Retailing in Bangladesh 2021

Retailing in Bangladesh
Euromonitor International
May 2022
RETAILING IN BANGLADESH Passport i
LIST OF CONTENTS AND TABLES

EXECUTIVE SUMMARY .............................................................................................................. 1
Retailing in 2021: The big picture ............................................................................................. 1
Country background ................................................................................................................. 2
Socioeconomic trends .............................................................................................................. 4
Logistics/ infrastructure ............................................................................................................. 7
Informal retailing ..................................................................................................................... 10
What next for retailing? ........................................................................................................... 11
Chart 1 Retailing: Traditional Non-Grocery Retailer ................................................ 12
Chart 2 Retailing: Traditional Grocery Retailer........................................................ 13
Chart 3 Retailing: Apparel and Footwear Specialist Retailer .................................. 14
Chart 4 Retailing: Apparel and Footwear Specialist Retailer .................................. 15
MARKET DATA .......................................................................................................................... 15
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2016-2021 ........... 15
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth
2016-2021 .................................................................................................. 16
Table 3 Sales in Store-Based Retailing by Channel: Value 2016-2021 .................. 16
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2016-
2021 ........................................................................................................... 16
Table 5 Store-Based Retailing Outlets by Channel: Units 2016-2021 ..................... 17
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2016-2021 ...... 17
Table 7 Sales in Non-Store Retailing by Channel: Value 2016-2021 ...................... 17
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2016-2021 ..... 17
Table 9 Retailing GBO Company Shares: % Value 2017-2021 .............................. 18
Table 10 Retailing GBN Brand Shares: % Value 2018-2021 .................................... 18
Table 11 Store-based Retailing GBO Company Shares: % Value 2017-2021 .......... 18
Table 12 Store-based Retailing GBN Brand Shares: % Value 2018-2021 ................ 18
Table 13 Store-based Retailing LBN Brand Shares: Outlets 2018-2021................... 19
Table 14 Forecast Sales in Retailing by Store-based vs Non-Store: Value
2021-2026 .................................................................................................. 19
Table 15 Forecast Sales in Retailing by Store-based vs Non-Store: % Value
Growth 2021-2026 ..................................................................................... 19
Table 16 Forecast Sales in Store-Based Retailing by Channel: Value 2021-
2026 ........................................................................................................... 19
Table 17 Forecast Sales in Store-Based Retailing by Channel: % Value Growth
2021-2026 .................................................................................................. 20
Table 18 Forecast Store-Based Retailing Outlets by Channel: Units 2021-2026 ...... 20
Table 19 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2021-2026 .................................................................................................. 20
Table 20 Forecast Sales in Non-Store Retailing by Channel: Value 2021-2026 ....... 21
Table 21 Forecast Sales in Non-Store Retailing by Channel: % Value Growth
2021-2026 .................................................................................................. 21
DISCLAIMER ............................................................................................................................. 21
MODERN GROCERY RETAILERS ........................................................................................... 22
2021 Developments ................................................................................................................ 22
Prospects and Opportunities .................................................................................................. 24
Channel Data .......................................................................................................................... 25
© Euromonitor International
RETAILING IN BANGLADESH Passport ii
Table 22 Modern Grocery Retailers: Value Sales, Outlets and Selling Space
2016-2021 .................................................................................................. 25
Table 23 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: %
Growth 2016-2021 ..................................................................................... 25
Table 24 Sales in Modern Grocery Retailers by Channel: Value 2016-2021 ............ 26
Table 25 Sales in Modern Grocery Retailers by Channel: % Value Growth
2016-2021 .................................................................................................. 26
Table 26 Modern Grocery Retailers Outlets by Channel: Units 2016-2021 ............... 26
Table 27 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2016-
2021 ........................................................................................................... 26
Table 28 Modern Grocery Retailers GBO Company Shares: % Value 2017-
2021 ........................................................................................................... 27
Table 29 Modern Grocery Retailers GBN Brand Shares: % Value 2018-2021 ......... 27
Table 30 Modern Grocery Retailers LBN Brand Shares: Outlets 2018-2021 ............ 27
Table 31 Modern Grocery Retailers LBN Brand Shares: Selling Space 2018-
2021 ........................................................................................................... 27
Table 32 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space 2021-2026 ....................................................................................... 28
Table 33 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2021-2026 ..................................................................... 28
Table 34 Forecast Sales in Modern Grocery Retailers by Channel: Value 2021-
2026 ........................................................................................................... 28
Table 35 Forecast Sales in Modern Grocery Retailers by Channel: % Value
Growth 2021-2026 ..................................................................................... 28
Table 36 Forecast Modern Grocery Retailers Outlets by Channel: Units 2021-
2026 ........................................................................................................... 29
Table 37 Forecast Modern Grocery Retailers Outlets by Channel: % Unit
Growth 2021-2026 ..................................................................................... 29
TRADITIONAL GROCERY RETAILERS .................................................................................... 29
2021 Developments ................................................................................................................ 29
Channel Data .......................................................................................................................... 32
Table 38 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space
2016-2021 .................................................................................................. 32
Table 39 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space:
% Growth 2016-2021 ................................................................................. 33
Table 40 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and
Selling Space 2021-2026 ........................................................................... 33
Table 41 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and
Selling Space: % Growth 2021-2026 ......................................................... 33
NON-GROCERY SPECIALISTS ................................................................................................ 33
2021 Developments ................................................................................................................ 33
Channel Data .......................................................................................................................... 37
Table 42 Non-Grocery Specialists: Value Sales, Outlets and Selling Space
2016-2021 .................................................................................................. 37
Table 43 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: %
Growth 2016-2021 ..................................................................................... 37
Table 44 Sales in Non-Grocery Specialists by Channel: Value 2016-2021 ............... 38
RETAILING IN BANGLADESH Passport iii
Table 45 Sales in Non-Grocery Specialists by Channel: % Value Growth 2016-

2021 ........................................................................................................... 38
Table 46 Non-Grocery Specialists Outlets by Channel: Units 2016-2021 ................. 38
Table 47 Non-Grocery Specialists GBO Company Shares: % Value 2017-2021 ...... 39
Table 48 Non-Grocery Specialists GBN Brand Shares: % Value 2018-2021 ............ 39
Table 49 Non-Grocery Specialists LBN Brand Shares: Outlets 2018-2021 .............. 39
Table 50 Non-Grocery Specialists LBN Brand Shares: Selling Space 2018-
2021 ........................................................................................................... 40
Table 51 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling
Space 2021-2026 ....................................................................................... 40
Table 52 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2021-2026 ..................................................................... 40
Table 53 Forecast Sales in Non-Grocery Specialists by Channel: Value 2021-
2026 ........................................................................................................... 40
Table 54 Forecast Sales in Non-Grocery Specialists by Channel: % Value
Growth 2021-2026 ..................................................................................... 41
Table 55 Forecast Non-Grocery Specialists Outlets by Channel: Units 2021-
2026 ........................................................................................................... 41
Table 56 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth
2021-2026 .................................................................................................. 41
MIXED RETAILERS ................................................................................................................... 42
2021 Developments ................................................................................................................ 42
Channel Data .......................................................................................................................... 44
Table 57 Mixed Retailers: Value Sales, Outlets and Selling Space 2016-2021 ........ 44
Table 58 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth
2016-2021 .................................................................................................. 44
Table 59 Sales in Mixed Retailers by Channel: Value 2016-2021............................. 45
Table 60 Sales in Mixed Retailers by Channel: % Value Growth 2016-2021 ............ 45
Table 61 Mixed Retailers Outlets by Channel: Units 2016-2021 ............................... 45
Table 62 Mixed Retailers Outlets by Channel: % Unit Growth 2016-2021 ................ 45
Table 63 Mixed Retailers GBO Company Shares: % Value 2017-2021.................... 46
Table 64 Mixed Retailers GBN Brand Shares: % Value 2018-2021.......................... 46
Table 65 Mixed Retailers LBN Brand Shares: Outlets 2018-2021 ............................ 46
Table 66 Mixed Retailers LBN Brand Shares: Selling Space 2018-2021 .................. 46
Table 67 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space
2021-2026 .................................................................................................. 47
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2021-2026 ..................................................................................... 47
Table 69 Forecast Sales in Mixed Retailers by Channel: Value 2021-2026 .............. 47
Table 70 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2021-
2026 ........................................................................................................... 47
Table 71 Forecast Mixed Retailers Outlets by Channel: Units 2021-2026 ................ 48
Table 72 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2021-
2026 ........................................................................................................... 48
DIRECT SELLING ...................................................................................................................... 48
2021 Developments ................................................................................................................ 48
E-COMMERCE (GOODS) .......................................................................................................... 50
RETAILING IN BANGLADESH Passport iv
2021 Developments ................................................................................................................ 50

Channel Data .......................................................................................................................... 53
Table 73 Sales in E-Commerce (Goods): Value 2016-2021 ..................................... 53
Table 74 Sales in E-Commerce (Goods): % Value Growth 2016-2021..................... 53
Table 75 Forecast Sales in E-Commerce (Goods): Value 2021-2026 ...................... 53
Table 76 Forecast Sales in E-Commerce (Goods): % Value Growth 2021-2026 ...... 53
HOMESHOPPING ...................................................................................................................... 54
2021 Developments ................................................................................................................ 54
VENDING ................................................................................................................................... 54
2021 Developments ................................................................................................................ 54
RETAILING IN BANGLADESH Passport 1
RETAILING IN BANGLADESH
EXECUTIVE SUMMARY
The COVID-19 pandemic presented challenges and opportunities to retailing in 2020 and
2021. Consumer spending was focused on the daily essentials, while consumers increasingly
favoured e-commerce and modern retailing. However, traditional grocery retailers benefited
from the proximity of stores to consumers, while much of the boom in e-commerce has centred
on informal traders using social media to reach consumers. More widely, informality continues to
define most retailing activity.
Retailing in 2021: The big picture

