There was a time when shoppers could be seen waiting outside several popular shopping malls in the capital even before the stores opened. Those days are gone.
Due to inflationary pressures, shifting consumer habits, and various other reasons, business at these shopping malls has hit a slump.
By contrast, sales at temporary sidewalk shops are booming. As people grow increasingly accustomed to a digital lifestyle, a significant portion of their shopping is now done via online pages. Under these circumstances, merchants at major shopping malls are growing anxious.
Recently, the long-standing, upscale Karnaphuli Garden City in the capital’s Shantinagar area closed down due to a lack of customers. This stately shopping mall once drew large crowds.
Merchants at the market said they first began losing customers during the construction of the nearby flyover due to traffic congestion.
Those who shifted to other shopping malls never returned.
Lately, things had deteriorated to the point where hardly anyone even came by to browse or bargain.
Traders at iconic, once-bustling shopping hubs like Eastern Plaza and Rapa Plaza report similar struggles.
Baki Billah Osmani, general secretary of the Karnaphuli Garden City Shop Owners' Co-operative Society, told Dhaka Tribune: "This didn’t happen overnight. The situation has been gradually deteriorating over the past decade. It started with the Covid-19 pandemic. After that, the rise of online retail, a lack of product diversity, and increased competition took their toll."
According to the shop owners' association, the mall had 198 shops. By the time it closed, only 17 were operational.
Highlighting the extent of the crisis, Baki Billah Osmani mentioned that their monthly operating expense exceeds Tk15 lakh.
However, over the past six to eight months, monthly collections for service charges barely reached Tk1 lakh to Tk1.5 lakh. Outstanding dues for service charges and electricity bills have climbed to nearly Tk4 crore.
As a result, the owners decided to sell off the property. Discussions are currently underway with several entities, including hospitals, corporate firms, and banks.
Malls have multiplied, formats have shifted
Traders note that the proliferation of new shopping malls has fragmented the market.
Another reason for the decline in older locations is the lack of variety in products and services.
Newer, larger malls offer diverse goods alongside multi-brand outlets, food courts, and movie theaters under one roof.
Consumers who have grown accustomed to these conveniences now prefer one-stop destinations.
Older shopping malls lack these amenities, causing them to lose their customer base.
This shift is echoed by Moghbazar resident Ziaul Islam, who said: "There are several shopping malls in this area, like Mouchak and Fortune. But if you buy a shirt from a shop here, you might not find a matching pair of pants. If I manage to buy shoes for the kids, I can't find other household necessities. These markets have no play areas or attractions for children. So now, I either shop online or go to Jamuna Future Park or Bashundhara City."
According to merchants, the rise of new shopping malls, brand outlets, and supershops in various neighborhoods has also reduced the habit of traveling across town to shop. Previously, people not only from different parts of Dhaka, but also from cities like Chittagong, Rajshahi, or Mymensingh, would flock to malls like Karnaphuli Garden City, Mouchak, or Eastern Plaza for festival shopping.
Helal Uddin, president of the Bangladesh Shop Owners' Association, told Dhaka Tribune: "One of the main reasons for the shortage of shoppers in malls is falling incomes. When people don't have money in hand, they cut back on shopping. Furthermore, more shopping malls have been built in the country than necessary, intensifying competition among store owners."
Helal places less emphasis on the impact of online shopping. In his view, if people have money, they will spend it. Without sufficient income to spend, shopping won't pick up through any medium—whether online or in person.
Online-driven businesses on the rise
Traders report that the expansion of e-commerce is transforming business models. Even as foot traffic in shopping malls dwindles, many retail stores are transitioning to online order-based operations.
Their showrooms now serve primarily as inventory warehouses and display areas for customers to inspect products.
SM Ekramul Hoque, general manager and office secretary of the E-Commerce Association of Bangladesh (e-CAB), stated: "Online shopping is growing steadily and will continue to expand in the future. Shopping at physical malls requires a lot of time. The opportunity to save that time is driving interest toward online channels."
However, e-CAB could not provide reliable statistics on the exact volume of online retail growth, making it difficult to measure the precise impact of e-commerce alone on the decline of physical shopping malls.
The e-CAB GM explained that many online businesses are not registered members of the association, making it hard to pinpoint the true size of the online market.
Nevertheless, he noted, a shift in consumer shopping habits is clearly evident.
A visit to New Market, Mouchak, and the surroundings of Jamuna Future Park reveals sparse crowds inside the malls.
However, the temporary street stalls and van-based mobile markets outside are bustling with shoppers.
These roadside setups sell a wide array of daily necessities, ranging from apparel and shoes to bags. Large numbers of buyers crowd these stalls to bargain for relatively cheaper goods.
Having learned through hard experience, Baki Billah, general secretary of the Karnaphuli Garden City Shop Owners' Co-operative Society, has advice for others: "All traders, big or small, must keep pace with the times. They need to focus on online sales and diversify their product offerings. Otherwise, survival won't be possible."
