Traders in the Central Business District (CBD) in Accra say sales ahead of the Christmas festivities remain slow and uncertain, despite heavy human traffic in the market, raising concerns about consumer spending and its broader impact on businesses and the local economy.
Although the Christmas season is traditionally marked by heightened commercial activity, many traders said this year’s festivities had brought mixed feelings, as customer presence had not translated into actual purchases.
A visit to the CBD revealed bustling streets and crowded stalls, but traders reported that buyers were largely window-shopping, reflecting constrained household budgets and cautious consumer behaviour.
Mr. Ezekiel Osei, a trader in Christmas decorations, said sales had fallen short of expectations but expressed cautious optimism.
“Sales are not coming as I anticipated, but it is not too bad. I believe that before December 25, I will make enough sales,” he said.
Madam Esther Awoyaa, a second-hand clothing dealer, described business as very poor, noting that even recent price reductions had failed to stimulate demand.
She explained that although the cedi had appreciated and the dollar weakened, leading to lower import costs customers were still holding back.
“I sold just two clothes the day before yesterday, and the money went into food and transport that same day. As of today, I have not sold anything,” she said.
Another second-hand clothing seller, Madam Joyce Owusu, said sales were stronger last Christmas despite higher prices.
“Last December, prices were high, but I sold well. This year, prices are lower and the market is crowded, but sales are not coming,” she noted.
The subdued festive sales point to lingering pressure on household incomes, as consumers prioritise essentials such as food, transport and utilities over discretionary spending.
However, economists say this cautious spending pattern could affect small and medium-sized enterprises (SMEs), many of which rely on the Christmas season to recover costs, service loans and restock for the new year.
For the broader economy, weak festive sales could translate into slower turnover for informal businesses, reduced cash flow and lower short-term tax and levy collections from trading activities.
It may also dampen expectations of a strong end-year boost to economic activity, particularly in retail, wholesale and transport sectors.
Traders, however, remain hopeful that sales will improve in the days leading up to Christmas, as last-minute shopping traditionally peaks closer to December 25.
Many say a pickup in consumer confidence and disposable income will be critical to sustaining small businesses and supporting economic activity during the festive period and beyond.