▪ The impact of the COVID-19 pandemic led to the emergence of new behaviours among both
retailers and consumers in Bangladesh. Was largely positive in terms of sales, with
impressive growth rate recorded across the retailing industry during both 2020 and 2021.
However, rising demand contributed to price inflation as the cost of living continues to
increase. In addition, some shortages were seen in the supply of essential grocery items
during 2020 as the COVID-19 pandemic interrupted supply chains at a time when many
consumers were looking to stop while non-perishable essential products. While mixed
retailers and non-grocery specialists faced substantial pressure on demand during quarantine
lockdowns, resulting in many of the retail businesses operating in these categories facing
severe albeit temporary financial pressure, demand for retailers and non-grocery specialists
recovered strongly once social distancing restrictions were eventually loosened during 2021.
▪ During the particularly strict 4-month quarantine lockdown that formed a key plank of the
government of Bangladesh’s professional response to the COVID-19 pandemic, all of the
country’s non-grocery retailers were forced to remain closed. This was seen as a crucial
measure for controlling the spread of the COVID-19 virus among the local population and
resulted in huge pressure coming on the ability of local non-grocery retailers to generate
revenues during the year.
▪ A shift towards e-commerce and, in particular, s-commerce was registered in Bangladesh in
the wake of the COVID-19 pandemic. However, the potential of e-commerce to emerge as a
major mainstream retail channel in Bangladesh has been severely compromised by an online
fraud epidemic, which has substantially eroded consumer trust in placing online orders.
Indeed, almost 11.5% of e-commerce consumers in Bangladesh were the victims of fraud
during 2020. However, the government’s robust response to the online fraud crisis,
particularly the plantation of its new e-commerce business policy, has been very positive in
terms of sending a clear message to both retailers and consumers that the threat of online
fraud is taken very seriously, with the aim of facilitating the development of e-commerce in the
country.
▪ Modern grocery retailers registered very strong growth in terms of both selling space and
sites/outlets in 2020, with further positive growth recorded in these measures during 2021 as
well. A similarly positive performance was recorded in traditional grocery retailers, with
particularly strong growth recorded in this category during 2021. This is a clear indication that
both chained and independent grocery retailers are benefiting from rising spending and an
expansion of the core consumer base for formal retailing.
▪ Non-grocery specialist also registered robust growth in both outlet numbers and selling space
during both 2020 and 2021, with many consumers increasingly interested in shopping in
stores that are located in close proximity to their home during the COVID-19 pandemic.
However, a less impressive performance was registered in the next retailers during the year
despite urban consumers increasingly keen on shopping for a diverse range of different items
under one roof.
▪ More broadly, major changes are being seen in the shopping behaviours of consumers in
Bangladesh and this is largely in response to rising prices on the one hand and the impact of
the increasingly hectic lifestyles that affluent urban professionals typically lead on the other.
This has led to a polarisation of demand trends, with less affluent consumers increasingly
focused on informal retailing, open markets and other traditional channels as these generally
represent the most cost effective way to obtain the essentials of daily life. At the other end of
the scale, modern grocery retailers are increasingly attractive to more affluent consumers on
the basis of the convenience that they represent and the wide range of products that they
offer, despite their higher prices. As consumers become increasingly affluent and more
demanding, many of Bangladesh’s traditional retailers have taken steps to modernise their
outlets and improve their merchandise in an effort to remain relevant to their core consumer
bases as well as to offer a more pleasant and attractive shopping environment.
Country background
▪ The vast majority of Bangladeshi consumers, a proportion estimated as high as 95% by some
sources, remain heavily dependent on traditional retailers for their daily essentials. However,
many consumers favoured modern grocery retailers and/or e-commerce during the quarantine
lockdowns that were instigated in response to the COVID-19 pandemic during 2020 and
2021. However, once social distancing restrictions were loosened, consumers returned to
traditional retailers once again. One important difference between Bangladesh’s modern and
traditional retailers is that those operating in traditional retailing channels generally pay little
attention to customer loyalty, beyond establishing and maintaining personal relationships with
their regular customers, while modern grocery retailers are generally involved in well-
organised efforts to retain customers.
▪ Many Bangladesh people shop for essentials and perishable items on a daily basis.
Furthermore, many items are generally purchased in small quantities and this is particularly
common among rural communities and low-income consumers. The reason for this is that
average income levels remain low, while the practice of paying workers on a daily basis is
widespread.
▪ Most of the country’s rural consumers have access only to informal retailers. Informal retailing
is present throughout the country and is as popular in urban areas as it is in rural parts of the
country. However, many consumers shop monthly for non-perishable items such as rice and
oils and fats, buying in bulk as and when they can afford to. Fresh produce is usually bought
daily or on every other day.
▪ Recent years have seen major changes in the shopping habits of more affluent urban
consumers. Among the trends underpinning these changes are the increasingly hectic
lifestyles of people living in major urban areas, which means that they must shop less
frequently. In addition, the proliferation of refrigeration appliances in the homes of affluent
urban-dwellers means that they are able to store fresh food for longer periods of time. This
means that consumers are becoming more interested in shopping weekly, with the weekend
(Friday and Saturday) generally the most popular time to go on a big weekly shopping trip.
▪ Friday is the most popular day for buying non-grocery items such as apparel and footwear
and consumer electronics as this is traditionally a day of rest and consumers have more time
to browse. Shopping centres are common in large cities such as Dhaka and Chittagong and
they are located in both central areas and in suburban districts. In smaller towns and cities
meanwhile, the majority travel to the town centre or a larger city when they want to go
shopping.
▪ Traditional markets remain the default shopping channel for the majority of Bangladeshis and
few consumers shop regularly in modern stores. Most traditional markets are run by the local
authority of the town or city in which the market is located. However, economic development
and the expansion of modern retailing mean that modern channels are attracting growing
numbers of people, particularly in urban and suburban areas of the country. Nevertheless,
demand for modern retailing is limited mainly to mid- and high-income consumers, with less
affluent people viewing them generally as unaffordable.
▪ There is a widespread perception that traditional grocery retailers and informal retailers offer
lower prices and this is the main reason for their popularity among consumers of all income
groups. Some estimates have put the share of informal retailing at 70% of all retail sales in
the country. Street vendors, markets and traditional grocery retailers offer consumers the
option to haggle over prices, something that modern grocery retailers do not offer. However,
strong sales growth is being seen in modern grocery retailers due to the expansion of
Bangladesh’s urban middle class, who view modern retailing as synonymous with high quality
and the convenience of one-stop shopping.
▪ One factor that negatively impacts the operations of modern retailers is that they are liable to
pay higher taxes than traditional and informal retailers. Specifically, products sold in modern
retailers attract a higher rate of VAT. According to Bangladesh’s finance minister, the VAT Act
2012 will be implemented during the current fiscal year (2019-2020). This means that local
traders will have to pay 5% VAT, while larger businesses will be required to pay 7.5% or 10%,
depending on the scale of their operations. This is likely to make products sold via modern
retailers and chained retailers of all types more expensive and this will inevitably influence the
purchasing decisions of consumers. Although the government has announced its plans to
implement this law numerous times before, protests and objections from various parties have
led them to delay the implementation of the law, as well as infrastructure gaps and corruption
among government officials.
▪ Another factor that contributes to the higher prices charged in modern retail outlets is that the
cost of doing business is increasing for large companies in Bangladesh, especially in large
cities such as Dhaka and Chittagong. Commercial rents have been increasing significantly in
recent years, while wages are also rising, spurred by the rising cost of living.
▪ The majority of Bangladeshis do most of their shopping locally, usually at the open market
that is closest to their home. However, it is becoming increasingly common among urban
consumers to travel into the centre of the city to go shopping, with shopping centres among
the main attractions. Many shopping centres have additional amenities such as fitness
centres, cinemas, food halls and children's play areas, making them popular leisure as well as
shopping destinations. The development of out-of-town shopping centres remains at an
incipient stage, despite the presence of notable facilities such as the 150,000 sq m Jamuna
Future Park shopping centre, located in Dhaka’s affluent outer suburbs. The very high
population density in Dhaka and other major urban areas presents challenges to the
developers of large shopping centres and large standalone retail outlets, with most retail
outlets quite small as a result.
▪ Most of the country’s modern grocery retailers are open seven days per week and normal
daily opening hours are 09.00hrs-22.00hrs. In some areas, it is common for retail outlets to
open one hour earlier and/or close one hour later than these standard opening hours.
▪ Traditional grocery retailers are also usually open seven days per week, although their
opening hours tend to be longer, from 06.00 until 23.00hrs. Non-grocery retailers are
generally open seven days per week from 10.00 until 21.00hrs, while retailers operating in
shopping centres are beholden to the opening hours of the shopping centre in which are
located.
▪ There is not any legislation pertaining to the opening and closing times for retail outlets in
Bangladesh. However, most formal non-grocery retailers located in Dhaka follow the policy of
Dhaka City Corporation. This dictates that they remain closed for one day each week, usually
a Tuesday, Wednesday or Thursday. Modern grocery retailers located in Dhaka are however
permitted to remain open every day.
▪ Ramadan is a particularly popular time for shopping. In addition, Eid, the Hindu festivals
Durga Puja and Pahela Baishak and the Bengali new year, which falls on 14 April, tend to see
spikes in retail purchases. An estimated 70% of sales of non-grocery products such as
apparel and footwear, beauty and personal care, consumer appliances, consumer electronics
and home décor are completed in the weeks immediately preceding these events, while an
increase of up to 30% is also seen in sales of grocery items. Most retailers offer special
discounts in the run up to Eid, Ramadan and Durga Puja in an effort to attract consumers.
▪ In addition, many non-grocery retailers in channels such as apparel and footwear specialist
retailers and jewellery and watch specialist retailers update their merchandise in preparation
for the increased interest in shopping during these festivals. The products sold by these
retailers as well as electronics and appliance specialist retailers and homewares and home
furnishing stores are among the most popular Eid gifts. Demand for such items is increasing
due to rising discretionary spending amidst an improving economic situation.
▪ Informal retailers also receive a boost to their sales during the abovementioned festival
shopping seasons, with increases generally seen in the numbers of informal roadside sellers
playing a trade at these times of year. The emerging channel of e-commerce is also
experiencing rapid increases in sales in the weeks preceding the abovementioned festivals
and this applies equally to consumer-to-consumer and social media-based informal online
sales as it does to formal e-commerce websites. Indeed, Facebook is emerging as a
particularly popular online channel for informal retailing, with many consumers paying cash on
delivery for their online orders.
▪ Manufacturers and formal retailers generally step up their promotions in the run-up to festival
seasons, with mass media advertising and online marketing campaigns becoming
increasingly popular. However, more traditional methods such as price discounting and the
offer of limited-edition products are more commonly used to attract customers.
Socioeconomic trends
▪ The COVID-19 pandemic interrupted commercial activity in key sectors of Bangladesh’s
economy during 2020 and, to a lesser extent, 2021. This put pressure on consumer spending
to some extent, resulting in spending increasing at a slower rate than what was seen earlier in
the review period. In addition to reducing overall spending, many consumers were more
interested in buying the most cost-effective products possible, while more economical retail
channels were also favoured. The majority of less affluent middle-income and low-income
people resorted to the retail channels with the strongest reputations for offering value for
money, with obtaining the best bargains the main priority for huge numbers of consumers.
More affluent middle-income and high-income consumers meanwhile continued to shop in
modern grocery retailers outlets as well as remaining loyal to their favourite non-grocery
specialists, most of whom operates in the modern retailing sector.
▪ The robust and rapid recovery of Bangladesh’s economy from the negative impact of the
COVID-19 pandemic and the digitalisation of commerce in the country have supported a
robust and rapid recovery for the country’s retailing industry as well. According to World Bank
data, economic growth in Bangladesh for 2021 was as high as 6%, with 7% growth expected
for 2022. The lifting of quarantine and social distancing restrictions in August 2021 and the
reopening of all government institutions during September 2021 proved to be the key turning
points for the country’s economy and retailing industry.
▪ Some stockpiling and panic buying were seen among the population of Bangladesh during the
early stages of the COVID-19 pandemic during 2020, although this activity was confined
mainly to more affluent middle-income consumers. In particular, stockpiling covered mainly
affordable non-perishables products, with consumers tending to buy products in bulk.
▪ While few modern retailers in Bangladesh offer their customers access to official lines of
consumer credit, it uncommon for traditional retailers to offer informal credit to their regular
customers. This practice increasing importance during the early stages of the COVID-19
pandemic as many low-income consumers struggled to pay for their essential purchases due
to the interruptions that the COVID-19 pandemic caused to commercial activity in key sectors,
which led to pressure coming on household incomes, especially for less affluent consumer
segments.
▪ Bangladesh is a fairly large country with a substantial population, which stood at 166.3 million
at the end of the review period. In addition, Bangladesh’s population is also young, with a
median age of just 28 in 2021. Although much of the population remains within the low-
income group, the country’s urban middle-class is expanding at a rapid pace. Bangladesh’s
middle class, especially young mid-income consumers, are the key consumer group for
pushing growth in modern retailing. Consumers within this group tend to be attracted to the
clean and smart interiors of modern retail outlets. In addition, they favour the high-quality
service and the wide range of products on offer. Furthermore, the prices of the goods on offer
in modern retailers have fixed prices, obviating the need to haggle, which is still very common
in traditional and informal retail settings. Many modern retailers also offer credit to their
customers, while credit card penetration is rising due to strong uptake of these consumer
finance products among mid- and high-income consumers. This is also boosting the spending
power of young urban professionals.
▪ 15% of the population of Bangladesh still live below the international poverty line of USD3.10
per day. However, the prevalence of dire poverty is diminishing, especially in major urban
areas. The ongoing boom being experienced in the country's garment manufacturing industry
is a major reason for this. Many low-income people, particularly women, work in garment
manufacturing and more work and higher wages are supporting increased retailing
expenditure.
▪ Spending is also rising among more affluent consumers as economic confidence improves.
Shopping is increasingly viewed as a leisure pastime among the urban middle-class, many of
whom are becoming more interested in lifestyle purchases. Many consumers are also
interested in denoting their newfound affluence with aspirational purchases as conspicuous
consumption takes hold among the urban middle class. This marks a significant point of
difference from the majority of Bangladeshis whose shopping habits are restricted to
purchases of the absolute essentials of life. Increasingly, middle-class urban professionals
regard a trip to a shopping centre as a family day out. Most large-scale shopping centres in
Bangladesh also offer a wide range of leisure facilities.
▪ Young adults are a major driver of growth in retailing and the predominance of young adults
among the country’s overall population is a major reason for this. Young mid- to high-income
urban consumers are more likely to be attracted by major brands and they are also generally
more likely to enjoy visiting shopping centres. These consumers are also more likely than
their older counterparts to own smartphones and to shop online, with informal sales via
Facebook remaining popular. It has been estimated that at least 90% of Bangladesh’s
Facebook users are aged below 35.
▪ Only 39% of the Bangladeshi population lived in cities at the end of the review period,
although this figure is rising quickly. Average incomes and purchasing power are much higher
in urban areas than in the country’s rural regions. Nevertheless, widespread poverty and the
price-sensitivity that result from this continue to place limits on the development potential of
formal retailing, with modern retailing facing strong barriers to growth on this basis. The prices
charged in modern retail outlets are very high by comparison with other channels in this is not
least due to the higher tax burden that outlets in these channels face. Moreover, modern
retailers face far higher overheads and development costs, a major issue in a country where
quick return on investment is on offer in various other areas of commerce. Higher prices mean
that modern retailing is confined mainly to the country’s largest cities Dhaka and Chittagong,
although modern retail outlets are also spreading to smaller cities such as Sylhet and
Rajshahi.
▪ E-commerce is developing rapidly in Bangladesh, although the consumer base for online
shopping resides almost entirely in the country’s major cities. However, demand is gradually
spreading to smaller cities and towns. Nevertheless, it should be noted that growth in informal
sales via social media platforms such as Facebook haw been outpacing growth in formal e-
commerce. Moreover, the faith of consumers in e-commerce generally has been shaken to
the foundations by the e-commerce fraud epidemic which struck Bangladesh during 2020 and
2021. As consumers came more interested in distance selling in general and e-commerce in
particular due to the impact of the COVID-19 pandemic, fraudsters took the opportunity to
deprive huge numbers of consumers of their money by presenting goods for sale, taking
payment for orders and then never delivering the purchases. This situation has been widely
discussed in the media, with most commentators suggesting that the development of e-
commerce invalidation has been sent back years by these unfortunate and unfavourable
developments.
▪ Further expansion of Bangladesh’s middle-class is expected over the forecast period and this
is set to be due mainly to economic development, urbanisation and overall population growth.
The share of total population living in urban areas is expected to rise to 43% by 2026, with the
median age of the population rising to 30. However, the total number of young adults is set to
increase. The young, affluent urban consumer base that pushed growth and development in
the country’s retailing industry during the review period is set to continue doing so over the
forecast period, increasingly favouring modern retailers and the high-quality products and
well-known brands that are sold in these outlets. These consumers are also likely to become
increasingly interested in e-commerce, with informal selling via social media likely to be at the
forefront of this. Nevertheless, Bangladesh’s population is set to continue comprising
predominantly low-income people and rural-dwellers, the majority of whom have very limited
spending budgets, with many remaining generally unaware of modern retailing.
▪ Economic growth and expansion of the urban middle-class can be expected to support growth
in private consumption during the forecast period, despite the declines seen in formal
remittances towards the end of the review period, the result of the COVID-19 pandemic and
the departure of numerous Bangladeshi workers from Middle Eastern countries, in particular.
However, while official figures for remittances are in decline, this may be due to the rising use
of hundis or informal remittance systems. These are often unregistered money transfer apps
that enable users to transfer money at lower cost. Remittances remain a key source of
income for many households in the country. It is common for families to have at least one
member working abroad and sending money home on a regular basis.
▪ Positive growth in GDP over the forecast period is expected to be underpinned by
improvements in foreign direct investment. However, rising temperatures due to global
heating are a worry for many, while the threat of natural disasters, spikes in inflation and
increasing income disparity could erode overall household spending, particularly among low-
income groups living in rural areas. Consumer spending power could also be hampered by
VAT reforms that were implemented during the review period. The long-delayed changes to
the country’s VAT regime are likely to result in sharp price increases for many products while
also generating stronger cost pressures for manufacturers and suppliers. Moreover, high
commercial rents are likely to remain a major cost burden for retailers. Rents on retail space
in Dhaka and Chittagong have continued to increase despite the impact of the COVID-19
pandemic, with further rent increases set to negatively impact the cost structures of retailers
during the forecast period.
▪ Positive influences on retail spending and the development of modern retailing are expected
to include the increasingly busy lifestyles of urban consumers, improvements in the quality of
life, sustainable economic growth, the increasing impact of Western culture and the ongoing
modernisation of Bangladesh’s retailing infrastructure. Longer working hours and the
emergence of a large group of people with more than one job and the shift away from the
traditional way of life towards more modern lifestyles are set to be the most influential wider
background trends. Furthermore, government campaigns to improve electrification in rural
areas, which have already resulted in the vast majority of rural households having a constant
electricity supply, are set to continue during the forecast period, while mobile and fixed-line
internet is being extended to much of the country’s population. In particular, the significant
spikes seen recently in sales of LED TVs, air conditioning units and home furniture and
furnishings and the steady growth seen in demand for modern grocery retailing are a strong
indicator of the positive effects of rising purchasing power and lifestyle changes among both
the urban and rural populations.
Logistics/ infrastructure
▪ There were no major disruptions seen to the supply and delivery of grocery and non-grocery
merchandise seen in Bangladesh’s retailing industry as a result of the COVID-19 pandemic
during 2020 and 2021. Manufacturers and distributors acted quickly at the first sign of
potential disruption due to rapid developments during the early stages of the pandemic, with
sales and delivery plans enacted to avoid supply bottlenecks and stock shortages.
▪ E-commerce became a far more attractive option for very many Bangladeshi consumers
during 2020 and 2021 as many people look to avoid coming into contact with the COVID-19
virus whilst in crowded stores. However, the epidemic of online fraud which swept through
Bangladesh towards the end of the review period has placed limits on the growth potential of
e-commerce, with the exponential growth recorded between 2016 and 2020 giving way to far
more moderate growth rates as many consumers talked at the idea of risking losing money by
engaging with potentially fraudulent e-commerce websites. The risk of fraud became so high
at the peak of the pandemic that most of Bangladesh is major retail banks suspended online
card transactions to protect their customers from potential fraud. Thus, it is clear that serious
challenges remain for the country’s e-commerce businesses as they focus on improving sales
and accelerating growth rates.
▪ Recent years have seen many of Bangladesh’s traditional retailers focusing more on
improving the interior decor of their stores and developing their operations in order to remain
relevant in a retailing industry that is increasingly beholden to the standards of modern
retailing. With modern retailing having developed rapidly over the course of the last decade,
consumers increasingly expect a clean, sanitary and well-organised environment when
shopping in stores, something which has not always been on offer in the outlets of traditional
retailers. Another area in which traditional retailers are attempting to compete more effectively
with modern retailers is in terms of the variety of stock they offer, with more modern shelving
and display stands increasingly being used by traditional retailers as a way of showcasing the
wider variety of products they offer as this becomes increasingly important as a differentiating
factor in the retailing industry.
▪ Although the road infrastructure in Bangladesh is improving, roads remain poor in many
areas. In particular, the roads in rural regions are often inadequate. Indeed, the majority of the
country’s roads remain below international standards, with poor maintenance linked to high
construction costs. Natural disasters such as floods and earthquakes also present a
significant threat to transportation infrastructure, while increasingly overcrowded cities and
high levels of traffic congestion hamper the distribution of products in urban areas.
Furthermore, the poor state of the country’s transportation infrastructure means that many
consumers shop locally whenever possible.
▪ Poor transportation infrastructure presents major challenges to the expansion of modern
retailers beyond the country's largest cities. Among the major factors that cause concern for
distributors when moving goods around the country are narrow roads, poor maintenance and
roadblocks and informal road tolls. During the annual rainy season, many roads are flooded
and become impassable. In many rural areas meanwhile, roads are generally unsuitable for
large vehicles and small carts are often the only way to distribute goods safely.
▪ Bangladesh’s major cities are increasingly overcrowded due to many years of uncontrolled
and unregulated urbanisation. Such rapid and chaotic change has resulted in extremely high
population density in Dhaka, Chittagong and other major cities and this has made it very
difficult to obtain large sites to develop large-format retailing infrastructure. As a result, there
are very few shopping centres in major urban centres. Thus, shopping centres are becoming
more popular as leisure destinations for mid- to high-income urban consumers, with the low-
income majority continuing to regard shopping centres as unaffordable and inaccessible. Very
high deposits and rents mean that only higher-priced stores are generally able to operate in
shopping centres.
▪ Shopping centres in Bangladesh are generally indoor buildings with enclosed stores, while
informal retailers generally operate outdoors. Most modern retailers seek shopping centre
locations as it is otherwise difficult to obtain prime retail space of a sufficient size for stand-
alone units. Shopping centres often group similar stores together, with Bashundhara City Mall
for instance having allocated its second and third floors mainly to apparel and footwear
specialist retailers.
▪ Cash remains by far the most popular payment method in Bangladesh. Modern retailers
generally accept card and cash payments, with merchant acceptance soaring during the
review period, while traditional grocery retailers only accept cash. Cheques are accepted by
very few retailers due to concerns over counterfeiting. Most consumers are more accustomed
to using cash to pay for their purchases, while financial card penetration remains low.
Concerns over security remain a major barrier to the wider adoption of financial cards, with
the online fraud scandal that struck the country toward the end of the review period
discouraging huge numbers of consumers to rely on digital payments and even financial cards
to make payment in both the proximity and remote environments. Furthermore, there are
additional fees and charges for card payments in many retail outlets. Cash on delivery also
remains the preferred payment method for online purchases, although . However, it should be
noted ash on delivery this payment method is not accepted by all e-commerce sites.
▪ Mobile payments emerged strongly in Bangladesh during the review period. This is linked to
the rising penetration of smartphones. bKash is the most popular mobile payment app and it
is viewed as more reliable and more secure than making payment via a financial card. A
growing number of store-based retailers and internet retailing players now accept bKash and
the mobile wallet was promoted heavily towards the end of the review period, with the issuer
notably offering a 10% in-store discount for those paying via the bKash app. International
payment platform PayPal was also launched in Bangladesh during the review period,
although it is far from certain that PayPal will be able to present a credible challenge to bKash
as PayPal requires its users to hold a financial card.
▪ Retailers in Bangladesh are increasingly using technology to attract consumers, with leading
retailers including Meena Bazar having already developed their own e-commerce sites.
Moreover, many manufacturers, distributors and retailers and their preference for listing their
products on online marketplaces such as Ajker Deal and Daraz. Selling a wide variety of
items via social media platforms such as Facebook has also become very popular among
smaller retail companies and, in particular, individuals acting as informal retailers. The
majority of such online traders accept cash-on-delivery as their preferred payment method.
However, informal retailing using social media as the primary communication platform has
come under intense scrutiny since the emergence of a online fraud epidemic.
▪ It is not uncommon for major e-commerce players to accept cash on delivery as well and this
is a reflection of the status of cash on delivery as the primary payment method for distance
selling in Bangladesh. It should be noted that the popularity of cash on delivery has been
supported by the online fraud epidemic which struck Bangladesh towards the end of the
review.
▪ Loyalty schemes remain a popular way for the country’s retailers to attract and retain the
interest of consumers, particularly popular among the leading chained grocery retailers. In
addition, larger retailers are beginning to track customer spending in an effort to develop more
targeted offers and to achieve improvements in their stock keeping, pricing and marketing.
However, the majority of the country’s retailers maintain little interest in investing in
technological advances, with the country lagging behind global standards in even the most
basic measures such as the numbers of POS card reading terminals installed in retail outlets.
▪ Fixed prices are becoming more common in retail outlets throughout the country as the
government seeks to clamp down on the process of over-charging by retailers. Many retailers,
especially those operating in traditional and informal channels, habitually over-charge in the
assumption that customers will automatically want to haggle prices down to more acceptable
levels. Mobile courts operated by the Government have taken the initiative in implementing
fixed prices in most of the permanent markets that are a common feature of Bangladesh’s
cities. These initiatives focus mainly on non-grocery such as consumer electronics, cosmetics
and apparel and footwear.
▪ Facebook is also increasingly used as a marketing platform for retailers operating in
Bangladesh, a reflection of the increasing popularity of Facebook among local consumers.
Despite recent improvements in internet speeds due to the development of IT of the structure,
there is still a significant number of Bangladeshis who use the internet only infrequently, if at
all. This can make social media marketing considerably less effective than many retailers
would like to believe, especially when marketing materials include video content.
▪ VAT is now applied to e-commerce under tax laws that came into effect during 2019. This has
eroded one of the major strategic advantages of e-commerce: lower prices than what is
charged by store-based retailers. This had a negative impact on the development of e-
commerce towards the end of the review period, especially in terms of undermining the
positive impact of the COVID-19 pandemic on demand for e-commerce generally.
▪ The use of messenger apps as a primary sales and marketing channel increased substantially
towards the end of the review period, with the impact of the COVID-19 pandemic creating the
ideal preconditions for the expansion of the use of messaging apps to create direct links
between retailers and their customers throughout 2020 and 2021.
▪ One of the main drags on growth in e-commerce in recent years has been the limited range of
shipping options on offer. For instance, Bangladesh’s state post office is notoriously
unreliable, particularly outside of the Dhaka region. For this reason, private courier services
are used as delivery contractors by most retailers, including SA Paribahan and Sundarban
Courier Service. These services are generally reliable and are widely trusted despite being
regarded as expensive. However, even private couriers often require customers to collect
online purchases from regional depots rather than offering home delivery, especially outside
of the Dhaka region.
▪ Smartphone penetration continue to rise significantly in Bangladesh towards the end of the
review period, in line with the trends seen earlier in the review period, a trend which has had a
very positive influence on growth in e-commerce. The advent of Bangladesh’s 5G network
has played a crucial role by making internet browsing faster and more reliable for many
millions of consumers.
Informal retailing
▪ Informal retailing remains ubiquitous in Bangladesh and it has been estimated that some 50%
of grocery retailers in major cities are unregistered, a figure that rises to around 80% in
smaller cities and rural areas. Throughout the country, the popular image of retailing is
intrinsically tied to individual entrepreneurs and family businesses and this contributes to the
widespread participation in, and acceptance of, informal retailing. Even high-income
consumers are more than happy to engage with informal retailing. The popularity of informal
retailing is linked to its widespread presence and lower prices, with informal retailers able to
minimise overheads such as marketing costs and rents while also evading taxes.
▪ Bangladesh’s informal retailers were heavily negatively affected by the COVID-19 pandemic
and this was mainly the result of the strict approach taken to social distancing and home
seclusion in response to the threat of contagion. With consumers looking to spend most of
their time at home to avoid come into contact with the COVID-19 virus, informal retailers
found themselves struggling. This is because most informal retailers in Bangladesh play their
trade in busy areas in major cities. With such locations experiencing far lower levels of
consumer foot traffic during the pandemic, informal retailers were unable to generate the
levels of sales that they took for granted prior to the onset of the COVID-19 pandemic.
▪ Exacerbating the negative scenario for Bangladesh’s informal retailers during the early stages
of the pandemic was the fact that many of these informal traders live hand-to-mouth
existences, relying on their daily incomes to buy life’s essentials. With the ability to generate
sufficient income to sustain a decent standard of living under immense pressure during the
pandemic, many of the countries informal retailers made major changes to their business
patterns.
▪ However, as soon as restrictions on the mobility of the local population were lifted,
Bangladesh’s informal retailers experienced a strong rebound in their fortunes as the pressure
that has come on household incomes as a result of the interruptions course to commercial
activity in key sectors of the local economy by the COVID-19 pandemic motivated many low-
income and middle-income consumers to search for the most affordably priced products and
services. Crucial to the business models of Bangladesh’s informal retailers is the fact that
such businesses are not registered to pay tax on their profits, meaning that they can offer a
wide range of essential products at very affordable prices. Many informal retailers are not
pursued for taxes and various other charges and levies and this is a reflection of the
benevolent attitude that the government of Bangladesh has taken to informal retailing
generally. This lenient approach to the regulation of informal retailing is a reflection of the
importance that informal retailing has in the country’s economy and society, with very many
consumers reliance on the lower prices and convenience that informal retailing represents.
▪ Counterfeit products and illegal imports continue to dominate the merchandise on offer via
informal retailing, particularly when it comes to apparel and footwear, mobile phones, tobacco,
alcoholic drinks, consumer electronics and beauty and personal care. In this way, informal
retailing damages the ability of the government to generate tax revenues . Nevertheless, the
government has so far done little to clamp down on informal retailers. The main reason is that
there is a threat of rioting and civil unrest in the event that low-income consumers were
unable to continue shopping via informal channels, as they have done for generations.
Instead, the government has focused its control efforts on targeting mass distributors.
Facilities storing illicit goods have been raided, while illegal imports have been seized at ports
and land border entry points. In addition, the fact that many informal retailers operate from
mobile premises means that they can be very difficult to keep tabs on effectively, contributing
to the difficulties that the authorities face in controlling informal retailing.
▪ It has been estimated that there are more than 260,000 street hawkers operating in Dhaka
alone, each generating more than BDT1,825 per day in revenues. However, according to the
Hawker Federation, which represents the interests of these informal business operators, the
actual number of informal traders on the streets of Bangladesh’s capital is closer to one
million. Around 300,000 people are directly or indirectly involved with informal retailing
throughout the rest of the country. However, the City Corporation of Dhaka has decided to
evict many informal retailers from their roadside pitches. Nonetheless, these and similar
campaigns have also been accompanied by efforts to rehabilitate informal retailers and
convert their operations into formal retailing. Special ID cards and trading licenses are now
being provided to hawkers in an effort to organise and register them and minimise the
negative effect that they have on the country’s formal retailing industry. This system of
licensing informal retailers in Dhaka is being conducted via a digital system, rather than
processing them manually, as weas done previously.
What next for retailing?

