Economic strain of commoners limit spending beyond necessities
Muhid Hasan :
Shopping centres across Bangladesh are buzzing with activity ahead of Eid-ul-Fitr, as traders prepare for one of the most lucrative shopping periods of the year. Since the start of Ramadan last week, a festive shopping mood has gradually spread nationwide, with many shoppers seeking outfits and gifts for the celebration.
Stakeholders estimate that total Eid market transactions could exceed Tk 2 lakh crore this year, up from Tk 1.70 lakh crore in 2025. The expected boost is largely driven by employee salaries, bonuses, and steady remittance inflows, providing households with additional spending capacity.
Economic pressures temper expectations despite the optimism, economic experts and shop owners caution that inflation and limited liquidity may dampen consumer spending.
Meanwhile, Wage growth continues to trail inflation for 47 months straight, workers’ real incomes are steadily eroding. This has weakened purchasing power and placed additional pressure on living standards, according the he Bangladesh Bureau of Statistics (BBS) latest data.
Labour market pressures are also evident, as opportunities to move to better-paying jobs are limited, leaving many workers trapped in low-wage positions.
Md Helal Uddin, President of the Bangladesh Shop Owners’ Association, noted that people have limited disposable income as Ramadan began late in February, and the real impact on sales will only be clear next month.
Professor Mustafizur Rahman of the Centre for Policy Dialogue (CPD) stressed that the fragile economic situation and inflationary pressures are forcing households to cut back on non-essential spending.
Conversely, M Masrur Reaz, chairman of Policy Exchange Bangladesh, highlighted that increased liquidity from new monetary policies is helping stabilise the economy, potentially supporting stronger festive consumption.
New Market and Elephant Road: Following Shab-e-Barat, preparations intensified in nearly 5,000 to 7,000 shops.
Yusuf Ali Shamim, joint convener of the New Market Traders’ Association, said supplies are higher than last year and prices remain comparatively affordable, with only a 10-15 percent increase compared to last year’s 30 percent spike. Md Masum, owner of Cotton Gallery, expects sales to gain momentum as government and private-sector employees receive salaries and Eid bonuses.
Gausia and New Market areas: Traders report that footfall is gradually increasing and is expected to rise sharply as Eid approaches.
Gulistan and Bangabazar: Many traders have taken loans to stock up, reflecting high expectations. However, in Bangabazar, customer shortages persist due to the delayed rebuilding of the market after a fire three years ago, with full completion now expected in 2028. Footpath hawkers like Md Malek anticipate higher customer traffic after the 10th of Ramadan when salaries and bonuses are disbursed.
Bashundhara City Shopping Complex: Nearly 3,000 shops have completed Eid preparations, with traders like Mehedi Hasan (Rich Man) and Mizanur Rahman (Chaity Fashion) expressing optimism after a prolonged economic slowdown. Many hope this festive season will mark a turnaround in sales.
Keraniganj and Chattogram: Wholesale traders are equally hopeful. Anwar Hossain, President of the Keraniganj Garments and Shop Owners’ Cooperative Association, projects wholesale transactions could exceed Tk 7,000 crore. In Chattogram’s Terry Bazar, showrooms are stocked with quality garments imported from India, reflecting stable supply chains and improved business confidence amid political calm.
