothing sector stumbles amid weak purchasing power, low demand

By Maria Weldali - Aug 14,2022 - Last updated at Aug 14,2022

AMMAN — Decreased purchasing power parity is a key challenge facing the local clothing sector, according to representative of the Garment and Jewellery Sector at the Jordan Chamber of Commerce (JCC) Asad Qawasmi.

“Operational expenses are high, and at the same time, consumer behaviour has significantly changed due to inflation and the rising cost of living,” Qawasmi told The Jordan Times.

This summer is not turning out to be a profitable one for sector operators and business owners, he said. Consumers seem to be cutting back on buying clothes, and are mostly focused on purchasing food products, added Qawasmi.

He noted that the sector is in need of incentive programmes and stimulus packages that would positively influence commercial traffic.

Amal Bushnaq, owner of a small boutique in Rabia, said that “everything is getting more expensive, and I cannot blame people for not being interested in buying clothes at the moment”.

Bushnaq told The Jordan Times that she is unsure of her ability to pay her bills on time next month. Each day, she only sells two to three pieces.

Consumer choice is not currently centred on the clothing industry. Rather, people generally prefer to dine at restaurants or use recreational spaces during summer, according to Shahem Mohannad, a shopkeeper.

“There is a slump in sales, and we are facing pressure from multiple directions,” Mohannad added. The shopkeeper noted that nowadays, clothing retailers are no longer working for a profit, but are simply trying to stay afloat amid these challenging times.

 

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