▪ With the retailing industry set to enter a new phase of development during the post-COVID-19
era, it is inevitable that informal retailing and traditional retailing will remain dominant.
However, modern retailing is slowly gaining a higher profile, especially in urban areas, where
many affluent professionals are leading increasingly busy lifestyles that lend themselves to
shopping in modern retail outlets. With chained modern retailers such as Shwapno having
registered annual growth of up to 20% in recent years, far higher than the estimated 5%
annual growth recorded in open markets during the same period, there is a lot of evidence to
suggest that consumers are slowly becoming more interested in supermarkets and other
modern retail outlets, while the amount of attention being paid to traditional retailing channels
such as open markets is slowly diminishing.
▪ E-commerce is expected to continue registering positive growth over the forecast period
despite the negative impact of the epidemic of online fraud that spread among the population
of Bangladesh during the COVID-19 pandemic. The government has enacted a strategy to
combat online fraud and improvements in payment security are expected to combine with a
savvier and more security-conscious attitude among the general population to reduce the risk
of online payment fraud substantially. Major players in the retailing industry are expected to
play a key role by embracing many new technologies, including artificial intelligence for price
forecasting and probation allocation for assortment optimisation.
▪ While Bangladesh’s economy struggled initially to absorb the impact of the COVID-19
pandemic, specifically the interruptions that the pandemic cause to commercial activity in key
sectors of the economy, the outlook for the recovery of Bangladesh’s economy is very
positive. Consumer spending is expected to recover, with all modern and traditional retailing
channels expected to benefit from this positive situation. However, with consumers
increasingly focused on product quality and the in-store shopping experience, it is becoming
increasingly likely that consumers will favour modern retailing. In response, the country’s
leading chained grocery retailers are focusing on expanding their businesses, partially to
achieve a wider footprint and partially to take advantage of opportunities that have emerged in
the post-COVID-19 era. Mixed retailers is also expected to perform well as consumers are
increasingly looking for transparency, personal service and the opportunity to return unwanted
items when shopping, especially for non-grocery products.
▪ More broadly, rising demand for retailing is expected to be underpinned by the ongoing
expansion of the country’s already sizeable middle-income group, with disposable income
levels set to continue rising among this core consumer base for modern retailing. Consumers
are increasingly likely to pursue aspirational lifestyles and this means that they are likely to
become more interested in spending money on non-essential items. This trend is set to be
supported by urbanisation, the spread of modern retailing, improvements in access to credit
and the relative youth of the Bangladeshi population.
▪ Nevertheless, the fact that the majority of Bangladesh’s population are low-income people
that live in rural areas is set to place limits on the growth potential of the country’s retailing
industry. The high levels of population density in Bangladesh’s major cities are also set to
continue presenting challenges to retailers that prefer to operate from large-format premises.
However, more shopping centres are expected to open in suburban areas on the periphery of
Dhaka and other major urban areas.
▪ Modern retailing is set to remain the preserve of affluent urban consumers, with the low-
income majority likely to continue relying on informal retailing and traditional grocery retailers
for all of their shopping needs. However, the spread of modern retailing is expected to centre
mainly on non-grocery specialists such as apparel and footwear specialist retailers and
homewares and home furnishing stores. Modern grocery retailers continues to struggle to
establish a dominant position due to the higher taxes that such outlets attracting comparison
with their rivals operating in traditional and informal retailing, with many traditional grocery
retailers pay no rent or tax at all. This makes it easy for traditional grocery retailers to
significantly undercut their modern retailing rivals in terms of price. However, the increasing
use of loyalty schemes and the wider range of products on offer are set to become
increasingly appealing to Bangladesh’s urban middle-class.
Chart 1 Retailing: Traditional Non-Grocery Retailer
Source: Euromonitor International
Chart 2 Retailing: Traditional Grocery Retailer
Chart 3 Retailing: Apparel and Footwear Specialist Retailer
Chart 4 Retailing: Apparel and Footwear Specialist Retailer
MARKET DATA
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
Store-Based Retailing 2,301,73 2,577,54 2,865,61 3,185,68 3,157,10 3,333,79

7.9 6.3 1.5 5.5 3.6 9.7
Non-Store Retailing 6,000.0 14,400.0 42,000.0 96,348.0 169,911.0 186,902.1

Retailing 2,307,73 2,591,94 2,907,61 3,282,03 3,327,01 3,520,70
7.9 6.3 1.5 3.5 4.6 1.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2016-2021
% current value growth, retail value rsp excl sales tax
2020/21 2016-21 CAGR 2016/21 Total
Store-Based Retailing 5.6 7.7 44.8

Non-Store Retailing 10.0 98.9 3,015.0
Retailing 5.8 8.8 52.6
Table 3 Sales in Store-Based Retailing by Channel: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
Grocery Retailers 1,825,30 2,055,99 2,294,15 2,556,38 2,671,17 2,846,41

9.7 2.6 7.0 0.0 7.9 9.0
Non-Grocery Specialists 444,659.3 486,353.1 532,365.1 585,630.4 457,640.9 461,358.8
Mixed Retailers 31,768.9 35,200.7 39,089.3 43,675.1 28,284.7 26,021.9
7.9 6.3 1.5 5.5 3.6 9.7
Note 1: Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
Note 2: Off-price retailing not included in store-based retailing total to avoid double counting as off-price retailing
is a duplicate category already accounted for within apparel and footwear specialists and department
stores.
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
Grocery Retailers 6.6 9.3 55.9

Non-Grocery Specialists 0.8 0.7 3.8
Mixed Retailers -8.0 -3.9 -18.1
stores.
Table 5 Store-Based Retailing Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021
Grocery Retailers 702,077.0 705,503.0 708,903.0 712,247.0 713,320.0 717,991.0

Mixed Retailers 95.0 107.0 119.0 131.0 132.0 139.0
Store-Based Retailing 770,498.0 778,532.0 786,679.0 794,972.0 798,982.0 808,312.0
stores.
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2016-2021
% unit growth
2020/21 2016-21 CAGR 2016/21 Total

Mixed Retailers 5.3 7.9 46.3
stores.
Table 7 Sales in Non-Store Retailing by Channel: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
Direct Selling - - - - - -
Homeshopping - - - - - -
Vending - - - - - -
E-Commerce (Goods) 6,000.0 14,400.0 42,000.0 96,348.0 169,911.0 186,902.1
Note 1: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Note 2: Mobile e-commerce (goods) not included in non-store retailing total to avoid double counting as this
category is already accounted for within e-commerce (goods).
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
Direct Selling - - -
Homeshopping - - -
Vending - - -
E-Commerce (Goods) 10.0 98.9 3,015.0
Non-Store Retailing 10.0 98.9 3,015.0
Table 9 Retailing GBO Company Shares: % Value 2017-2021
% retail value rsp excl sales tax

