A Weekly Thikana report published on Jan.30 revealed how the current recession has reduced the volume of sales across different business sectors, forcing many of the Bangladeshi owners to either sell or change their business in New York City.
Shops vending both luxury items and everyday necessities are fighting to stay alive. Speaking with local businesspeople from the restaurant, garment, jewelry, entertainment, traveling and real estate industries, ”Thikana” learned that the recession has noticeably affected all of them.
Many business establishments located throughout New York City, including the Queens’ neighborhoods of Jackson Heights, Ozone Park, Jamaica, and others in the Bronx and in Brooklyn, where there are large Bangladeshi communities, have already either been closed or sold. Owners expressing their apprehension said that if the situation continues to get worse, more businesses will have to declare bankruptcy. Some have already changed their businesses to avoid closure, “Thikana” said.
Business owners said that customers have cut back on their purchases as they face the severity of the economic recession. Those who previously would buy goods worth $200 to $300 at a time are nowhere to be seen. Price hikes, job losses and the fear of unemployment have caused consumers to curtail their spending. They buy only what is extremely necessary for their survival.
Talking to “Thikana”, Syed Mannan, owner of the Mannan Supermarket, said his business has felt the impact of the recession that is currently sweeping over America. "We are not getting good business on a regular basis. We run a business selling daily essentials, and still sales have been bad," he said, adding that his business has declined by 10 to15 percent.
Mr. Nazmul Huda, president of the National Anti Tuberculosis Association of Bangladesh (NATAB) and owner of Worldwide Travels, informed “Thikana” that business has been seriously affected by downturn in the economy. While many Bangladeshis have already lost their jobs, he explained, those who haven’t are worried about losing them. Under such uncertain circumstances they do not dare visit Bangladesh. Mr. Huda said that traditionally this time of the year is peak season for travel. People used to be able to buy their tickets in advance to reserve seats at a reduced rate. But this year ticket sales have drastically decreased. A family typically spends about $20,000, including air tickets and other related expenditures, when they plan a trip to Bangladesh. No one is ready to spend that kind of money right now, he said, adding that the recession has caused a 20 to 30 percent drop in business.
Mr. Mizanur Rahman, the proprietor of the Dhaka Club, said the recession has caused his business to drop by 50 percent. People aren’t throwing parties the way they the used to and when they do, many clients fail to pay their entire bill, Mr. Rahman commented.
Mohammad M. Rahman, a Jackson Heights-based garments trader, said that the situation has been very unfortunate for his business. He said that 75 percent of the garment traders have been greatly affected by the recession, with 25 percent of that struggling to survive.
Garment sales have seriously declined due to the reduction in the number of people having weddings and birthday parties.
"It will not be possible to survive if this situation goes on," Mr. Rahman said.
Mr. Mahsion Noni, who works at Hatbazar in Jackson Heights, said that in the past there were plenty of customers who purchased goods worth $200 to $300 at a time. Now customers spend no more than $70 or $80.
Mr. Noni said that the majority of his customers are taxicab drivers and restaurant workers, many of whom are facing layoffs and reduced hours. Naturally, his business has been affected negatively, he said.
Mr. S. M. Rahmat Ullah, who owns Rupali Travels, declared that his business has gone down by 50 percent. "No business now is comparable to how it was earlier," he said. “People no longer have money. They are finding it difficult even to lead their normal lives,” he said. His own business has gone from having four employees to just two.
"In 2007, I had $5 million worth of business, but in 2008 it was only $3 million. I fear that this year business will bring in even less than in 2008,” Mr. Rahmat said.
Perhaps the worst hit by the economic meltdown is the real estate sector. Banks that previously counted on this industry to generate revenue can no longer do so. For Mr. Kashem, his real estate business is down by as much as 50 percent in some areas.
