Retailers pin hope on ‘White Friday’ to revive sales: Jordan

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AMMAN — Bracing for the busiest shopping day of the year, the “White Friday”, retailers are already luring customers with discounts and special offers.

Arab countries prefer to describe the last Friday in November as “White Friday”, as opposed to “Black Friday”.

The Jordan Times spoke with a number of stakeholders who noted that this day offers “a beacon of hope” after a long period of slumping sales due to the difficult economic situation.

Vice-president of the general syndicate for electronics traders Fawwaz Qattan said that there has been a notable increase in sales ahead of the “White Friday”.

Discounts in the electronics sector, which range between 30 and 40 per cent, started at the beginning of this month and will continue until November 30, according to Qattan.

“This will reduce crowding and allow customers to take their time when deciding what they need to buy,” he told The Jordan Times.

Sales are “very low” during the rest of year because of the the decreased purchasing power and the economic stagnation affecting most sectors around the world, he added, expressing hope that the discounts season will revive the sector.

The discounts vary depending on the dates and costs of import, as the past period witnessed “a rapid fluctuation in the shipping costs and the prices of commodities in countries of origin,” said Qattan.

President of the General Association for Cosmetics and Accessories Traders Mahmoud Al Jalis said that the “White Friday” offers the sector a “small window of hope” to revive its sales.

The discount rates, which vary between one shop and the other, are likely to exceed 50 per cent, according to Jalis.

However, “one day can’t fix the damage done by three years of stagnation,” he said, predicting a 10 per cent increase in sales during the sales period.

Jalis also noted that sales in the sector dropped by 70 per cent since the outbreak of the COVID-19 pandemic.

“The repercussions of the pandemic are still felt by retailers today. They’re using most of their profit to pay off mounting debts,” he told The Jordan Times.

The sector is struggling with liquidity shortages, a stagnant market, high interest rates on bank loans, piled up bills and installment payments and a low purchasing power, he added.

The cosmetics and accessories sectors are made up of around 3,800 shops distributed around the Kingdom, employing roughly 20,000 people, according to Jalis.

President of the Textile, Readymade Clothes and Footwear Syndicate Sultan Allan noted that discounts will vary depending on “the average profit margin and merchandise availability of each individual shop”.

He also said that while some retailers are offering discounts before, during and after the “White Friday”, most shops will be limiting their discounts to one day because a long period of reduced prices, especially at the beginning of the winter season, would be “very costly”.

“The syndicate demands organising shopping festivals and establishing discount periods in-between seasons to benefit both consumers and merchants,” he added.

Allan also noted the need to organise e-commerce and address the issue of random street vendors in commercial areas.

Moreover, the 16 per cent sales tax on clothes and footwear is extremely high, especially considering “the limited income and decreasing purchasing power of Jordanians”, he said.

Around 13,800 facilities currently operate in the sector, which employees roughly 68,000 people, according to Allan.

Allan and Jalis stakeholders noted that the market is witnessing a notable decrease in sales ahead of the “White Friday” sales as most consumers have postponed their shopping plans to benefit from discounts.