Company 2017 2018 2019 2020 2021
ACI Ltd 0.3 0.4 0.4 0.4 0.5

Walton Group 0.4 0.4 0.4 0.3 0.3
Rangs Electronics Ltd 0.2 0.2 0.2 0.1 0.1
Others 99.0 99.0 99.0 99.1 99.1
Total 100.0 100.0 100.0 100.0 100.0
Table 10 Retailing GBN Brand Shares: % Value 2018-2021

Brand Company (GBO) 2018 2019 2020 2021
Shwapno ACI Ltd 0.4 0.4 0.4 0.5

Walton Plaza Walton Group 0.4 0.4 0.3 0.3
Rangs Rangs Electronics Ltd 0.2 0.2 0.1 0.1
Others 99.0 99.0 99.1 99.1
Total 100.0 100.0 100.0 100.0
Table 11 Store-based Retailing GBO Company Shares: % Value 2017-2021

Company 2017 2018 2019 2020 2021
ACI Ltd 0.3 0.4 0.4 0.5 0.6

Walton Group 0.4 0.4 0.4 0.3 0.3
Others 99.0 99.0 99.0 99.1 99.0
Total 100.0 100.0 100.0 100.0 100.0
Table 12 Store-based Retailing GBN Brand Shares: % Value 2018-2021
Shwapno ACI Ltd 0.4 0.4 0.5 0.6

Others 99.0 99.0 99.1 99.0
Total 100.0 100.0 100.0 100.0
Table 13 Store-based Retailing LBN Brand Shares: Outlets 2018-2021
sites/outlets
Brand (GBO) Company (NBO) 2018 2019 2020 2021
Walton Plaza Walton Group 354 368 372 372

Rangs Rangs Electronics Ltd 237 242 242 242
Shwapno ACI Ltd 124 140 145 178
Others Others 785,964 794,222 798,223 807,520
Total Total 786,679 794,972 798,982 808,312
Table 14 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026

9.7 6.1 0.5 8.2 8.0 5.9
Retailing 3,520,70 3,763,04 3,933,59 4,065,07 4,188,79 4,306,94
1.8 7.2 8.8 4.8 3.2 7.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.
Table 15 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth

2021-2026
% constant value growth, retail value rsp excl sales tax
2021/2022 2021-26 CAGR 2021/26 Total

Non-Store Retailing 1.0 7.3 41.9
Retailing 6.9 4.1 22.3
trade sources
Table 16 Forecast Sales in Store-Based Retailing by Channel: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026
Grocery Retailers 2,846,41 3,018,41 3,125,37 3,214,39 3,296,22 3,373,41

9.0 6.9 5.8 8.6 4.8 4.3
Mixed Retailers 26,021.9 37,731.8 42,259.6 44,372.6 46,369.3 48,224.1
9.7 6.1 0.5 8.2 8.0 5.9
trade sources
Note 1: Forecast value data in constant terms.
stores.
Note 4: No forecast data available for luxury and off-price retailing.
Table 17 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2021-

2026
2021/2022 2021-26 CAGR 2021/26 Total

trade sources
stores.
Table 18 Forecast Store-Based Retailing Outlets by Channel: Units 2021-2026
outlet
2021 2022 2023 2024 2025 2026
Grocery Retailers 717,991.0 721,961.0 725,078.0 727,991.0 730,915.0 733,632.0

Mixed Retailers 139.0 156.0 167.0 175.0 183.0 191.0
Store-Based Retailing 808,312.0 818,145.0 827,170.0 836,107.0 845,137.0 853,973.0
trade sources
stores.
Table 19 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2021-2026
% unit growth
2021/22 2021-26 CAGR 2021/26 Total

trade sources
stores.
Table 20 Forecast Sales in Non-Store Retailing by Channel: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026
Direct Selling - - - - - -
Homeshopping - - - - - -
Vending - - - - - -
E-Commerce (Goods) 186,902.1 188,771.1 207,648.2 226,336.6 245,575.2 265,221.2
trade sources
Table 21 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2021-2026
2021/2022 2021-26 CAGR 2021/26 Total
Direct Selling - - -
Homeshopping - - -
Vending - - -
E-Commerce (Goods) 1.0 7.3 41.9
Non-Store Retailing 1.0 7.3 41.9
trade sources
DISCLAIMER
Forecast closing date: 17 January 2022
Report closing date: 17 May 2022
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2021 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global and national level, readers can access
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
▪ Market sizes are researched at category level, lower data levels are modelled.
▪ Retailing excludes the following industries and channels: specialist retailers of motor vehicles,
motorcycles, vehicle parts, fuel; foodservice; the rental, hire and leasing of products;
wholesalers; cash and carry outlets; consumer-to-consumer transactions; informal retailing;
and revenues generated by duty free retailers.
▪ Retailing sales value excludes the following categories: motor vehicles, motorcycles, vehicle
parts; fuel; revenue from all services wherever possible (such as banking); and captive and
semi-captive establishments.
MODERN GROCERY RETAILERS
2021 Developments
▪ Supermarkets recorded a dramatic acceleration in growth during 2020 and 2021 as the entire
category benefited from the changes that were seen in the shopping habits of local
consumers in response to the COVID-19 pandemic. With many people looking to reduce the
risk of coming into contact with the COVID-19 virus whilst shopping in stores, supermarkets
became a much more appealing option due to the wide range of daily essentials that are
available under a single roof, which obviated the need for consumers to visit numerous
different stores to obtain their groceries, in this way minimising their potential exposure to the
COVID-19 virus. Furthermore, affluent urban professionals increasingly regard supermarkets
as more pleasant and relaxing places to spend time than other grocery retailing options,
specifically traditional grocery retailers. In particular, younger consumers tend to find shopping
in supermarkets to be a more comfortable and relaxing experience, while the convenience
that supermarkets represent appeal to affluent urban dwellers with busy lifestyles.
▪ One of the key trends in modern grocery retailers during 2020 and 2021 was the substantial
tilt towards e-commerce that formed the core of the retailing industry’s response to the
challenges presented by the COVID-19 pandemic. While some of the country’s leading
modern grocery retailers had already made some initial forays into online retailing, the
instigation of quarantine lockdowns during 2020 provided the impetus for a dramatic increase
in the interest of modern retailers in developing the requisite infrastructure to facilitate mass e-
commerce. Central to these efforts were the development of attractive and convenient e-
commerce websites, while one-click inventory systems and innovative logistics systems were
implemented to facilitate internal processes and ensure rapid and reliable home delivery of
grocery orders.
▪ The higher prices charged in modern grocery retailers in comparison with traditional channels
and, in particular, informal retailing remain a major barrier to the wider adoption of modern
grocery retailers among the population of Bangladesh. This is largely due to the fact that the
product sold by modern grocery retailers attract 5% VAT, while many traditional retailers and
virtually all informal retailers do not operate within the formal taxed economy. The Bangladesh
Supermarket Owners Association (BSOA) has been lobbying for the government to introduce
uniform VAT for grocery retailers, although recent reforms failed to close the VAT gap
between traditional and modern retail channels.
▪ It is very common among the population of Bangladesh to always look for the lowest prices
and best bargains when shopping for food and other groceries and this places modern
grocery retailers at a huge disadvantage due to their prices comparing unfavourably with
those of their rivals operating in the traditional and informal retailing spheres. Furthermore,
there is a widely held perception that the quality of the fresh food and other perishable
foodstuffs sold via traditional channels, notably open markets, is far superior to what is on
offer in modern grocery retailers outlets. Moreover, traditional and informal retailing offer
substantial convenience as traditional stores and streetwalkers are present on virtually every
street corner throughout the country.
▪ Another key factor underpinning the strong growth seen in modern grocery retailers during the
review period is the small overall size of the channel, with sales still rising from a low base.
Supermarkets and convenience stores are the most prominent categories of modern grocery
retailers in Bangladesh and the numbers of such outlets present in the country continue to
increase. Demand for modern grocery retailers is rising as income levels increase and the
affluent urban middle-class continues to expand. This is largely the result of many years of
robust economic growth, with affluent urban consumers increasingly attracted to
supermarkets and convenience stores by longer opening hours and the pleasant and hygienic
shopping environments that these types of stores offer in comparison with traditional markets.
Indeed, affluent consumers are increasingly shunning traditional markets due to concerns
over the disorganised product displays, poor hygiene and cramped and crowded shopping
experiences that tend to typify such retail outlets.
▪ Another factor that has made modern grocery retailers increasingly popular in Bangladesh is
that the prices charged in such outlets are fixed, which means that there is no need to haggle.
Haggling over prices remains one of the defining characteristics of informal retailing in
Bangladesh, with open markets in particular generally inconsistent when it comes to pricing.
▪ Much of the appeal of convenience stores lies in their image as conveniently located outlets
that offer high-quality products from early in the morning until late in the evening. The busy
lifestyles being led by urban consumers are encouraging more people to shop in these stores,
often on their way home from work in the evening. The most common products sold via
convenience stores are fresh food, packaged food and non-alcoholic drinks. However, it is
important to note that the vast majority of convenience stores in Ballard that are
independently owned and operated, rather than being operated under the auspices of a major
chain.
▪ The popularity of supermarkets meanwhile tends to be based on the extensive range of
products on offer. At the same time, time-pressed urban professionals are increasingly
favouring major weekly shopping trips to a supermarket, with daily top-up shopping trips
undertaken in convenience stores. Modern grocery retailers are also increasingly expanding
beyond large cities into smaller cities and towns, with the Shwapno and Meena Bazar chains
leading the charge.
▪ Women comprise an important consumer base for modern grocery retailers. Women often
feel more comfortable visiting these types of outlets, while female consumers are also more
likely to take advantage of the internet
▪ Another major limitation on the development of modern grocery retailers is that 61% of
Bangladesh’s population lived in rural areas of the country, where the development of modern
grocery retailers remains at an incipient stage due to the focus of the channel’s leading
players on the country’s major cities.
▪ Larger outlet formats such as supermarkets are favoured by leading chained players such as
Infinity and Shwapno. These outlets tend to be able to attract huge volumes of shoppers.
However, it can also be difficult to find suitable retail space to operate larger-format stores in
Bangladesh’s crowded urban areas. Rapid urbanisation has resulted in Bangladesh’s major
cities being very crowded and this can make it difficult to find sites large enough to house a
supermarket. Moreover, demand for supermarkets remains virtually non-existent outside of
the country’s major urban areas due to the preponderance of low-income people in these
parts of the country. Furthermore, the poor state of the roads outside of major urban areas
means that distribution can be challenging.
▪ The competitive environment in modern grocery retailers remains highly fragmented, with
“others” accounting for the majority of sales and outlets in the channel. ACI Ltd remains the
leading player via its popular Shwapno chain, which comprised 178 outlets at the end of the
review period. The outlet network of the Shwapno chain continues to expand, with the
popularity of its stores due mainly to its aggressive pricing strategy as well as the retailer’s
commitment to selling mainly locally sourced fresh produce. Indeed, Shwapno’s value-for-
money positioning sets it apart from rivals such as Agora and Meena Bazar, which mainly
target mid- to high-income consumers.
▪ Furthermore, the Shwapno chain has a flexible approach to outlet size and format and there
are numerous types of Shwapno stores of various footprints, including large supermarkets
located in shopping centres and small convenience stores in high foot-traffic central areas of
Dhaka and Chittagong. The chain’s expansion currently focuses on franchised convenience
stores under the Shwapno Express banner, the vast majority of which are located in Dhaka or
Chittagong. The chain’s aggressive expansion via franchising and under the convenience
stores model is likely to continue influencing rival chains, with the advantages of convenience
stores and franchising in terms of keeping overheads to a minimum becoming increasingly
apparent.
▪ Rahimafrooz Superstores Ltd remains the second leading player in modern grocery retailers
via its ownership of the Agora chain of supermarkets. Agora continues to expand within the
context of its USD10 million investment programme, although the pace of the chained
expansion has come in to pressure due to the impact of the COBIT-19 pandemic.
Nonetheless, Agora supermarkets are becoming an increasingly common site in major cities
such as Dhaka, Chittagong and Sylhet.
▪ All of Bangladesh’s leading modern grocery retailers chains focus on offering global brands
and premium products, while customer loyalty programmes are increasingly seen as crucial
for retaining interest of consumers. As mentioned above, all of the country’s leading chained
modern grocery retailers are by now active in e-commerce, although there is still some way to
go before e-commerce becomes the default grocery shopping method for significant numbers
of bank identities, a situation which can be attributed at least partially to concerns over the
high levels of fraud that have been seen in e-commerce in recent years.
Prospects and Opportunities

▪ Further strong positive growth and development is expected to be seen in modern grocery
retailers over the forecast period. The main spurs on growth are expected to be population
growth, urbanisation and rising income levels, with these set to feel the expansion of the
urban middle-class, the consumer group that is set to continue comprising a substantial
proportion of the consumer base for convenience stores and supermarkets. Furthermore, with
these affluent urban consumers becoming more sophisticated, they are increasingly likely to
pay more attention to factors such as convenience, a pleasant shopping experience and
access to a wide range of high-quality products, rather than basing their purchasing decisions
almost entirely on price and the proximity of retail outlets to their homes.
▪ Nevertheless, the presence of modern grocery retailers is set to remain limited to
Bangladesh’s main major urban areas cities and little expansion is expected outside of large
cities such as Dhaka, Chittagong and Sylhet before the end of the forecast period.
Furthermore, the upmarket image and reputation for high prices that the country’s leading
supermarkets and convenience stores have is likely to continue placing limits on consumer
demand. For these reasons, most Bangladeshis are likely to continue preferring traditional
and informal retail channels, with modern grocery retailers set to continue accounting for only
a small proportion of total retailing value sales. The relatively slow returns on investment on
offer in the channel means that it can be difficult to obtain financing, while high interest rates
on commercial loans are set to continue suppressing investment in the channel.
▪ Various alternatives to shopping in-store are expected to become more popular in
Bangladesh during the forecast period. This can be seen as one of the more positive
outcomes of the COVID-19 pandemic for consumers, the proliferation of options for ordering
products to be delivered, with online and telephone orders likely to remain the most popular
distance selling methods for the country’s leading grocery retailers throughout the forecast
period. Many of the leading players in the channel developed permanent capacity in these
areas in response to the COVID-19 pandemic and it is expected that they will be able to take
advantage of improving business opportunities as consumers living in urban areas
increasingly turn to e-commerce and placing orders by telephone in order to avoid having to
visit a store to shop for their daily essentials.
▪ During the forecast period, the leading players in modern grocery retailers are expected to
continue investing in the development and implantation of new technologies that will inevitably
result in a better in-store shopping experience and greater convenience for consumers. In
particular, a common complaint among Bangladeshi consumers is that the freshness and
integrity of perishable foodstuffs tends to be less than ideal in supermarkets and convenience
stores. In response, major players such as Shwapno and Meena Bazar have invested in the
development of temperature-controlled storage and display units while also focusing on
improving their logistics systems, specifically eliminating middlemen and dealing directly with
farmers, to shorten supply chains and keep prices to a minimum.
Channel Data
Table 22 Modern Grocery Retailers: Value Sales, Outlets and Selling Space 2016-2021
2016 2017 2018 2019 2020 2021
Value sales BDT million 32,233.3 35,878.4 40,198.4 45,167.2 47,989.3 52,723.1
Outlets 485.0 501.0 517.0 532.0 537.0 575.0
Selling Space '000 sq m 200.2 216.4 233.4 249.8 254.2 272.5
Table 23 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth
2016-2021
% growth
2020/21 2016-21 CAGR 2016/21 Total
Value sales BDT million 9.9 10.3 63.6

Outlets 7.1 3.5 18.6
Selling Space '000 sq m 7.2 6.4 36.1
Table 24 Sales in Modern Grocery Retailers by Channel: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
-- Convenience Stores 6,446.7 7,252.5 8,137.3 9,162.6 9,619.5 10,529.0

-- Discounters - - - - - -
-- Forecourt Retailers - - - - - -
-- Hypermarkets - - - - - -
-- Supermarkets 25,786.7 28,626.0 32,061.1 36,004.6 38,369.8 42,194.1
- Modern Grocery 32,233.3 35,878.4 40,198.4 45,167.2 47,989.3 52,723.1
Retailers
Table 25 Sales in Modern Grocery Retailers by Channel: % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
-- Convenience Stores 9.5 10.3 63.3

