AMMAN — Furniture sales fell by 40 to 50 percent
as a result of a biting recession, almost drying up liquidity in the once
vibrant sector, said Sharaf Al-Hayajneh, Head of Jordan Furniture Exporters and
Manufacturers Association.
اضافة اعلان
Hayajneh, who is also furniture, carpets, and
stationary sector representative at the
Jordan Chamber of Commerce, said the
”liquidity has become almost lost from the market”.
“Global increases in production inputs and raw
materials contributed to raising furniture prices by a rate ranging between 30
to 35 percent,” he said. “The decline in demand and the rise in prices
contributed to the erosion of the capital of some traders and thus the
accumulation of losses.”
He urged the government to raise the salaries of
employees to revive a flow of liquidity in the sector. “The priorities are
different now especially in view of the rise of prices of basic commodities,
most prominent of which is staple foods,” he pointed out.
He said that the decline in sales and an economic
stagnation resulting from the
COVID-19 pandemic “led to a financial distress
for many shop owners”.
“I can say that the investment in the sector became
threatened, due to the inability of many of them to continue,” he said.
He told
Jordan News that the government
allowed the import of used furniture from abroad, which dealt another blow to
the sector. “We are not against selling used furniture, but it must be at least
local, not imported”, he said.
“These goods are not subject to taxes, and therefore
their prices are not high, and that is why many resort to buying them,” he
explained.
He said furniture shops do not receive government
support. “We are ignored, unfortunately, because the government considers us a
luxury sector,” he charged.
“We hope that the government will have clear plans
to encourage the local industry and to increase the percentage of Jordanian
labor,” he said.
Leen Al-Araji, who is an interior designer at a
furniture store, said that “there is a 50-percent decline in sales because many
people are turning to upholstery furniture instead of buying new furniture,
especially since the priorities have changed.”
She indicated that she does not expect that the
situation will improve soon. “On the contrary, if things remain as they are
now, I expect many stores to go bankrupt.”
Furniture trader Mohammad Ali said that the sector
is in a “much worse condition now than we expect.” He asserted that “traders
who sell basic commodities are complaining about the difficult situation”.
“But what can we say?” he asked.
Jordan needs a radical change at the economic level,
especially since “all expectations indicate a further deterioration is coming
our way in the coming days”, Ali said.
He said that “shop owners are more affected by the
deteriorating conditions these days. Traders take their salary, whether there
is sale or not, but the shop owners are the ones who suffer the most.”
He also painted a gloomy image about the future of
the industry. “If the situation persists, shop owners will be forced to close
down, which means they will fire their employees, which will result in an
increase in
unemployment and poverty rates,” he said.
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