Clothing sector witnesses 50% drop in winter season turnout

Israel’s war on Gaza contributes to the decline

market clothes
(File photo: Jordan News)
AMMAN — Many traders in the clothing sector have reported a 50 percent decrease in turnout for the current winter season compared to 2023, as per Al-Ghad. This decline is attributed to reduced purchasing power among a significant portion of Jordanian households, alongside the negative psychological impact stemming from Israel's war on Gaza.اضافة اعلان

The estimated number of clothing and shoe stores across Jordan stands at about 15,000, with a workforce of approximately 69,000, the majority of whom are Jordanians.

To stimulate the sector, workers urged the government to cease dealing with postal parcels, which have harmed the sector's internal competitiveness. Additionally, they emphasized the need for implementing incentive measures, including reducing sales tax for citizens and cutting operational costs for traders.

The President of the Garment Traders Association (GTA), Sultan Allan said, "The decline in sales movement at clothing stores has prompted many of them to organize offers and discounts to overcome the state of recession.”

Allan highlighted that the problem of postal parcels continues to present a challenge to the sector, undermining its internal competitiveness. He urged the government to end exemptions for postal parcels, particularly in light of the current economic conditions and their adverse effects on the clothing sector.

Notably, the Ministry of Finance had previously decided to decrease customs duties on postal parcels designated for personal use, valued at up to JD200, to a fixed rate of 10 percent of the value, with a minimum of JD5. Previously, a service fee of JD5 was imposed on goods valued at less than JD50, and JD10 on goods valued at less than JD100, with a maximum ceiling of JD100 for the value of each parcel.

Furthermore, an investor in the sector named Asaad Al-Qawasmi remarked, "The sector is experiencing a state of semi-rejection and evident decline in sales volume due to regional events and the prevalent negative psychological state among most citizens, which affects their purchasing inclination. Additionally, the challenging living and economic conditions for most families exacerbate the situation."

 He added, "Despite the efforts of most clothing stores to arrange offers and discounts to attract and incentivize citizens to make purchases and counteract the decline in sales, the improvement in sales remains limited and below expectations."

Meanwhile, the spokesperson for the Ministry of Industry, Trade, and Supply, Yanal Barmawi, affirmed, "There is ongoing monitoring of markets, particularly focusing on sectors that offer discounts and promotions, such as the clothing sector, to ensure the authenticity of these offers and their compliance with laws and regulations. This is essential to protect consumers from any exploitative practices."

Barmawi reiterated the ministry's commitment to upholding market stability and safeguarding consumers. He emphasized that the ministry will not hesitate to impose sanctions on any party found violating the laws and regulations governing market operations and various trade sectors.

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