The South Asian country expects a slowdown of product orders as Western countries raise interest rates
The South Asian country expects a slowdown of clothing demand as Western countries raise interest ratesEmployees work at at a garments factory in Gazipur, Bangladesh, in this photo taken on February 7 2021. Picture: REUTERS/MOHAMMAD PONIR HOSSAINAfter recovering swiftly from the havoc caused by the Covid-19 pandemic, Bangladeshi garment manufacturers are now expecting a slowdown as sales at key customers such as Walmart are hit by a spike in inflation.
Walmart, a US bellwether for the retail sector that caters to cost-conscious shoppers, cut its full-year profit forecast on Monday and pledged to reduce prices of clothing and general merchandise more aggressively than it did in May to reduce a spring backlog. Bangladesh’s garment exports last shrank in July 2021 when Covid-19 cases were high around the world. Since then, sales have surged, growing by a multi-month high of 60% year-on-year in March this year and 41% in June, according to BGMEA data.
“Our orders could look up from October onwards for Christmas demand. But if retailers’ inventory is full, they will refrain from placing orders.”
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