AMMAN —
Jabal Al-Hussein, known for its bustling streets and markets, has seen a
prominent number of store closures and for sale signs as financial hardship bites.
Merchants that have been in the commercial district for years, some for over a
decade, are returning their keys and going home.
اضافة اعلان
“I
started renting this shop 27 years ago, and today I am offering it for sale,”
Khaled Al-Shakhshir, a shop owner in Jabal Al-Hussein, told
Jordan
News.
“Before
2010, I used to pay JD2,000 per year, but today the rent is JD6,000 annually.”
“On my
same street, 13 well-known and
old shops have closed too,” he added.
In the
last seven years, the Kingdom’s stores have seen unprecedented economic
stagnation, with a significant decline in sales and revenue.
Recently,
social media users began uploading photos and videos, drawing attention to
closed stores in Jabal Al-Hussein and across the Kingdom.
Some
commenters blamed harsh economic conditions and store owners’ inability to pay
rent as a reason, while others voiced their disappointment in the lost efforts
of the closed stores. Others said that this resulted from successive
governments haphazardly raising and imposing taxes.
Common
phenomenonRepresentative
of the
clothing sector in the Jordan Chamber of Commerce, Sultan Allan,
verified that store closures are not limited to one area but are happening in
several areas in and governorates.
“The
shops closing are old, longstanding commercial names,” he said.
He
said: “This reflects a major imbalance in the sector and a lack of seriousness
(by those in charge) to solve the problem”.
In the
next two years, the sector will completely disappear, he said. “Imports of clothing
declined by 8–25 percent between 2016 and 2022,” he said.
“Stores
are even closing in malls.”
The
price of online shoppingInvestor
Nidal Malo Al-Ain said that soon, store closures would become more apparent for
two reasons; weak purchasing power amongst citizens and the ease and
affordability of online shopping.
Vendors,
he said, consider
electronic commerce to be encouraging due to the lack of
expenses it requires. “Tax and rent amount to zero, so the loss is minimal compared
to traditional stores,” he said.
Shakhshir
explained that the growth of e-commerce could be credited to the fact that
buying clothes in the current economy “has become a luxury”.
To
allow stores to compete with e-commerce, Ain suggested imposing a commercial
register for
e-commerce merchants. He also urged the government to carry out
some “tax exemption campaigns certain times in the year to stimulate the
economy”.
Allan
agreed with Ain.
“The
government should make an urgent decision to balance e-commerce sales with
traditional sales, as well as work to address the phenomenon of street vendors
in a civilized manner,” said Allan.
“A
legal system is also needed to regulate the e-commerce market,” he added.
Ain
also suggested that the
government hold shopping festivals “similar to those
conducted globally”, where merchants are exempt from taxes for the festival's
duration. This, he said, would lead to more liquidity.
A
buildup of economic challengesSince
2013, Shakhs’ said his rent has increased by 35 percent, a challenge many
merchants have faced in the past few years.
“We are
going through an unprecedented economic recession and unfair competition with
outlet shops across the Kingdom,” he added.
“The government should make an urgent decision to balance e-commerce sales with traditional sales, as well as work to address the phenomenon of street vendors in a civilized manner,”
“There
needs to be rent price and
rent control.”
Economist
Mohamad Al-Bashir said that many sectors were also affected by the desire of
people to buy from outlet shops, which have suitable prices for the consumer.
Purchasing power is also an issue, he said.
Since
factories produce goods in large quantities that are on standby for shipping,
companies are usually left with a surplus, which they sell at very low prices,
he said.
“This
negatively affects the owners of shops”, Bashir said.
Rajab
Hasan, a shop owner trying to keep his livelihood afloat, said the
COVID-19 pandemic also affected citizens' purchasing power.
“Our
building owner is lenient with the tenants paying the rent because he
understands the difficult economic conditions.”
In the
first nine months of 2022, Jordan’s total public debt increased by 7.5 percent
compared to 2021. It rose by JD2.6 billion, reaching JD38.44 billion, according
to the General Budget Department website.
“I am
trying —really hard — not to close the shop, which has been mine and my
family’s livelihood for the past 44 years,” he said.
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