The government’s decision to close shops, markets and shopping centres by 8pm to conserve electricity is hitting retailers during what they say is their busiest period of the day, raising concerns over falling sales and mounting pressure on businesses.
The new schedule, which came into effect on August 12, allows shops, markets and shopping centres to remain open from 11am to 8pm.
Traders say the restriction is particularly difficult for retailers because a large share of customers arrive after office hours, when people have finished work and made their way through Dhaka’s traffic to shopping areas.
While businesses acknowledge the need to conserve electricity amid the ongoing energy crisis, they argue that cutting the evening shopping window could cause disproportionate losses without necessarily being the most efficient way to reduce power consumption.
Restaurants, hospitals, pharmacies and other essential services are exempt from the directive. Illuminated billboards must be switched off by 7pm, while decorative lighting has also been ordered to remain off.
Evening sales take the biggest hit
For many retailers, the period between evening and 9pm or 10pm is when customer traffic peaks.
A large section of working people spend most of the day at their workplaces. By the time they leave the office, navigate traffic and reach shopping malls or stores, it is already evening.
The 8pm closing time therefore leaves many potential customers with little time to shop.
Traders say sales at some businesses have already fallen sharply since the new schedule came into effect, with some reporting sales at nearly half their usual levels.
A trader at Jamuna Future Park said office-goers often spend considerable time stuck in traffic after work.
“By the time they reach the shopping mall, they do not have enough time to shop. If shops have to close at 8pm, a large section of working customers will not even get the chance to visit,” he said.
The impact is expected to be particularly significant for clothing, footwear, household goods and electronics retailers, where customers often make purchases after work.
Fixed costs remain as sales hours shrink
Retailers were already facing weaker consumer demand amid declining purchasing power and the broader energy crisis.
Many households are postponing purchases of clothes, shoes, electronics and other non-essential goods after meeting their essential expenses.
The shorter business hours could further reduce sales while leaving most operating costs unchanged.
Shop rent, employee salaries, electricity bills and transportation costs remain largely fixed regardless of how many hours a business operates.
Bangladesh Shop Owners Association President Helal Uddin said businesses were already in a fragile state because of the electricity and energy crisis.
Production is being disrupted, purchasing power is declining and sales are also being affected, he said.
Helal said closing shops by 8pm would put additional pressure on traders.
However, he said businesses were willing to cooperate with electricity-saving measures in the national interest and hoped business hours would be extended once the crisis eased.
Traders want the hours shifted, not simply cut
Some traders are not opposed to the government’s electricity-saving initiative but want the schedule changed rather than simply shortened.
They have proposed opening shops around 2pm instead of 11am and keeping them open until 10pm.
Their argument is that electricity use could be reduced during the relatively quieter part of the day while preserving the evening hours when customer traffic is highest.
“If electricity conservation is the main objective, the government should consider when electricity consumption is highest and when customer traffic is greatest when setting the schedule,” traders say.
They believe such an approach could strike a better balance between electricity conservation and keeping businesses operational.
Enforcement remains uneven
The implementation of the directive has also varied across the capital.
Several major shopping centres have closed within the stipulated time, while some brand showrooms and small shops in different areas have continued operating after 8pm.
Similarly, illuminated billboards have been switched off in some areas but remain lit in others.
This has raised questions about how the directive will be enforced uniformly.
Some traders believe the government should consult business organisations before finalising a longer-term schedule.
They argue that while conserving energy is necessary, maintaining retail activity is also important for the economy.
Is 8pm the right cut-off?
The central issue for retailers is not whether electricity should be saved, but whether closing shops at 8pm is the most effective way to do it.
Industrial production is already under pressure from gas and electricity shortages, while export-oriented businesses are concerned about orders and timely deliveries. Retailers, meanwhile, are dealing with weaker consumer demand.
Further restricting retail activity could add to the pressure on domestic trade.
Traders therefore want the government to focus on a longer-term solution to the energy crisis while ensuring that temporary conservation measures do not create disproportionate damage to businesses.
The 8pm closing rule may help reduce electricity consumption, but its economic cost will depend on how much sales, employment and consumer activity are lost in the process.
For retailers, the immediate concern is clear: the hours being cut are the very hours when customers are most likely to shop.