Retailers in Bangladesh are requesting the government to extend the operating hours of shops and malls from 1pm to 10pm instead of the current 7pm closure, citing negative impacts on business leading up to Eid-ul-Azha. In response to an energy crisis stemming from conflicts in the Middle East, a government mandate in early April enforced a 7pm closure for all retail establishments nationwide.
Industry representatives emphasize that adjusting operating hours rather than shortening them would allow for a full workday, promote energy conservation during cooler periods, and align with peak shopping times. The Fashion Entrepreneurs Association of Bangladesh (FEAB) emphasized the importance of this adjustment to capture crucial Eid sales.
Business owners highlight that the 7pm closure results in a significant loss of potential sales, ranging from 30 to 60 percent. Azharul Hoque Azad, president of FEAB and managing director of local brand Sadakalo Limited, noted the increased commercial activity preceding Eid-ul-Azha, a pivotal sales season for the domestic fashion and lifestyle sector.
Evening hours are particularly significant for shopping malls, accounting for about 60 percent of total sales, with daytime sales lagging at around 40 percent. Azad explained that customer traffic is lower during the day due to heat and busy schedules, with the majority of shopping activities concentrated in the evening hours.
Implementing the proposed revised schedule would balance energy savings with maintaining business momentum during the Eid season, as per Azad. Naimul Khan, vice chairman of Lubnan Trade Consortium Limited, expressed concerns over a 40 percent drop in sales due to restrictions affecting evening foot traffic, disrupting the supply chain and creating challenges for small factories and suppliers.
Faria Yasmin, managing director of Bata Shoe Company Bangladesh Limited, highlighted the discrepancy between the early closure and consumer behavior, as customers prefer shopping in the evening. This shift has led to operational challenges, increased energy costs during peak daytime hours, and a substantial decline in revenue.
Despite an overall 30 percent decrease in sales nationwide, fixed costs persist, intensifying financial pressure on businesses. Kamruzzaman Kamal, marketing director at PRAN-RFL Group, reported a 20 percent decline in sales, with non-food products being more severely impacted and emphasizing the significance of evening hours for sustaining business activity.
