Clothing sector urges gov't response to 'sharp decline' in 2020 sales

AMMAN — The Textile and Readymade Clothes Syndicate has called on the government to take “bold decisions” to strengthen the sector in light of the difficulties it has faced since 2016, according to the syndicate's president.

“The sector’s retailers saw a shocking drop in revenues during 2020’s first 45 days, with sales falling by 70 per cent compared to the same period in 2019,” syndicate President Muneer Deyeh told the Jordan Times on Saturday.

At many stores, particularly smaller shops, sales performance “hit an all-time low record” of JD50 per day, Deyeh said.

He added that taxes and customs on clothing, in addition to power costs, sales taxes and rental costs must be reduced, stressing the clothing sector's "vital" role in the economy as an employer of more than 52,000 workers.

“This is the hardest time yet for our sector”, the president said, noting that the last drop in sales "exceeded all expectations" and poses a "great challenge" to local merchants.

“Urgent actions and measures need to be taken during the upcoming period,” Deyeh said.

Currently, there are 10,800 clothing stores around the Kingdom that "in the worst case scenario", will close their doors, Deyeh noted, adding that traders have also run out of cash flow.