Karnaphuli Garden City closes as older Dhaka malls struggle
Dhaka: Karnaphuli Garden City Shopping Complex in Dhaka's Kakrail area has shut down after years of declining sales, with at least 10 other older shopping complexes in the capital facing a similar fate.
Opened in 1998, the complex closed on October 1 with only 25 of its 198 shops operating, according to its owners' association.
The complex occupied the basement and first four floors of a 20-story building, with residential apartments above. It housed shops selling garments, shoes, cosmetics, jewelry, and other goods along with a food court. The closure does not affect the residential apartments, authorities said.
The owners have unanimously decided to sell the property. AKM Iqbal, President of Karnaphuli Garden City Shop Owners' Association, said it could become a hospital, a diagnostic center, a television center, or another type of office.
A handful of shops near the entrance remain open to generate rental income for essential expenses, including the salaries of security guards and a manager. The owners are even borrowing money to cover these costs, Iqbal said.
He said new malls, branded outlets, and online shopping have given customers more choices. Declining footfall has made it harder for shop owners to cover rent, service charges, salaries, and electricity bills.
Concord Twin Tower in nearby Shantinagar is also struggling. Reports suggested it might close, but its owners later backed away from the idea. Syed Sharif Uddin, joint secretary of its owners' association, said no decision has been taken to shut it down.
Md. Helal Uddin, President of Bangladesh Dokan Malik Samity, said shopping markets have been in a severe downturn for nearly two to two and a half years. Some shopkeepers go three to five consecutive days without a sale.
Many businesses can no longer pay staff from their earnings and are dipping into their capital, he said, adding that two or three more markets could close within two to three months if conditions do not improve.
Helal said representatives of two markets, each with around 300 shops, recently told him they could no longer sustain their businesses. He also claimed small and medium-sized businesses have received little government support since the Covid-19 pandemic.
The association also named Molla Tower in Rampura and Bishal Centre in Maghbazar as struggling. It estimated that another 10 to 12 shopping centers face a serious risk of closure but declined to name them.
Closures could wipe out investments worth hundreds of crores of taka and leave thousands of workers jobless, Helal Uddin warned. He cited Karnaphuli Market, which employed around 3,000 workers.