-- Discounters - - -
-- Forecourt Retailers - - -
-- Hypermarkets - - -
-- Supermarkets 10.0 10.3 63.6
- Modern Grocery Retailers 9.9 10.3 63.6
Table 26 Modern Grocery Retailers Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021
-- Convenience Stores 323.0 334.0 345.0 355.0 358.0 383.3

-- Supermarkets 162.0 167.0 172.0 177.0 179.0 191.7
- Modern Grocery 485.0 501.0 517.0 532.0 537.0 575.0
Retailers
Table 27 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2016-2021
% unit growth
2020/21 2016-21 CAGR 2016/21 Total

Table 28 Modern Grocery Retailers GBO Company Shares: % Value 2017-2021

Company 2017 2018 2019 2020 2021
ACI Ltd 24.8 26.5 28.8 29.8 35.0

Rahimafrooz Bangladesh 3.3 3.7 3.7 3.6 3.9
Ltd
Gemcon Group 4.1 4.4 3.6 3.6 3.4
Others 67.8 65.3 63.9 63.0 57.7
Total 100.0 100.0 100.0 100.0 100.0
Table 29 Modern Grocery Retailers GBN Brand Shares: % Value 2018-2021

Shwapno ACI Ltd 26.5 28.8 29.8 35.0

Agora Rahimafrooz Bangladesh Ltd 3.7 3.7 3.6 3.9
Meena Bazar Gemcon Group 4.4 3.6 3.6 3.4
Others 65.3 63.9 63.0 57.7
Total 100.0 100.0 100.0 100.0
Table 30 Modern Grocery Retailers LBN Brand Shares: Outlets 2018-2021
sites/outlets
Shwapno ACI Ltd 124 140 145 178

Agora (Rahimafrooz Rahimafrooz Superstores 16 17 17 20
Bangladesh Ltd) Ltd
Meena Bazar Gemcon Group 20 17 17 17
Others Others 357 358 358 360
Total Total 517 532 537 575
Table 31 Modern Grocery Retailers LBN Brand Shares: Selling Space 2018-2021
selling space '000 sq m

Shwapno ACI Ltd 53.6 61.3 64.3 80.4

Agora (Rahimafrooz Rahimafrooz Superstores 7.2 7.9 7.9 9.3
Bangladesh Ltd) Ltd
Meena Bazar Gemcon Group 9.5 8.1 8.1 8.1
Others Others 163.1 172.5 173.9 174.7
Total Total 233.4 249.8 254.2 272.5
Table 32 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space
2021-2026
2021 2022 2023 2024 2025 2026
Outlets 575.0 595.0 610.0 625.0 640.0 655.0
trade sources
Table 33 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2021-2026
% growth
2021/22 2021-26 CAGR 2021/26 Total

Outlets 3.5 2.6 13.9
trade sources
Table 34 Forecast Sales in Modern Grocery Retailers by Channel: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026
-- Convenience Stores 10,529.0 11,318.7 11,884.7 12,419.5 12,916.2 13,407.1

-- Supermarkets 42,194.1 45,780.6 48,527.4 51,196.4 53,756.3 56,175.3
- Modern Grocery 52,723.1 57,099.3 60,412.1 63,615.9 66,672.5 69,582.3
Retailers
trade sources
Table 35 Forecast Sales in Modern Grocery Retailers by Channel: % Value Growth 2021-
2026
2021/2022 2021-26 CAGR 2021/26 Total

trade sources
Table 36 Forecast Modern Grocery Retailers Outlets by Channel: Units 2021-2026
outlet
2021 2022 2023 2024 2025 2026
-- Convenience Stores 383.3 397.0 407.0 417.0 427.0 437.0

-- Supermarkets 191.7 198.0 203.0 208.0 213.0 218.0
- Modern Grocery 575.0 595.0 610.0 625.0 640.0 655.0
Retailers
trade sources
Table 37 Forecast Modern Grocery Retailers Outlets by Channel: % Unit Growth 2021-
2026
% unit growth
2021/22 2021-26 CAGR 2021/26 Total

trade sources
TRADITIONAL GROCERY RETAILERS
2021 Developments
▪ Traditional grocery retailers remains the dominant retailing channel in Bangladesh. Traditional
grocery stores and open markets remain far more popular than supermarkets and
convenience stores, for instance, with traditional grocery retailers continuing to account for the
vast majority of overall value sales in grocery retailers during 2020 and 2021. The primary
appeal of traditional grocery retailers lies in the lower prices that these outlets charge for a
wide variety of products, the result of the lower level of VAT applied to products sold in
traditional retailers in comparison with in modern grocery retailers. Furthermore, the ubiquity
of traditional grocery retailers is another main reason for channels predominance. At the end
of the review period there were almost 717,500 traditional grocery retailers operating
throughout the country, including in rural areas. Far more consumers thus have access to
traditional grocery retailers than they do to supermarkets or convenience stores.
▪ One of the most important factors to take the consideration when assessing the performance
of traditional grocery retailers in Bangladesh during 2020 and 2021 was the substantial
commodity price increases that were seen in the country towards the end of the review
period. In particular, the rising cost of living has eroded purchasing power among the urban
middle-class, having a major impact on the ability of consumers to afford a comfortable middle
class existence. This led many less affluent middle-class consumers to trade down from
modern grocery retailers to traditional grocery retailers, with traditional grocers invariably
representing better value for money. Another very attractive feature of traditional grocery
retailers within this context was the informal lines of credit that neighbourhood grocery stores
usually offer to their regular customers. This proved crucial for many less affluent consumers
facing financial challenges in the wake of the COVID-19 pandemic.
▪ Traditional grocery retailers faced stiffer competition towards the end of the review period due
to the emergence of e-commerce and s-commerce as important distribution channels for
grocery items. Online retailers are able to compete with traditional grocery retailers on price,
while offering far greater convenience. In addition, the fact that many of the leading players in
the food and drink e-commerce Sofia in Butler – are also leading names in modern grocery
retailers also undermined the position of traditional grocery retailers to a large extent. While
many consumers now feel more comfortable doing their grocery shopping online, it should be
noted that there remains widespread scepticism in Bangladesh in relation to the safety and
security of online payments, a situation which is largely attributable to the e-commerce fraud
epidemic which struck Bangladesh towards the end of the review period. However, with many
online retailers offering cash on delivery as a payment option, consumer concerns over digital
payments can be allayed to a large extent.
▪ Proximity remains a major advantage for traditional retailers, with the heavy traffic congestion
and extreme high population density in cities such as Dhaka and Chittagong major factors
supporting the popularity of neighbourhood grocery stores. The fact is that any consumer who
wants to visit a shopping centre must commit themself to spending considerable time and at
least BDT100-150 for travel, with traditional retailers representing a very attractive alternative
for those who value their time and money.
▪ Traditional grocery retailers appeal to consumers of all income levels, including affluent mid-
and high-income people. Bangladeshi people usually prefer to shop in their local open market
or traditional grocery store, irrespective of their socioeconomic status. The main reason for
this is the convenience that these outlets represent due to their being located enclosed
committee to the homes of consumers. With roads and other transportation infrastructure
remaining inadequate and with traffic congestion high in urban areas, proximity to one’s home
remains critical when choosing a retail outlet. Furthermore, in many rural villages and
suburban towns, the local traditional retail outlet is often the only grocery store for miles
around.
▪ Many local grocery stores are considered to be important parts of the local community. In
particular, many traditional retailers offer their regular customers informal credit, creating
strong personal bonds between retailers and their customers. Furthermore, customers are
generally encouraged to haggle, meaning that regular customers are able to negotiate lower
prices. In addition, many consumers harbour doubts about the freshness of the fruit,
vegetables, meat and fish offered by supermarkets, while they are prepared to place their
trust in the fresh food offered by traditional grocery retailers.
▪ Traditional grocery retailers are often located in roadside locations. Very high population
density and overcrowding mean that these types of outlets tend to be small, including tiny
kiosks as small as 1.9 sq m. Even larger outlets rarely exceed 9.0 sq m in area. Most of these
outlets offer only a limited range of the most popular products, normally under economy
brands. They also usually offer various products in unpackaged format, including rice, edible
oils and herbs and spices. Many traditional retailers also offer essential products in small
sachets, with the very low retail selling prices of these products catering to low-income
consumers. Alternatively, traditional retailers often engage in bulk breaking, open impacts to
sell essential items by the individual unit.
▪ Among the most prevalent and important types of traditional grocery retailers are the open
markets owned and operated by municipal corporations that are a common feature of the
urban and suburban landscape in all of Bangladesh is major urban areas. These markets
feature numerous specialist retailers arranged according to the products they offer, including
fish and seafood, meat and poultry, fruit and vegetables and packaged food.
▪ Larger traditional grocery stores can generally be found in more affluent neighbourhoods of
large cities. These outlets target mid- to high-income consumers and offer higher-quality local
and global brands as well as fresh produce. However, these larger, more upmarket stores
account for only a tiny proportion of the total number of traditional grocery retailers outlets in
Bangladesh.
▪ Low-income consumers are most likely to shop in traditional roadside grocery stores and
kiosks. Many of these small stores have low overheads such as rent and utilities, while most
have only one employee. This enables them to offer their merchandise at very low prices. In
particular, modern retailers face high commercial rents, especially in shopping centres.
▪ Some middle-income consumers prefer to shop in modern grocery retailers, although higher
prices and concerns over the quality of the merchandise on offer in modern outlets, especially
fresh produce, mean that tradition outlets remain the most popular. In response to the
increasing competition they face from modern grocery retailers, some traditional grocery
retailers have made improvements to the layout of their stores and décor, organising products
by category and building attractive display shelves to improve the shopping experience and
match the clean and attractive appearance of convenience stores and supermarkets. In
addition, growing numbers of traditional grocery retailers are stocking a wider range of items,
including from leading brands, to appeal to quality-conscious middle-income consumers.
▪ The prevalence of traditional shanty house-type shops is decreasing appreciably in both rural
and urban areas. These types of outlets are increasingly being replaced by more formal and
professional types of outlets made from bricks and with large glass windows, many of which
are also pleasantly decorated. Interior décor is becoming more important for many
Bangladeshi people, encouraging traditional retailers to renovate their stores so as to appeal
to a wider consumer audience. Furthermore, many traditional retailers are now installing
refrigerators and freezers, digital scales and lighted shop signs to give their outlets more
professional appearance and make them more appealing at a time when incomes are rising
and consumers are becoming more sophisticated in their tastes.
▪ Among the items that are most commonly sold via traditional grocery retailers are bakery
products, confectionery and non-alcoholic drinks and shops selling these types of products
are becoming more common in urban and rural areas as demand increases. Among the
factors boosting demand for these products are the busy lifestyles being led by the urban
middle-class, while very high population density and traffic congestion mean that many people
are reluctant to travel very far to go shopping in a shopping centre or bazaar. Furthermore, it
is becoming more common for consumers of all income levels in both urban and rural areas to
host or attend social events such as birthday parties, get-togethers, new year parties and
various other events such as friends day and this is also pushing consumption of types of
products that are typically sold in the traditional grocery retailers outlets.
▪ Bangladesh’s traditional grocery retailers continue to face stiff competition from informal
retailing. In particular, informal retailers are able to undercut their rivals operating in traditional
formal channels as they rarely pay any tax at all. There are many traders in open markets and
street vendors offering a wide range of groceries, particularly fresh fruit and vegetables, fish
and seafood, meat and poultry spices and home-made prepared food informally in all parts of
the country. Street vendors usually ply their trade on foot or from rickshaws, while many are a
regular presence at the weekly or bi-weekly open markets that are a common feature of life in
both rural and urban areas of the country. Some itinerant retailers also work in residential
areas, going door-to-door and offering what many Bangladeshis see as the ultimate in
shopping convenience.
▪ Traditional grocery retailers are almost always independent operations and they are most
often family-run businesses. For this reason, there are no clear leaders in the channel. Given
the small size of most of these outlets in the small scale of their operations, it is common for
them to be staffed by just one or two employees.

▪ Traditional retailers is unlikely to lose its status as the most important retailing channel in
Bangladesh during the forecast period and this can be seen as a reflection of the iconic status
that these types of retail stores have in the country’s popular culture. Crucial to the enduring
popularity of traditional grocery retailers is the increasing adoption of a more proactive and
modern approach to retailing, with many traditional grocery retailers engaged in attempts to
rationalise and organise their stores, presenting their merchandise in a tidier and cleaner
manner and ensuring adequate ventilation and lighting. In addition, some traditional grocery
retailers are installing air conditioners and temperature-controlled storage and display units as
well as CCTV cameras and electronic inventory systems to ensure that they remain relevant
as Bangladeshis retailing industry becomes more professional and increasingly competitive.
▪ Other factors that are expected to underpin the positive performance of traditional grocery
retailers during the forecast period are the flexibility that such businesses have with regards to
their tax arrangements, not least the absence of any requirement for them to pay 5% VAT as
their rivals in modern grocery retailers are required to. Moreover, economic development is
likely to mean that the communities in which most traditional retailers operate will become
increasingly affluent, presenting myriad business opportunities at a time when traditional
retailers still have the opportunity to compete aggressively with modern grocery retailers. This
is likely to mean a wider range of merchandise on offer in traditional grocery stores, including
the international brands which are generally seen as the preserve of modern grocery retailers.
Channel Data
Table 38 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2016-
2021
2016 2017 2018 2019 2020 2021
Value sales BDT million 1,793,07 2,020,11 2,253,95 2,511,21 2,623,18 2,793,69
6.4 4.1 8.7 2.8 8.6 5.9
Outlets 701,592.0 705,002.0 708,386.0 711,715.0 712,783.0 717,416.0
Selling Space '000 sq m 41,424.1 42,172.7 42,889.6 43,575.8 44,093.0 44,799.3

Table 39 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: %
Growth 2016-2021
% growth
2020/21 2016-21 CAGR 2016/21 Total

Outlets 0.6 0.4 2.3
Table 40 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space
2021-2026
2021 2022 2023 2024 2025 2026
Value sales BDT million 2,793,69 2,961,31 3,064,96 3,150,78 3,229,55 3,303,83
5.9 7.6 3.7 2.7 2.3 2.0
Outlets 717,416.0 721,366.0 724,468.0 727,366.0 730,275.0 732,977.0
trade sources
Table 41 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2021-2026
% growth
2021/22 2021-26 CAGR 2021/26 Total

Outlets 0.6 0.4 2.2
trade sources
NON-GROCERY SPECIALISTS
2021 Developments
▪ Non-grocery specialists registered strong sales declines during 2020 as restrictions placed on
the ability of such retailers to operate at full capacity that were implemented in response to the
COVID-19 pandemic took their toll on the ability of retailers in the channel to generate sales.
In particular, the requirement for all non-grocery list to remain closed for business during the
quarantine lockdowns that were in effect during 2020 put substantial pressure on sales in the
channel. Moreover, no substantial rebound was recorded in sales during 2021 as

