Jordanian clothing sector sees 25 percent decline in purchasing activity

Purchasing activity in Jordan's clothing and footwear sector has decreased by 25 percent compared to previous years. This decline is driven by the rise of e-commerce and reduced consumer purchasing power, according to preliminary readings from the Clothing, Footwear, and Fabric Traders Syndicate.

Hani al-Masri, the Secretary of the Syndicate, stated on Sunday, November 15, 2026, that hundreds of millions of dollars leave Jordan annually through online purchases. This outflow of capital via online shopping is creating significant economic pressure on domestic retailers who must operate within a different regulatory framework than international digital platforms.

Challenges for local merchants

Local merchants face a heavy burden of operational costs and regulatory requirements. These costs include customs duties, taxes, health specification inspections, rent, and labor costs. In contrast, Jordanian media reported that postal parcels often bypass these specific regulations, creating an uneven playing field for domestic businesses. The Syndicate has called for the implementation of equal regulatory obligations for both local merchants and postal parcels regarding taxes and inspections.

The reduction in sector activity has already resulted in tangible economic consequences for business owners. The decline in sales has led to shop closures and staff layoffs across the country. Some small shop owners have been forced to change their business models, managing their shops using only family members instead of hired employees to reduce overhead costs.

Impact of seasonal sales

The shopping calendar also contributes to periods of low economic activity in the sector. Consumer preparation for White Friday sales begins at the end of October, which causes a slump in purchases for a period of one to 1.5 months prior to the event. While the White Friday shopping season is a major event, the expected duration of the actual sales activity is only three to four days.

To address these fluctuations, the Syndicate has requested the implementation of laws or instructions to regulate the timing of sale seasons. The goal of these proposed regulations is to prevent year-round discounting, which further complicates the ability of traditional merchants to maintain stable pricing and revenue.

Hani al-Masri warned of the negative impact that postal parcels have on local markets. The Secretary of the Syndicate emphasized the need for fair competition and the regulation of sale seasons to protect the sustainability of the domestic clothing and footwear industry.

Glossary

• White Friday — White Friday was a series of avalanches on the Italian front of World War I. It is a term used to coin a disastrous day of avalanches that occurred in 1916.
• customs duties — Customs duties are a type of cost faced by local merchants. They are mentioned alongside taxes and rent as part of the operational burdens for businesses.
• regulatory framework — A regulatory framework consists of the rules and obligations that businesses must operate within. Domestic retailers must operate within a different regulatory framework than international digital platforms.
• postal parcels — Postal parcels are items delivered through postal services. They may bypass specific regulations, which can create an uneven playing field for domestic businesses.
• domestic retailers — Domestic retailers are local merchants and businesses operating within a country. They face economic pressure from the outflow of capital via online shopping.