The high inflationary environment has seen citizens facing 47% inflation year-on-year as per the Special Price Index (SPI), which tracks the prices of 51 essential items in 50 markets across 17 cities in Pakistan. The SPI indicates that clothing prices have increased by 15-25% while many retailers and market associations have reported that sales are lower than previous years because most customers are severely feeling the pinch of price hikes across the board. According to a report in DAWN's weekly Business & Finance section, Eid sales declined by around 40% this year compared to 2022. However, according to earlier news published by DAWN, Reuters and Arab News, established brands of ladies clothing have seen an increase of sales by 35-50% while unbranded stores in local markets are claiming to have experienced a significant decline. Nevertheless, a shift towards online shopping has been observed this time as customers shied away from markets and opted for deals and discounts that were available online throughout the Holy Month of Ramazan.
This disparity is attributed to the varying purchasing power of upper-middle and upper-income customers while those with lower incomes are the most vulnerable to the rising prices of essential items.
Meanwhile, the buying of men's clothing is observed to have declined as families also prioritized children's clothing above others while, in general, searching for lower-priced products to buy for this year's Eid-ul-Fitr festivities.
The higher cost of utilities, transportation, borrowing costs and rates of inputs have also resulted in tougher times for small business owners and larger firms alike which appear to have restricted their ability to invest in sellable products. Established brands seem to have had an advantage over smaller retailers because they tend to plan and source upto a year in advance. Nevertheless, on a broader scale, this Eid season is observed to have been an underwhelming occasion for both customers and businesses.
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