Bangladesh’s non-grocery specialists were able to begin operating at full capacity once again.
This is largely due to the significant pressure on household incomes that emerge from the
COVID-19 pandemic, which interrupted commercial activity in key sectors of the economy.
This resulted in a spike in employment and reduced earning capacity for very many
consumers, with household spending heavily focused on essentials as a result. This
undermined demand for non-grocery specialists generally, resulting in a highly unfavourable
scenario for the entire channel during both 2020 and 2021.
▪ Another key factor that undermined in-store sales for many of Bangladesh’s non-grocery
specialist during 2020 and 2021 was the huge shift that was seen towards e-commerce
among the country’s population in response to the COVID-19 pandemic stop with many
people like tend to shop in greater stores, even when social distancing restrictions made this
possible, due to fears of contagion, demand for a wide range of non-grocery goods shifted
towards the online sphere. Among the product categories that were subject to a significant
shift towards online channels during 2020 and 2021 were apparel and footwear, bags,
cosmetics and toiletries and writing instruments and stationery. Chained non-grocery
specialists which operate according to the tenets of modern retailing systems were best place
to take advantage of this rising demand for online sales of non-grocery products, with some
chained non-grocery specialists using their own website as primary sales portals, while many
also look to social media as a sales channel. This involves mainly the use of video content
posted on Facebook Live, while Facebook news feeds and YouTube channels have also
proven popular as online sales and marketing channels.
▪ Much of the retailing of non-grocery products in Bangladesh is accounted for by traditional
retailers that operate under a business model that has been in place for generations. The
prices charged in such outlets tend to be considerably lower than in the equivalent stores that
follow the modern retailing model, while traditional retailers are often very in-tune with the
needs of consumers in their local area. However, when it comes to products for which a more
modern image is important, including consumer electronics and apparel and footwear,
chained modern non-grocery specialists are beginning to outperform their more traditional
rivals. This has motivated many of the leading chained non-grocery specialists operating in
Bangladesh to expand their outlet networks, with second-tier cities a major focus of this. In
addition, significant numbers of traditional non-grocery retailers were forced to close down
their business permanently during the COVID-19 pandemic as they were unable to cover their
overheads and a time when consumer demand was at a particularly low ebb. This can also be
regarded as the result of the general lack of investment in traditional retailing in general in
Bangladesh, with the commercial pressures created by the COVID-19 pandemic living fatal
for many of the country’s less robust and less well-organised retail businesses.
▪ Outside of the COVID-19 pandemic, the main factor that has continued to underpin positive
growth in non-grocery specialists in recent years is undoubtedly the expansion of
Bangladesh’s urban middle class. Population growth, rising incomes and urbanisation are all
major background trends contributing to the increasing numbers of affluent urban-dwellers
who are becoming more aspirational in their purchasing habits. Nevertheless, the majority of
consumers in Bangladesh remain highly price-sensitive and heavily focused on low prices,
despite the growing numbers who prioritise quality over price and who are attracted by
leading brands.
▪ Rising spending on non-essential items is also supported by increasing levels of
sophistication among the general consumer base. More Bangladeshis are becoming more
interested in presenting themselves and their homes as attractive and modern, a trend which
has been spurred by the spread of social media. In particular, these trends have been
beneficial for apparel and footwear specialist retailers, health and beauty specialist retailers,
sports goods stores and jewellery and watch specialist retailers, with electronics and
appliance specialist retailers also benefiting from consumers becoming increasingly house-
proud.
▪ Electronics and appliance specialist retailers and apparel and footwear specialist retailers are
among the most popular channels in non-grocery specialists, alongside chemists/pharmacies.
Bangladesh is a major producer of apparel and footwear at global level and the domestic
apparel and footwear market remains significant due to the country’s large population.
Furthermore, economic development and the rising importance of maintaining a smart
appearance, especially among young people, have combined with the emergence of Western
fashion trends to support higher demand for fashion apparel and footwear. Chained apparel
footwear specialist retailers are now present in most parts of the country, including even
smaller regional towns and cities. Sales of footwear and personal accessories are also
benefiting from the trend for matching different items of apparel, footwear and personal
accessories such as jewellery.
▪ Electronics and appliance specialist retailers meanwhile continues to benefit from the
increasing interest in a wide range of consumer durables as Bangladeshis pay more attention
to the comfort and levels of equipment in their homes. In particular, LCD TVs and refrigeration
appliances have shown highly promising growth trends in recent years. High-income buyers
are attracted by the leading global brands, while less low-and mid-income consumers tend to
prefer lower-priced brands such as Symphony and Walton, each of which enjoys widespread
popularity among Bangladesh’s less affluent consumers.
▪ Smartphones were the runaway success story for most electronics and appliance specialist
retailers during the review period, despite the increase in import duty from 32% to 50%
implemented for these products, a move which was taken to support the local manufacturing
industry. The result is that Samsung, Walton and Symphony have begun to manufacture
and/or assemble smartphones in Bangladesh to reduce costs and remain competitive at
global level, resulting in a proliferation of affordable handsets becoming available in the
country.
▪ Another factor that has spurred growth in non-grocery specialists in recent years is widening
access to consumer credit. More retailers in channels such as electronics and appliance
specialist retailers and jewellery and watch specialist retailers now offer 12-month interest-
free credit on purchases over a certain amount. Furthermore, the youth of Bangladesh’s
population is another factor boosting sales in non-grocery specialists, with young adults
particularly aspirational in their shopping habits. Urbanisation is also a major driver of sales
growth, with non-grocery specialists largely limited to urban areas such as Dhaka and
Chittagong.
▪ With the vast majority of consumers remaining highly price-sensitive, most non-grocery
specialists make regular use of discount sales and price promotions to attract the attention of
consumers. However, there is also a growing focus on offering higher quality merchandise
and a more pleasant shopping experience. With many consumers shifting away from informal
vendors towards formal non-grocery specialists as their incomes rise, they are becoming
more interested in products that offer guaranteed quality. Sales tend to peak on Fridays, a
day of rest when few consumers have to work, which means that they have the time and
inclination to browse in shops. Sales via non-grocery specialists also tend to peak in the run-
up to major celebrations and festivals such as Eid, when most non-grocery specialists will
engage in intense price discounting in an effort to attract more consumers.
▪ Convenience is a less important factor in terms of attracting consumers to non-grocery
specialists outlets than it is for grocery retailers. Most consumers are resigned to the fact that
they will have to travel to reach such outlets as they tend to be located in city centres or
suburban shopping centres, with consumers required to take their chances with the country’s
underdeveloped travel infrastructure and high levels of traffic congestion to go shopping for
non-grocery products.
▪ E-commerce continues to pose significant competition to non-grocery specialists, despite the
impact of the online payment fraud epidemic which was in evidence in Bangladesh towards
the end of the review period. This is not least because the majority of e-commerce players
accept cash on delivery as a payment method, which means that consumers do not
necessarily have to engage with risky online transactions. With the country’s leading online
marketplaces typically offering a similar range of products at lower prices and with free home
delivery, it makes sense for consumers to at least consider e-commerce as an alternative to
store-based non-grocery specialist. Lower overheads mean that players active in e-commerce
are able to offer lower prices than store-based retailers. Department stores also presents
strong competition to non-grocery specialists, with these outlets generally offering unique
product ranges, including the types of foreign brands coveted by aspirational young urban
consumers.
▪ Non-grocery specialists is a highly fragmented channel and there are very few major brands
present. Walton Group remains the outright leader with its Walton Plaza chain of electronics
and appliance specialist retailers, followed by Rangs Electronics and Edison Group.
▪ Rangs and Walton Plaza each offers a wide range of consumer appliances and consumer
electronics, with Walton Plaza competing via cashback, discounts and consumer credit on
various types of products, notably refrigeration appliances. Edison Group's Symphony chain
meanwhile focuses on the sale of mobile phones and the retailer continues to benefit from its
reputation for offering the latest handsets. Symphony aims to appeal mainly to aspirational
mid- and high-income consumers.
▪ Singer Bangladesh is the largest home and garden specialist retailer in Bangladesh. The
company offers a wide range of consumer durables, including consumer electronics,
consumer appliances and the full range of homewares, among other items.
▪ With demand for branded apparel and footwear rising significantly, international brands are
entering apparel that was specialist retailers. For instance, France-based multinational sports
goods stores chain Decathlon opened its first large-scale store in Bangladesh during
2019,while late 2018 witnessed the entry of Orion Group with its chain of stores that offer a
wide range of leather goods and footwear. The opening of flagship mono-brand boutiques in
Dhaka is often undertaken in collaboration with local conglomerate DBL Group, a major player
in bringing vicious crucial garment manufacturing sector. The involvement of DBL Group
means that the company’s international retail partners have access to significant resources for
investing in the establishment of solid and extensive retail chains in Bangladesh.

▪ It is expected to take several years before non-grocery specialists in Bangladesh can recover
to pre-COVID-19 sales levels. With many independent players in the channel having faced
very harsh training conditions since the onset of the COVID-19 pandemic, many non-grocery
specialists are struggling to remain competitive, although the robust recovery of the local
economy during the post-COVID-19 period is likely to prove positive for many players in the
channel. With many consumers having delayed purchases of new consumer electronics,
consumer appliances and apparel and footwear due to the economic pressures and
uncertainty created by the COVID-19 pandemic, it is likely that the forecast period will see
related demand across a wide range of non-grocery categories as consumers realise deferred
purchases.
▪ Other factors that are expected to be favourable for the growth and development of non-
grocery specialists during the forecast period include the ongoing expansion of Bangladesh’s
affluent urban middle class, rising income levels generally and widening access to consumer
credit. Furthermore, the significant expansion of the channel’s reach via the opening of new
outlets, especially in second- and third-tier cities, is set to be a major spur on growth in the
channel. Numerous retail entrepreneurs have proven themselves very keen to capitalise on
rising consumer demand for a wide range of non-grocery goods and this is likely to be a major
reason for the anticipated entry of numerous new players in non-grocery specialist during the
forecast period.
▪ Nonetheless, the development of non-grocery specialists is likely to continue being hampered
by low average income levels among the general population and the fact that the majority of
Bangladeshis living in rural areas have little or no access to non-grocery retail outlets due to
their being located predominantly in urban areas. Moreover, with the spending of most
consumers focused on the absolute essentials and with informal retailing set to remain a
major presence, demand for non-grocery specialists is likely to remain limited to affluent mid-
and high-income consumers living in urban areas. Among this affluent urban consumer base
meanwhile, consumers are likely to become increasingly interested in e-commerce due to the
value and convenience that this emerging channel represents.
▪ While rising consumer interest in e-commerce is set to present strong competition to non-
grocery specialists overall during the forecast period, many of the leading players in the
channel are expected to invest in the development of online sales portals and improve
delivery logistics in order to take full advantage of the increasing consumer interest in
shopping online. While the epidemic of online payment fraud that Bangladesh towards the
end of the review. Has the potential to make some consumers wary of engaging the,
generally, the offer of cash on delivery so payment method is likely to ensure that consumers
remain interested in the e-commerce offer of the country’s leading non-grocery specialists. In
particular, use of social media platforms such as Facebook as marketing platforms for
independent retailers presents an ideal bridge towards e-commerce, with s-commerce likely
to remain at the core of the e-commerce operations of the majority of Bangladesh’s
independent non-grocery specialists throughout the forecast period.
Channel Data
Table 42 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2016-2021
2016 2017 2018 2019 2020 2021
Outlets 68,326.0 72,922.0 77,657.0 82,594.0 85,530.0 90,182.0
Table 43 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth
2016-2021
% growth
2020/21 2016-21 CAGR 2016/21 Total

Outlets 5.4 5.7 32.0

Table 44 Sales in Non-Grocery Specialists by Channel: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
- Apparel and Footwear 115,758.3 127,921.0 141,359.0 156,593.0 114,203.3 115,546.6

Specialist Retailers
- Electronics and 64,025.1 67,602.0 71,502.0 76,064.2 52,910.5 56,262.3
Appliance Specialist
Retailers
- Health and Beauty 133,204.9 147,069.6 162,519.1 180,483.0 166,488.1 161,749.6
- Home and Garden 13,066.9 13,990.1 14,976.6 16,110.9 12,881.0 12,184.8
- Leisure and Personal 38,250.7 42,365.7 47,004.0 52,547.8 36,894.8 38,646.1
Goods Specialist
Retailers
- Other Non-Grocery 80,353.4 87,404.6 95,004.4 103,831.5 74,263.3 76,969.4
Specialists
Table 45 Sales in Non-Grocery Specialists by Channel: % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
- Apparel and Footwear Specialist 1.2 0.0 -0.2

Retailers
- Electronics and Appliance Specialist 6.3 -2.6 -12.1
Retailers
- Health and Beauty Specialist Retailers -2.8 4.0 21.4
- Home and Garden Specialist Retailers -5.4 -1.4 -6.8
- Leisure and Personal Goods 4.7 0.2 1.0
- Other Non-Grocery Specialists 3.6 -0.9 -4.2
Table 46 Non-Grocery Specialists Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021

- Electronics and 5,515.0 5,624.0 5,730.0 5,827.0 5,826.0 5,838.0
Retailers
- Home and Garden 318.0 341.0 366.0 391.0 399.0 411.0
Goods Specialist
Retailers
Specialists
Table 47 Non-Grocery Specialists GBO Company Shares: % Value 2017-2021

Company 2017 2018 2019 2020 2021
Walton Group 2.3 2.2 2.2 2.3 2.2

Edison Group 0.5 0.5 0.4 0.2 0.4
Others 96.1 96.3 96.4 96.5 96.5
Total 100.0 100.0 100.0 100.0 100.0
Table 48 Non-Grocery Specialists GBN Brand Shares: % Value 2018-2021


Symphony Edison Group 0.5 0.4 0.2 0.4
Others 96.3 96.4 96.5 96.6
Total 100.0 100.0 100.0 100.0
Table 49 Non-Grocery Specialists LBN Brand Shares: Outlets 2018-2021
sites/outlets
Walton Plaza Walton Group 354 368 372 372

Rangs Rangs Electronics Ltd 237 242 242 242
Symphony Edison Group 288 288 111 213
Others Others 76,778 81,696 84,805 89,355
Total Total 77,657 82,594 85,530 90,182
Table 50 Non-Grocery Specialists LBN Brand Shares: Selling Space 2018-2021


Symphony Edison Group 36.4 36.4 13.8 27.0
Others Others 8,586.5 9,287.9 9,680.1 10,269.8
Total Total 8,921.1 9,642.2 10,015.1 10,617.9
Table 51 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space
2021-2026
2021 2022 2023 2024 2025 2026
Outlets 90,182.0 96,028.0 101,925.0 107,941.0 114,039.0 120,150.0
Table 52 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2021-2026
% growth
2021/22 2021-26 CAGR 2021/26 Total

Outlets 6.5 5.9 33.2
Table 53 Forecast Sales in Non-Grocery Specialists by Channel: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026

- Electronics and 56,262.3 62,967.3 66,004.9 66,665.0 67,198.3 67,601.5
Retailers
- Home and Garden 12,184.8 13,384.4 14,171.9 14,483.7 14,773.3 15,039.2
Goods Specialist
Retailers

Specialists
trade sources
Table 54 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2021-

2026
2021/2022 2021-26 CAGR 2021/26 Total
- Apparel and Footwear Specialist 16.1 7.5 43.6

Retailers
- Electronics and Appliance Specialist 11.9 3.7 20.2
Retailers
- Health and Beauty Specialist Retailers 8.7 6.0 33.9
- Home and Garden Specialist Retailers 9.8 4.3 23.4
- Other Non-Grocery Specialists 13.0 4.9 27.1
trade sources
Table 55 Forecast Non-Grocery Specialists Outlets by Channel: Units 2021-2026
outlet
2021 2022 2023 2024 2025 2026

- Electronics and 5,838.0 5,966.0 6,085.0 6,194.0 6,293.0 6,381.0
Retailers
- Home and Garden 411.0 440.0 469.0 497.0 524.0 550.0
Goods Specialist
Retailers
Specialists
trade sources
Table 56 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2021-

2026
% unit growth
2021/22 2021-26 CAGR 2021/26 Total
- Apparel and Footwear Specialist 9.5 8.6 51.3

