Fashion retailers across Bangladesh are struggling to attract shoppers despite offering discounts of up to 50 per cent on branded clothing. Persistent inflation, declining purchasing power and economic uncertainty have weakened consumer demand, leaving many outlets with unsold stock and disappointing sales.
Retailers say sales have fallen by at least 20 per cent compared with the same period last year. The slowdown is particularly concerning as seasonal discount campaigns would normally attract customers looking for affordable clothing and help businesses clear existing stock ahead of the winter season.
The recent conclusion of Durga Puja shopping has also affected demand. At the same time, a nationwide fuel crisis has prompted restrictions on shop opening hours as part of efforts to conserve electricity. Markets, shopping centres and retail outlets are now permitted to operate from 11am to 8pm, compared with the previous closing time of 10pm.
The change has reduced retailers’ access to one of their busiest trading periods. Many people, particularly office workers, traditionally visit shopping centres after finishing work. With shops closing earlier, customers have less time to browse and make purchases, putting additional pressure on sales.
Mohammad Safin, manager of Saima Fashion’s outlet in Banani, Dhaka, told The Daily Star that the difference between this year and last year was striking.
The retailer specialises in women’s clothing, including salwar kameez, sarees and lehengas, and operates several branches across the capital.
Safin said the shelves, which remain full of clothing this year, would have been almost empty at the same stage last year after the discount campaign began. He recalled that customer demand had been so strong previously that he barely had time to speak to visitors.
This year, however, the situation is very different. According to his estimate, sales have declined by around 30 per cent compared with the previous year.
He attributed the downturn to the country’s political situation, the global energy crisis resulting from international conflicts, and increases in fuel and electricity prices. These developments have created uncertainty among consumers and businesses alike, weakening customer confidence and making the retail environment more challenging.
Inflation continues to erode consumer purchasing power
Saumik Das, chief executive of Rong Bangladesh, one of the country’s leading fashion and lifestyle brands, said prolonged inflation had significantly changed consumer spending habits.
Bangladesh has been experiencing elevated inflation since around the middle of 2022. Average annual inflation has remained above 9 per cent since the 2022–23 financial year, while wage growth has been slower. Consequently, households have found it increasingly difficult to maintain their previous levels of spending.
The International Monetary Fund (IMF) has forecast average inflation of 10.9 per cent in Bangladesh in the 2026–27 financial year. It has also projected that real gross domestic product (GDP) growth will slow to 3.2 per cent.
The combination of persistent inflation and weaker economic growth is placing further pressure on household budgets. As the cost of essential goods and services rises, consumers are increasingly prioritising necessities over discretionary purchases such as branded clothing.
Das said Rong Bangladesh had not received the response to its seasonal discount campaign that it experienced last year. Customer visits have declined by approximately 15 to 20 per cent compared with the same period in 2025.
He also pointed to a noticeable change in shopping behaviour. Customers who visit stores during promotional campaigns are now purchasing only what they need rather than taking advantage of discounts to buy additional items.
In previous years, attractive price reductions often encouraged shoppers to purchase more clothing than they had originally planned. That tendency has diminished as households have become more cautious about their spending.
Uncertain weather complicates seasonal sales
Economic pressures are not the only challenge facing fashion retailers. Unusual weather conditions have also complicated decisions about seasonal stock and consumer demand.
Temperatures normally begin to fall around the beginning of November, signalling the approaching winter season and encouraging shoppers to look for warmer clothing. This year, however, the expected seasonal change has not materialised.
The prevailing weather has made it difficult for retailers to determine whether customers are more interested in summer or winter collections. As a result, businesses are uncertain about which products to display and when to introduce new seasonal clothing.
This uncertainty also creates inventory management challenges. Retailers must decide whether to continue promoting summer collections or prepare for winter demand without a clear indication of when colder weather will arrive.
Officials at fashion brand Embrar have reported weak demand for summer clothing, including T-shirts and polo shirts, despite offering discounts.
Kazi Maktum Shovon, head of sales and marketing at the company, said sales had fallen short of expectations.
He also identified the restriction on shop opening hours as a contributing factor. With outlets required to close by 8pm, retailers have fewer opportunities to attract customers during the evening.
Shovon said the recent conclusion of Durga Puja and the approaching Eid celebrations had also influenced shopping patterns. He expects sales to remain somewhat below target over the coming months.
Discounts fail to deliver expected sales
Mohammad Mukhtar Hossain, assistant manager of fashion brand Rise, described a similar experience during the pre-winter discount season.
He said the company’s sales had fallen despite promotional offers. In October last year, Rise sold clothing worth approximately Tk 2 million through its discount campaign. This year, sales during the same month dropped to around Tk 1.5 million, representing a decline of approximately 25 per cent.
Hossain attributed the reduction primarily to the difficult economic situation, particularly the rising cost of living.
He said customer footfall had fallen by almost half during the current season. Even among those visiting the outlets, only a small proportion were making purchases.
The experience reflects a wider problem across the fashion retail sector. Although discounts provide an opportunity to buy clothing at reduced prices, many consumers are reluctant to spend unless a purchase is necessary.
Sajjad Hossain, an online sales executive at lifestyle and fashion brand Cats Eye, said the company’s sales had fallen by approximately 50 per cent compared with last year.
He said uncertainty surrounding the overall economic situation was making consumers more cautious. Many were waiting to see how conditions developed before committing to additional spending, resulting in weaker demand for clothing.
New winter collections delayed at New Market
The slowdown is also visible among non-branded clothing retailers.
At Dhaka’s New Market, several shops had yet to introduce new winter collections as of last week. Some traders were instead attempting to clear existing stocks by offering discounts on older products.
For smaller retailers, unsold inventory can create additional financial pressure. Businesses need to recover the money tied up in existing stock before purchasing new collections. When sales slow, this process becomes more difficult and can disrupt preparations for the next season.
Sanaul Haque Babul, finance director of the Fashion Entrepreneurs Association of Bangladesh, said offering discounts towards the end of a season was a long-established practice in the local fashion industry.
Such promotions traditionally help retailers increase sales, clear older collections and make room for new products. They also allow consumers to purchase clothing at reduced prices.
However, Babul said the country’s political and economic conditions were weighing heavily on consumer demand this year. According to his assessment, sales across the sector had declined by approximately 20 per cent compared with the same period last year.
The latest figures and comments from retailers highlight the mounting difficulties facing Bangladesh’s fashion industry. Persistent inflation is squeezing household budgets, restricted trading hours are reducing opportunities for businesses to generate sales, and uncertain weather conditions are complicating seasonal planning.
For retailers, the challenge is no longer simply offering attractive discounts. They must contend with consumers who have become more selective and less willing to spend on non-essential products.
Unless purchasing power improves and consumer confidence strengthens, fashion businesses may continue to face weak demand despite promotional campaigns and substantial price reductions. The coming months will be particularly important for retailers as they attempt to clear existing stocks, introduce seasonal collections and regain the confidence of increasingly cautious shoppers.
