The Winter “Egypt Sales” did not save the market from recession

Discounts may reach in some stores to sell less than the wholesale price (Getty)

An official source at the General Federation of Chambers of Commerce in Egypt confirmed that there was no recovery in the movement of ready-to-wear sales during the annual discount season (winter sales), due to the decrease in purchasing power, in addition to the repercussions of Corona, as well as the expansion of the e-commerce system.

In exclusive statements to Al-Araby Al-Jadeed, the official clarifies, preferring not to be named, that discounts may reach some stores to sell at less than the wholesale price, in order to provide liquidity, to spend on operating expenses.

He indicates that the recession rate has exceeded 70% at the present time compared to the same period last year, which has led to many small traders leaving the market or turning to other activities.

An official in a clothing company believes that some stores will reach the discounts to the point of loss, in order to move their sales, with the aim of providing cash liquidity, in light of a stifling recession.

Muhammad Hussain, the owner of a wholesale trade office, notes that the sales movement during the sale will not exceed 20%, although the discounts may reach 50%.

He added, in private statements, that there is a state of recession hitting the clothing market, whose rates have reached 75%, as a result of the decline in purchasing power, and the repercussions of the Corona virus contributed to it, and part of the entry of Egyptians went to spend on private lessons.

And the wholesaler states that if the announced discounts exceed 20%, this means that the merchant is selling at a loss, in order to secure cash, especially those who have checks payable to companies.

Ali Al-Moslehi, Minister of Supply and Internal Trade, issued a decision to start the first liquidation period, called the “Winter Sale” for the year 2021, from Sunday, February 7, for a period of one month.

And it is required for the participating shops to announce the price of the goods offered for sale in the liquidation accompanied by a statement of the actual price at which these goods were sold during the month preceding the liquidation.

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