Retailers
- Electronics and Appliance Specialist 2.2 1.8 9.3
Retailers
- Health and Beauty Specialist Retailers 6.8 6.1 34.7
- Home and Garden Specialist Retailers 7.1 6.0 33.8
- Other Non-Grocery Specialists 1.5 1.4 7.0
trade sources
MIXED RETAILERS
2021 Developments
▪ At the peak of the COVID-19 pandemic, Bangladesh’s mixed retailers found themselves
struggling to manage the impact of social distancing regulations that place limitations on their
ability to operate at full capacity. However, it’s retailers that sell food and beverages, beauty
and personal care and consumer electronics were able to continue retailing such products
throughout 2020 and 2021 due to the essential status of these items. Nonetheless, the
reluctance of consumers to shop in crowded stores due to fears that this would bring them
into contact with the COVID-19 virus and the pressure has gone out of incomes due to
interruptions caused the commercial activity in key sectors of the economy by the COVID-19
pandemic meant less than ideal trading conditions for mixed retailers in Bangladesh towards
the end of the review period.
▪ At the end the review period, mixed retailers remained a relatively underdeveloped retail
channel in Bangladesh. The presence of mixed retailers remains confined almost entirely to
department stores located in Dhaka and Chittagong. Only urban consumers would be able to
afford to shopping department stores due to high prices. Most of these outlets are small by
international standards and have a relatively narrow focus, including homewares, beauty and
personal care and tissue and hygiene, as well as limited ranges of shelf stable packaged
food. Some outlets also offer apparel and footwear, consumer electronics, consumer
appliances and giftware.
▪ While department stores remains the default channel of mixed retailers in Bangladesh, variety
stores is emerging robustly. These retail outlets are seen as modern and intriguing by many
urban young professionals, although the category’s development has been hampered by the
business capital crisis that many small independent retail businesses operating in Bangladesh
have faced since the onset of the COVID-19 pandemic. The main appeal of variety stores is
the comprehensive range of products on offer, including beauty and personal care, grocery
items, toys and games, consumer electronics, giftware, luggage and other travel goods and
wide variety of leisure items and personal goods. Reasonable prices are another major draw
for less affluent consumers, although it should be noted that variety stores have so far proven
popular among consumers of all income levels.
▪ There are very few mass merchandisers present in Bangladesh and this is linked to the
substantial financial investment required to open such an outlet and high operating costs.
Although it is likely that there would be a large and enthusiastic consumer base for mass
merchandisers, most consumers continue to prefer variety stores, which have a price
advantage over warehouse clubs due to lower overheads. Furthermore, large-format retailers
continue to struggle to find suitable premises in busy urban areas due to high population
density and a lack of suitable or retail spaces. With the out-of-town retail economy still at a
very early stage of development in Bangladesh, and with traffic congestion remaining a major
factor encouraging people to shop as locally as possible, variety stores is likely to maintain a
huge advantage over mass merchandisers for the foreseeable future. Warehouse clubs
meanwhile are not yet present in Bangladesh. However, it is likely that these outlets could find
favour in the country where traditional open markets of long been the retail channel of choice
for many among the country’s low-income majority.
▪ Demand for department stores is rising as urbanisation and rising income levels continue to
support the expansion of Bangladesh’s middle-income group. More consumers are thus
becoming interested in non-essential purchases, including the types of products offered by
department stores. In particular, demand continues to rise for beauty and personal care as it
becomes increasingly important to maintain an attractive and well-groomed appearance,
especially among affluent young urban consumers.
▪ Another factor which makes department stores popular among affluent consumers is that they
are synonymous with high-quality products and guaranteed authenticity. This also helps
department stores to justify their higher prices. In addition, affluent consumers appreciate
department stores for their wide product ranges and the convenience that they are perceived
to offer, particularly as very high population density in urban areas and traffic congestion
make travelling across town problematic in all of Bangladesh’s major cities.
▪ Department stores tend to experience significant increases in sales in the run-up to major
social events such as Eid and Pahela Baishak. According to industry sources, sales spike
heavily in the run-up to Eid, with you-non-year increases being seen in seasonal volume and
value sales.
▪ Western brands are becoming increasingly popular among the customers of Bangladesh’s
department stores and this is linked to the increasingly widespread belief that Western brands
offer better quality, especially when it comes to beauty and personal care.
▪ Mixed retailers faces growing competition from the rise of e-commerce, with informal online
sales posing particularly significant challenges. However, while social media is increasingly
being used as an informal online sales forum, especially Facebook, the online fraud epidemic
which struck Bangladesh during 2020 and 2021 has undermined consumer trust in e-
commerce generally, especially s-commerce. This has resulted in most e-commerce
consumers choosing to pay cash on delivery for their online orders. Moreover, many affluent
Bangladeshis inherently prefer shopping in department stores to shopping online as this
makes it possible for them to see, feel and experience products first-hand as well as giving
them access to trained professional sales assistants for advice and support. Furthermore,
many affluent consumers increasingly view shopping in department stores as an enjoyable
leisure activity in its own right.
▪ Mustafa remains the leading name in the mixed retailers in Bangladesh. The Mustafa
department store has its roots in Singapore and is one of the most iconic retail outlets in
Dhaka, offering a wide range of apparel and footwear, sports goods and toys and games. The
Mustafa department store is based in Bashundhara City Mall and has a premium positioning.
It is viewed as offering a prestigious, high-quality shopping experience, which has made it
popular among affluent consumers despite its reputation for very high prices.
▪ Almas Super Shop is one of the leading brands in mixed retailers and the chained retailer
benefits from its strong reputation for superior customer service and its offer of a wide range
of high-quality products. The retailer’s main outlet is located at Gulshan-1 in Dhaka and its
owner is the only company to operate numerous branded mixed retailers outlets. All Alma’s
Super Shops are located in Dhaka, offering an extensive range of products including
jewellery, apparel and footwear, toys and games, personal accessories, packaged food,
stationery and media products as well as homewares, beauty and personal care and tissue
and hygiene items.
▪ Japanese variety stores brand Mini So was launched in Bangladesh during the review period
and its outlet network expanded rapidly during the following years. Mini So is currently
operating independently in Bangladesh and it is expected that the ongoing expansion of the
chain’s footprint in the country will result in higher levels of competition in mixed retailers.
▪ The Almas Super Shop and Mini So chains are likely to experience further expansion during
the forecast period, while new mixed retailers chains are expected to emerge. The stores
operated under these names tend to be franchised outlets operated by entrepreneurs who are
keen to cater to emerging consumer demand trends. Furthermore, as interest in non-essential
goods and demand for convenience intensifies among the swelling ranks of Bangladesh’s
mid- and high-income urban consumers, more independent department stores are expected
to open additional outlets to cater to the needs of this crucial target audience.

▪ The forecast period is expected to see positive sales growth for mixed retailers, with
consumers set to become increasingly interested in shopping in these types of stores as the
impact of the COVID-19 pandemic wanes. In addition, urbanisation, population growth and
rising incomes combine to provide a favourable backdrop for the development of
Bangladesh’s leading department stores. Retailers operating in the channel are set to
continue benefiting from their reputation for high quality and the value that affluent
Bangladeshis place on the expert advice of trained sales staff. Furthermore, the wide ranges
of products on offer are set to remain highly appealing. As a result, more department stores
are expected to open during the forecast period, mainly located in shopping centres located in
suburban areas on the periphery of the country’s largest cities.
▪ While warehouse clubs and mass merchandisers are not expected to appear in the
Bangladeshi retailing landscape before the end of the forecast period, variety stores is one
category of mixed retailers that has strong potential for rapid and dynamic growth. The
extremely wide variety of both grocery and non-grocery products that variety stores offer at
low prices is a concept that has strong potential to appeal to a wide variety of local consumers
and the ongoing development of chains such as Almas Super Ship and Miniso is likely to
underpin rapid expansion for variety stores in Bangladesh during the forecast period.
Channel Data
Table 57 Mixed Retailers: Value Sales, Outlets and Selling Space 2016-2021
2016 2017 2018 2019 2020 2021
Outlets 95.0 107.0 119.0 131.0 132.0 139.0
Table 58 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2016-2021
% growth
2020/21 2016-21 CAGR 2016/21 Total
Value sales BDT million -8.0 -3.9 -18.1

Outlets 5.3 7.9 46.3
Table 59 Sales in Mixed Retailers by Channel: Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
- Department Stores 31,768.9 35,200.7 39,089.3 43,675.1 28,284.7 26,021.9

- Mass Merchandisers - - - - - -
- Variety Stores - - - - - -
- Warehouse Clubs - - - - - -
Mixed Retailers 31,768.9 35,200.7 39,089.3 43,675.1 28,284.7 26,021.9
Table 60 Sales in Mixed Retailers by Channel: % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
- Department Stores -8.0 -3.9 -18.1

- Mass Merchandisers - - -
- Variety Stores - - -
- Warehouse Clubs - - -
Mixed Retailers -8.0 -3.9 -18.1
Table 61 Mixed Retailers Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021
- Department Stores 95.0 107.0 119.0 131.0 132.0 139.0

Mixed Retailers 95.0 107.0 119.0 131.0 132.0 139.0
Table 62 Mixed Retailers Outlets by Channel: % Unit Growth 2016-2021
% unit growth
2020/21 2016-21 CAGR 2016/21 Total
- Department Stores 5.3 7.9 46.3

Table 63 Mixed Retailers GBO Company Shares: % Value 2017-2021

Company 2017 2018 2019 2020 2021
Mustafa Mart Pvt Ltd 2.3 2.0 1.8 1.8 1.7

Others 97.7 98.0 98.2 98.2 98.3
Total 100.0 100.0 100.0 100.0 100.0
Table 64 Mixed Retailers GBN Brand Shares: % Value 2018-2021

Mustafa Mustafa Mart Pvt Ltd 2.0 1.8 1.8 1.7

Others 98.0 98.2 98.2 98.3
Total 100.0 100.0 100.0 100.0
Table 65 Mixed Retailers LBN Brand Shares: Outlets 2018-2021
sites/outlets
Mustafa Mustafa Mart Pvt Ltd 1 1 1 1

Others Others 118 130 131 138
Total Total 119 131 132 139
Table 66 Mixed Retailers LBN Brand Shares: Selling Space 2018-2021

Mustafa Mustafa Mart Pvt Ltd 6.0 6.0 6.0 6.0

Others Others 352.3 390.0 395.7 416.3
Total Total 358.3 396.0 401.7 422.3
Table 67 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2021-2026
2021 2022 2023 2024 2025 2026
Outlets 139.0 156.0 167.0 175.0 183.0 191.0
trade sources
Note: Forecast value data in constant terms
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth
2021-2026
% growth
2021/22 2021-26 CAGR 2021/26 Total

Outlets 12.2 6.6 37.4
trade sources
Table 69 Forecast Sales in Mixed Retailers by Channel: Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026
- Department Stores 26,021.9 37,731.8 42,259.6 44,372.6 46,369.3 48,224.1

Mixed Retailers 26,021.9 37,731.8 42,259.6 44,372.6 46,369.3 48,224.1
trade sources
Table 70 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2021-2026
2021/2022 2021-26 CAGR 2021/26 Total

trade sources
Table 71 Forecast Mixed Retailers Outlets by Channel: Units 2021-2026
outlet
2021 2022 2023 2024 2025 2026
- Department Stores 139.0 156.0 167.0 175.0 183.0 191.0

Mixed Retailers 139.0 156.0 167.0 175.0 183.0 191.0
Table 72 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2021-2026
% unit growth
2021/22 2021-26 CAGR 2021/26 Total

DIRECT SELLING
2021 Developments
▪ Direct selling is present in Bangladesh, although the areas players that account for the bulk of
sales in the category continue to struggle in their efforts to establish direct selling as a
mainstream retailing channel. Direct selling companies operating in the country face a number
of constraints, including heavy competition from informal direct selling. Many informal retailers
call door-to-door in residential areas, offering a wide range of goods. Consumers are
generally more likely to trust a well-known friend or family member engaging in informal direct
selling than they would be to trust an unfamiliar direct selling representative, even if they were
representing well-known brands. Online direct selling is also becoming increasing common in
major urban areas, although it is increasingly being overshadowed by the rise of informal e-
commerce via social media.
▪ Despite the challenges that the channel faces, direct selling is becoming increasingly popular
in Bangladesh. Direct selling is an especially popular activity among women, although most of
these people continue to operate their direct selling businesses informally. In rural areas,
working as an informal direct selling agent can enable individuals to make a significant
contribution to their overall household income and this makes it popular, especially as there
are often few alternative sources of employment in such areas. In addition, the customer base
for direct selling is predominantly female, with a strong focus on beauty and personal care
across the channel.
▪ The prevalence of informal direct selling continues to have a detrimental impact on the
reputations of formal direct selling companies. For instance, many consumers automatically
associate door-to-door selling with counterfeit products and less than completely open and
honest sales pitches. It is common for householders to refuse to let strangers into the yards,
while hawkers and informal direct selling agents are routinely banned from entering business
premises.
▪ Moreover, many consumers have unfortunate memories of a major scandal surrounding direct
selling that was a huge new story in Bangladesh several years ago. Destiny Group had been
operating in the country in multilevel marketing and the company was found to be acting
fraudulently, with the resultant scandal leading directly to the introduction of new legislation.
The Multilevel Marketing Activities (Control) Ordinance proposed prison sentences of 10
years for those found to be operating multilevel marketing businesses without a licence. This
legislation has unfortunately also placed limits on the ability of legitimate multilevel marketing
direct selling companies to offer home care, consumer electronics, consumer appliances,
beauty and personal care items, herbal/traditional medicines, telecommunications services,
training-related products and services and agricultural goods. The authorities have also
withdrawn multilevel marketing licences from a number of companies in response to poor
business practices, including MXN Modern Herbal Food and World Mission 21.
▪ Recent years have seen informal e-commerce via social media platforms, particularly
Facebook, substantially erode the position of legitimate direct selling companies, few of whom
have so far been able to harness the power of the internet to develop their operations in
Bangladesh. The global leaders in direct selling have little country-specific social media
presence in Bangladesh, although some of the more ambitious and successful direct selling
representatives have their own unofficial Facebook pages, using them to arrange face-to-face
meetings with potential customers and to sell products, with cash-on-delivery the normal
payment method for such transactions.
▪ The leading brands in direct selling are strong global names that mainly target female
consumers. Amway is a major player, benefiting from its first-mover advantage due to its early
entry into Bangladesh in 2007. Herbalife Nutrition is another important player in direct selling
in Bangladesh. However, it should be noted that the considerably higher prices charged for
the products offered under these brands means that they are able to generate high value
sales from moderate volume sales.
▪ While Amway offers a relatively wide range of products via direct selling across numerous
consumer goods industries including beauty and personal care, consumer health and home
care, Herbalife Nutrition focuses almost exclusively on consumer health, offering mainly
weight management and wellbeing, vitamins and dietary supplements and sports nutrition.
▪ Apart from these two leading players, the competitive environment in direct selling is highly
fragmented. Sales are divided among numerous small local entrepreneurs that have been
attracted to the channel by low overheads and the promise of strong sales growth.

