News

High prices dim bright Christmas

By Mirudhula Thambiah

The bright lights and decorated shopping complexes in Colombo and other towns may give the impression that grand celebrations are underway for Christmas, just a week away, but there were mixed reactions from shoppers and traders.

Shopping malls especially in Colombo have as usual introduced several raffles, sales and discounts to attract consumers. But, most traders say that the purchasing power of the consumers appears to have reduced compared to previous seasons.

Looking for the best bargain: It’s shopping in Colombo. Pix by Susantha Liyanawatte and Hasitha Kulasekera

Clothes outlet, Cotton Collection’s, branch manager Rizan Ramzi, told the Sunday times that compared to previous years, customer growth was slow, due to the high cost of living and price increase in markets.

“Last year we also had many Arabs and Maldivian tourists shopping at our outlets, but this year, their presence is less,” he said. However, on a positive note he said they expect business to pick up within the next few days.

Assistant manager, marketing and communication of Fashion Bug, Shamalee Abeysinghe said they had a good response from customers after they introduced a promotion called ‘Scratch and Win’.
“Although at the start of the shopping season, the response was minimal, the customers have now increased. I believe Christmas shopping is much better than previous years,” she said.

Mrs. S. Fazley, an owner of a clothing shop in Pettah, told the Sunday Times that she sells imported materials especially for Christmas. “Although business is picking up, there is more competition within the market now, after the war ended. Many traders now travel from Colombo to the north and east thereby, people in those areas don’t have to travel to Colombo for special occasions like Christmas for their shopping. This has affected our business to some extent,” she said.

Commenting on import duties she said the taxes have not had an adverse affect on the garment industry. A shoe shop owner in Colombo said many customers come to his shop due to the choice of imported items. However, he said the taxes on imported items have forced him to increase his prices and customers have complained.

“In spite of the price increase there is some purchasing power among the upper middle class customers. This is good for business,” he said. On the other side customers say even though there is a wide range of choices they are unable to spend as much as they would have liked because of the high cost of living.

Calistus Fernando, a businessman from Ratmalana said that Christmas was a special time during his childhood days. He said he remembers how his parents used to take him shopping. But with the high prices of goods the festive season wasn’t the same anymore.

He further said since the price of goods are high, people have to start keeping aside some money even at the beginning of the year if they are to celebrate the season. Meanwhile customers from the north say with the end of the war they are able to carryout their shopping without hindrance.

R. Roche, a housewife from Mannar said, new shops and stalls have come up during this Christmas season. She said traders travel from Colombo to Mannar for business purposes. However she said the choices were limited while the prices were comparatively high.

“However I can now buy goods without travelling to Colombo like in previous years. That is an advantage after the end of the war,” she said. Nayanthi Abeywardene from Negombo said she had finished her Christmas shopping but she did not find anything special this time round.

Prices of the goods are high compared to previous years. I could not buy a Christmas tree for less than Rs. 8000 whereas in previous years I have bought one for about Rs. 2000. “ However, I enjoyed shopping at the shoe outlets as there were many discounts available,” she said.
Nickson Johnson from Mount Lavinia felt that the prices were reasonable.

“This time the prices of goods are affordable,” he said adding that he felt many middle class families would have been able to do some fruitful shopping.

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