The scaling back of apparel imports by American retailers and brands has caused garment led to a decline in garment exports by Bangladesh to the US over the last few months.

Data from the Office of Textiles and Apparel (OTEXA), a department under the American Commerce Department, shows, garment exports from Bangladesh to the US declined by 17.68 per cent to $1.75 billion in the January-March period of this year. In the preceding January-February period, exports dropped by 19.24 percent to $1.18 billion.

This decline in garment exports to the US has become a trend over recent months. Despite a gradual easing of inflationary pressures and higher garment exports in previous years, American retailers and brands have been importing fewer garments. Combined textiles and apparel (T&A) exports declined by 17.37 per cent to $1.81 billion during the January-March period of the current year.

While retail sales started to pick up during the festive season last year, especially around Christmas, the revival has been slow. Many garment factories in Bangladesh faced prolonged closures due to wage hike movements from September to December last year, disrupting production severely. AK Azad, Managing Director, Ha-Meem Group, highlights, apparel demand has not fully recovered amongst the low-end low-end consumers in the US impacting Bangladesh significantly. Additionally, factors such as high interest rates in US banks, ongoing gas and power crises in the garment industry, and the absence of a deep-sea port in Bangladesh continue to cause delays in shipping goods, affecting manufacturers' ability to fulfill commitments to buyers.

Despite these challenges, retail sales grew at a steady rate during March, notes Mathew Shay, President and CEO, NRF. As inflation for goods stabilises, consumers continue to benefit from a strong labor market and real wage gains, prompting retailers to keep prices low to accommodate budget-conscious consumers.