Innovision Consulting released a Digest to assess the economic impact of COVID-19 on the retail sector's most vital segment: Micro-Merchants. Representing a turnover of USD 18.42 billion and supporting millions of livelihoods, these merchants saw their daily average revenue crash by 70%, dropping from BDT 2,820 to just BDT 844. The study, conducted across Jamalpur, Sherpur, Sirajganj, and Tangail, highlights that 86% of respondents would be unable to continue operations if losses persist for more than two months.
74% relied solely on personal savings that were being diverted to meet basic food requirements. Innovision’s findings show that 93% of Micro-Merchants have reduced food expenditure, particularly protein, while more than half have cut spending on their children’s education.
Innovision recommends immediate interventions to safeguard the Micro-Merchants segment, including supply chain financing where banks pay suppliers directly and the provision of short-term, flexible loans. By adjusting legal frameworks to accommodate unbanked merchants, the government and private sector can ensure a faster recovery for the last-mile delivery channel of Bangladesh's economy.
Read the full report here: Link
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