Furniture sector on Gaza faces recession
Date
5/26/2024 4:27:11 AM
(MENAFN) As the summer season nears, a period that usually brings increased customer activity and higher sales for furniture stores, the furniture sector in Gaza is witnessing an unprecedented recession. Workers within the industry have reported a significant downturn in the local market, which they attribute to shifts in consumer behavior and spending habits driven by challenging economic conditions and reduced purchasing power. These economic difficulties have compelled families to focus their spending on essential needs, thereby significantly curtailing their expenditure on non-essential items such as furniture. Furthermore, the ongoing psychological impact of the Zionist conflict in the region has also influenced people's spending decisions.
In light of these challenges, traders in Gaza are predicting a decline in furniture prices in the local market during the current season, despite the stability in manufacturing and import costs. Nevertheless, there is optimism within the sector that market activity will improve after June. To counter the recession, traders have been organizing special offers and discounts, aiming to attract customers and meet their operational and production obligations.
Taher Khaled, the representative of the wood and furniture industries sector at the Jordan Chamber of Industry, highlighted that furniture factories and their sales exhibitions in the local market are experiencing noticeable stagnation and a decline in customer turnout. He estimated that sales in furniture factories have decreased by over 20% compared to the same period last year. Khaled pointed out that the primary reason for this decline is the weakened purchasing power of citizens, a result of the tough economic conditions faced by most families in the region.
The recession has deeply affected the furniture sector, pushing traders to implement innovative strategies to stimulate consumer spending. While there is cautious optimism for a recovery in the coming months, the current situation underscores the broader economic challenges that Gaza's local markets are confronting.
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