▪ While direct selling is expected to generate strong growth over the forecast period, the
channel is unlikely to enter the mainstream before the end of 2026. Nonetheless, the leading
international direct selling brands have the potential to attract growing numbers of affluent
urban professionals, especially female consumers, as the numbers of women in Bangladesh’s
workforce continue to increase. Moreover, more stringent government regulation of direct
selling is likely to result in consumer trust in the channel building strongly.
▪ Numerous start-ups are expected to be launched in direct selling during the forecast period as
ambitious entrepreneurs seek to capitalise on growing demand for a wide range of consumer
goods among the swelling ranks of Bangladesh’s mid-income consumers via this low-
overhead channel. The consumer base for direct selling is expected to expand, in line with the
wider range of products on offer. However, sales in the channel are set to continue being
driven mainly by women, with beauty and personal care and consumer healthcare set to
remain the most popular categories as a result.
E-COMMERCE (GOODS)
2021 Developments
▪ Dramatic growth was recorded in e-commerce in Bangladesh during 2020, with further strong
growth recorded in 2021 as consumers flocked online shopping as a way of avoiding coming
into contact with the COVID-19 virus. In addition to the opportunity to shop for a
comprehensive range of products without needing to interact directly with other people,
among the most appealing aspects of e-commerce for most consumers are low prices and the
convenience that home delivery represents. This convenience aspect applies as much to
consumers living in rural parts of the country as it does to those living in major urban areas
such as Dhaka, Chittagong and Sylhet, with the absence of non-grocery retailers outlets in
more remote areas of the country meaning that there are many consumers who would benefit
from being able to order products online to be delivered to their homes.
▪ Even before the onset of the COVID-19 pandemic, E-commerce was attracting growing
numbers of consumers in Bangladesh. Widening internet access, mainly due to rising
smartphone penetration, and the increasing affordability of mobile internet connections. While
sales are fairly consistent throughout the year, demand for e-commerce tends to pick up in
the run-up to key celebrations and festivals such as Eid.
▪ It should be noted that much of the e-commerce being undertaken in Bangladesh informal in
nature, with s-commerce accounting for a huge proportion of total revenues generated
through online commerce in the country. As with informal store-based retailing, the main
attraction of informal e-commerce is lower prices, with consumers generally willing to overlook
the likelihood that they will be purchasing products of inferior quality or counterfeit brands for
the sake of economy.
▪ The prevalence of informal e-commerce was a major factor underpinning the online fraud
crisis that engulfed Bangladeshi society towards the end of the review period, with very many
consumers losing money to online fraudsters operating via Facebook and other social media
platforms. In addition to widespread fraud among informal e-commerce operators, some e-
commerce companies that purported to operate legitimately such as Evaly and Alisha Mart
have also been caught defrauding customers, with these cases now being dealt with by
government agencies and the courts. In response to the threat of online fraud, many
consumers refuse to engage with e-commerce at all, unless the retailer offers cash on
delivery as a payment method.
▪ While this online fraud epidemic definitely undermined consumer confidence in e-commerce
generally, it also had the effect of driving consumers towards formal e-commerce. Apparel
and footwear and beauty and personal care remain the most popular product categories in e-
commerce, although the range of products being purchased via the channel expanded
substantially during the COVID-19 pandemic and is likely to continue expanding as demand
increases.
▪ Formal e-commerce is conducted via to two main formats. The first is the websites of major
online retailers such as Daraz.com and online grocery specialist Chaldal.com. The second is
online marketplaces, which tend to generate far more interest among consumers due to their
reputations for lower prices. Leading players in this area include Daraz, Ajker Deal and
Rokomari.
▪ Research conducted by online retailers suggests that considerably more than half of
Bangladesh’s e-commerce consumers are men aged between 25 and 34 years old. Middle-
aged and elderly Bangladeshis generally do not feel comfortable engaging with e-commerce
because few of them are familiar with the internet. Furthermore, e-commerce sales are
heavily dominated by urban consumers and this is because relatively few people living in rural
areas have access to the internet.
▪ The development of e-commerce continues to be hampered by poor communications
infrastructure, despite major improvements to the country’s mobile telecommunications
networks in recent years. Fixed-line internet speeds remain low in most parts of the country,
which can make it difficult and frustrating to use the internet, including for purchasing goods
via e-commerce. The majority of people using a fixed-line connection to go online in
Bangladesh are accessing the internet via a desktop computer or laptop, while only around
one-third of them using a mobile phone or tablet.
▪ Another factor hindering the development of e-commerce is that deliveries can be
problematic. In particular, the state post office is viewed as unreliable, with most sellers
instead preferring to use private couriers to complete their deliveries. There is also a strong
preference for cash on delivery the payment method and this is linked to widespread
concerns over the security of online payments. Moreover, few consumers have a financial
card, while there is also general reluctance pay remotely. E-commerce retailers that do not
accept cash-on-delivery as a payment method thus remain at a major disadvantage,
particularly in comparison with informal sellers operating on Facebook, all of whom accept
cash on delivery.
▪ Faced with the very rapid development of e-commerce, during the review period the
government of Bangladesh issued an official policy on digital commerce to facilitate the
development of online businesses in the country. Among the main aims of this policy are to
make digital transactions as safe and as secure as possible in order to build consumer trust in
online payments and e-commerce. Under this policy, e-commerce is banned for foreign
companies that have not first formed a joint venture with a local company. The policy’s
overriding aim is to establish a nationwide digital commerce system via the use of information
and communication technology and to transform the country’s commerce and trade by
integrating digital processes, bringing Bangladesh into line with emerging international
standards. The policy is expected to provide a strong boost to the development of e-
commerce over the forecast period while also making e-commerce in Bangladesh a more
attractive investment proposition for foreign companies.
▪ While relatively few of Bangladesh’s store-based retailers operate e-commerce sites,
significant numbers of the country’s store-based retailers made their first forays into e-
commerce during the COVID-19 pandemic. Chained grocery retailers Shwapno and Meena
Bazar are among the handful of store-based retailing players that have launched their own
internet retailing sites, although the home delivery reach of these retailers remains limited.
Shwapno for instance only delivers in Dhaka, while Meena Bazar delivers in other major cities
such as Chittagong. Neither Shwapno nor Meena Bazar accept cash-on-delivery payments
for orders however, which limits their potential consumer audience to the few affluent
consumers with financial cards.
▪ Online marketplaces on the other hand have so far proven highly successful. The leaders in
this area include Daraz, Ajker Deal and Rokomari. Chaldal.com meanwhile has also
experienced success as an online grocery specialist.
▪ Alibaba-owned Daraz Group is the owner of leading Bangladesh-based e-commerce player
Daraz, which also operates in several other South Asian countries. Alibaba is a China-based
global e-commerce giant and its ownership of Daraz has had a major impact on the
development of e-commerce in Bangladesh.
▪ There has been some interest among US-based global e-commerce giant Amazon and
Walmart, the US-based global leader in store-based retailing, to enter Bangladesh. This is a
clear sign that global retail companies are increasingly interested in making forays into what is
widely perceived as a market with huge growth potential, according to trade sources. Walmart
has already developed a very large office in Dhaka in anticipation of its entry into the country,
while Amazon is already in talks with government officials ahead of its launch in the country,
according to senior figures at e-commerce trade body e-Cab.

▪ The forecast period is expected to see e-commerce continue to develop robustly in
Bangladesh. Among the factors that are expected to underpin this strong growth are the
country's young population and surging interest in social media, with the higher penetration of
smartphones and wider access to the internet set to prove crucial to the widening of the
consumer audience for e-commerce in general and s-commerce in particular. Growth is set to
be driven mainly by m-commerce, with the expansion and development of the country’s 5G
mobile network the major factor underpinning the spread of mobile internet usage.
Additionally, the government project Connected Bangladesh, part of the Vision 2021 initiative,
has expanded optical fibre networks to many of the country’s more remote rural areas, thus
improving internet access for rural dwellers. The government is also establishing a second
submarine cable to provide uninterrupted internet service, further improving the
communications infrastructure and presenting new opportunities to e-commerce.
▪ Central to the growth and development of e-commerce in Bangladesh during the forecast
period is set to be the rapid adoption of e-commerce among those living in rural parts of the
country. The availability of a comprehensive range of grocery and non-grocery products and
the ability to have these products delivered has the potential to prove revolutionary for
consumers living in more remote parts of Bangladesh, who have traditionally not had any
access to such a wide variety of products in their local stores.
▪ In light of the high levels of consumer concern about the potential for e-commerce to
contribute to online fraud, new e-commerce guidelines were published by the relevant
authorities in 2021 and these guidelines are likely to ensure greater transparency and
accountability in e-commerce during the forecast period. The aims of the government in
publishing as guidelines are to protect the rights of consumers and to generate employment
opportunities via the expansion of digital businesses. This is likely to result in higher levels of
consumer confidence in e-commerce generally, especially in the informal and semi-formal
types of commerce that generally take place on social media platforms such as Facebook.
▪ In addition, higher levels of formality are set to be seen across e-commerce as growing
numbers of entrepreneurs currently engaged in informal online retailing begin using online
marketplaces as a way of formalising their operations. Many of the country’s leading chained
store-based retailers meanwhile can be expected to launch their own e-commerce websites
during the forecast period. However, e-commerce is likely to remain dominated by informal
vendors buying and selling goods via Facebook and other social media platforms.
▪ Daraz is expected to remain the leading name in e-commerce in Bangladesh throughout the
forecast period, with the company’s foreign ownership likely to prove instrumental in its
success. Daraz has been able to maintain high levels of consumer trust despite the impact of
the online fraud scandal, and the company is well-placed to compete strongly with Amazon,
which is expected to become a major player in e-commerce in Bangladesh during the forecast
period.
Channel Data
Table 73 Sales in E-Commerce (Goods): Value 2016-2021
BDT million
2016 2017 2018 2019 2020 2021
E-Commerce (Goods) 6,000.0 14,400.0 42,000.0 96,348.0 169,911.0 186,902.1

Note: Mobile e-commerce (goods) and cross-border e-commerce (goods) not included in e-commerce (goods)
total to avoid double counting.
Table 74 Sales in E-Commerce (Goods): % Value Growth 2016-2021
2020/21 2016-21 CAGR 2016/21 Total
E-Commerce (Goods) 10.0 98.9 3,015.0

Note: Mobile e-commerce (goods) and cross-border e-commerce (goods) not included in e-commerce (goods)
Table 75 Forecast Sales in E-Commerce (Goods): Value 2021-2026
BDT million
2021 2022 2023 2024 2025 2026
E-Commerce (Goods) 186,902.1 188,771.1 207,648.2 226,336.6 245,575.2 265,221.2

trade sources
Note 1: Mobile e-commerce (goods) and cross-border e-commerce (goods) not included in e-commerce (goods)
Table 76 Forecast Sales in E-Commerce (Goods): % Value Growth 2021-2026
2021/2022 2021-26 CAGR 2021/26 Total
E-Commerce (Goods) 1.0 7.3 41.9

trade sources
Note 1: Mobile e-commerce (goods) and cross-border e-commerce (goods) not included in e-commerce (goods)
HOMESHOPPING
2021 Developments
▪ Homeshopping has never developed into a significant retail channel in Bangladesh and
demand remains limited to relatively few mid- and high-income female consumers living in
major urban areas. There are some catalogue homeshopping players active in the country,
while satellite TV channels such as Bengal Digital host some TV homeshopping channels.
Nevertheless, consumer awareness of homeshopping remains limited, while the few
consumers who have some awareness of homeshopping are often reluctant to place their
trust in the quality and service on offer in the channel. There are also widespread concerns
over the reliability of the home delivery of products ordered via homeshopping due to the
country’s inadequate and inconsistent system, which also has implications for returning
defective or unwanted goods and receiving refunds.
▪ The strong emergence of e-commerce in recent years has placed considerable pressure on
homeshopping due to the high levels of competition that e-commerce presents to the channel.
The limited numbers of mid- to high-income consumers who previously formed the core
consumer base for homeshopping are increasingly shifting towards e-commerce, with the
reading players in homeshopping increasingly focusing on online sales in response.
▪ Homeshopping remains a highly fragmented retailing channel, and it is very difficult to identify
any strong leaders in terms of sales. Most of the players present in the category focus mainly
on consumer health, apparel and footwear or homewares and home furnishings.

▪ Homeshopping is unlikely to emerge as a significant retail channel in Bangladesh before the
end of the forecast period. The channel is struggling to attract new entrants as investors are
increasingly focusing on e-commerce and modern store-based retailing in a bid to capitalise
on dynamic and expanding channels that appeal to key consumer groups such as aspirational
mid-income urban-dwellers. Although some of the country’s store-based retailers are likely to
continue using catalogues to reach out to a wider consumer audience, notably in areas such
as homewares and home furnishings and consumer health, purchases are increasingly likely
to be completed in stores or online, rather than via homeshopping.
▪ One issue that homeshopping players continue to struggle with is the general preference
among Bangladeshi consumers to gain personal experience of products before they commit
to a purchase. Most people still prefer to physically see and touch products before they buy,
with a physical presence in store-based retailing remaining vital to success in the country’s
retailing industry. This, combined with the general lack of trust in homeshopping among most
consumers, place significant limits on the category’s general appeal.
VENDING
2021 Developments
▪ Vending remains an insignificant retail channel in Bangladesh. The few vending machines
that are present in the country are usually located behind counters and operated by sales
assistants, rather than being self-service vending machines, excluding them from the scope of
Euromonitor International research. This mode of vending is generally a response to concerns
over the threat of theft or vandalism or the desire to eliminate the use of counterfeit currency
as payment. Furthermore, generally speaking, people feel more comfortable using vending
machines that are located behind retail counters as this has long been a key element of local
vending culture.
▪ Vending machines in Bangladesh typically sell hot drinks, mainly coffee, or confectionery and
they are typically found behind the counters of traditional grocery retailers or public transport
interchanges in major cities. Growing numbers of vending machines are also being seen in
captive locations such as factories, offices, universities and colleges, although these vending
machines in captive locations are also excluded from the scope of the research undertaken in
the preparation of this report.
▪ There are some vending machines present in semi-captive locations such as hotels and
airports. These offer mainly packaged drinks, with some offering hot drinks. However, with the
prices charged in these machines generally very high by local standards, they cater mainly to
foreign tourists, expatriates and high-income locals.
▪ Very little in the way of innovation was seen in vending during the review period and this is a
reflection of the channel’s niche status. The lack of general vending culture in Bangladesh
means that many consumers, specifically middle-aged and elderly people, are unfamiliar with
modern self-service technology and thus feel uncomfortable using vending machines. Another
major factor presenting challenges to the further penetration of vending machines is the
inconsistent and unreliable electricity supply. Although the situation with regards electricity
supply is improving, it is unlikely to improve to the extent that vending becomes more
widespread before the end of the forecast period.

▪ Vending is not expected to emerge strongly as a retailing channel in Bangladesh during the
forecast period. Indeed, vending has a long way to go before it enters the mainstream. It is
likely that the majority of vending machines in the country will continue to be located behind
counters and being operated by sales staff. Ongoing developments in retailing and consumer
foodservice are also likely to result in declines being seen in the overall numbers of vending
machines in Bangladesh over the forecast period.

Retailing in Bangladesh 2021

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Retailing in Bangladesh 2021

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Retailing in Bangladesh

LIST OF CONTENTS AND TABLES

Table 45 Sales in Non-Grocery Specialists by Channel: % Value Growth 2016-

2021 Developments ................................................................................................................ 50

Retailing in 2021: The big picture

What next for retailing?

Chart 1 Retailing: Traditional Non-Grocery Retailer

Source: Euromonitor International

Chart 2 Retailing: Traditional Grocery Retailer

Source: Euromonitor International

Chart 3 Retailing: Apparel and Footwear Specialist Retailer

Source: Euromonitor International

Chart 4 Retailing: Apparel and Footwear Specialist Retailer

Source: Euromonitor International

Store-Based Retailing 2,301,73 2,577,54 2,865,61 3,185,68 3,157,10 3,333,79

Non-Store Retailing 6,000.0 14,400.0 42,000.0 96,348.0 169,911.0 186,902.1

Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2016-2021

% current value growth, retail value rsp excl sales tax

2020/21 2016-21 CAGR 2016/21 Total

Store-Based Retailing 5.6 7.7 44.8

Table 3 Sales in Store-Based Retailing by Channel: Value 2016-2021

Grocery Retailers 1,825,30 2,055,99 2,294,15 2,556,38 2,671,17 2,846,41

Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2016-2021

% current value growth, retail value rsp excl sales tax

2020/21 2016-21 CAGR 2016/21 Total

Grocery Retailers 6.6 9.3 55.9

Table 5 Store-Based Retailing Outlets by Channel: Units 2016-2021

Grocery Retailers 702,077.0 705,503.0 708,903.0 712,247.0 713,320.0 717,991.0

Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2016-2021

Grocery Retailers 0.7 0.4 2.3

Table 7 Sales in Non-Store Retailing by Channel: Value 2016-2021

Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2016-2021

% current value growth, retail value rsp excl sales tax

2020/21 2016-21 CAGR 2016/21 Total

Table 9 Retailing GBO Company Shares: % Value 2017-2021

% retail value rsp excl sales tax

ACI Ltd 0.3 0.4 0.4 0.4 0.5

Table 10 Retailing GBN Brand Shares: % Value 2018-2021

% retail value rsp excl sales tax

Shwapno ACI Ltd 0.4 0.4 0.4 0.5

Table 11 Store-based Retailing GBO Company Shares: % Value 2017-2021

% retail value rsp excl sales tax

ACI Ltd 0.3 0.4 0.4 0.5 0.6

Table 12 Store-based Retailing GBN Brand Shares: % Value 2018-2021

% retail value rsp excl sales tax

Brand Company (GBO) 2018 2019 2020 2021

Shwapno ACI Ltd 0.4 0.4 0.5 0.6

Table 13 Store-based Retailing LBN Brand Shares: Outlets 2018-2021

Walton Plaza Walton Group 354 368 372 372

Table 14 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2021-2026

Store-Based Retailing 3,333,79 3,574,27 3,725,95 3,838,73 3,943,21 4,041,72

Table 15 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth

% constant value growth, retail value rsp excl sales tax

2021/2022 2021-26 CAGR 2021/26 Total

Store-Based Retailing 7.2 3.9 21.2

Table 16 Forecast Sales in Store-Based Retailing by Channel: Value 2021-2026

2021 2022 2023 2024 2025 2026

Grocery Retailers 2,846,41 3,018,41 3,125,37 3,214,39 3,296,22 3,373,41

Table 17 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2021-

% constant value growth, retail value rsp excl sales tax

2021/2022 2021-26 CAGR 2021/26 Total

Grocery Retailers 6.0 3.5 18.5

Table 18 Forecast Store-Based Retailing Outlets by Channel: Units 2021-2026

Grocery Retailers 717,991.0 721,961.0 725,078.0 727,991.0 730,915.0 733,632.0