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Accra Buyers Hopeful in Spite of Sluggish Christmas Sales: A Market Analysis

Date: December 21, 2025 | Category: Business & Economy / West Africa

Introduction

The bustling streets of Accra Central usually signal the start of the festive economic boom by mid-December. However, the current narrative is one of resilience rather than record-breaking revenue. Despite a visible surge in foot traffic and a crowded marketplace, the actual conversion of browsers into buyers has been slower than anticipated. This report details the on-the-ground reality of Ghana’s retail sector during the 2025 festive season, exploring the disconnect between consumer presence and spending power. While the mood among traders remains surprisingly optimistic, the economic indicators suggest a complex season for the informal retail market in Ghana.

Key Points

Market Sentiment: Retailers in Accra Central maintain a hopeful outlook despite current low sales volumes.
The Paradox of Presence: High foot traffic has not translated into proportional purchasing activity.
Price vs. Purchasing Power: A depreciation of the Cedi against the Dollar has not necessarily boosted sales, despite lower prices on some goods.
Specific Sector Struggles: Second-hand clothing (“Obroni wawu”) vendors and decoration sellers report mixed to poor results compared to previous years.
Consumer Behavior: Immediate needs (food and transport) are prioritizing discretionary festive spending.

Background

In Ghana, the Christmas season is traditionally the “Golden Quarter” for the informal retail sector. For traders in the Accra Central business district—including areas like Makola and Kantamanto—this period usually dictates their financial health for the first quarter of the following year.

The economic context for the 2025 festive season has been characterized by macroeconomic adjustments. The Ghanaian Cedi has shown fluctuations against major trading currencies, specifically the US Dollar. Historically, a weaker Cedi drives up the cost of imported goods, leading to inflation. However, recent market dynamics have seen some stabilization or even depreciation of the Dollar, theoretically increasing the purchasing power of the local currency.

Despite these macroeconomic shifts, the micro-economic reality for the average Accra shopper is defined by the general cost of living. With inflation rates affecting essential commodities, the disposable income available for non-essential items—such as festive clothing, decorations, and entertainment—has been squeezed. This report examines how traders are navigating this delicate balance.

Analysis: The Disconnect Between Foot Traffic and Revenue

The core finding from the Ghana News Agency’s recent survey of Accra Central is the “Crowd-Conumption Gap.” A visit to the markets reveals a vibrant, chaotic scene typical of the holidays. Yet, traders report that this activity is largely observational rather than transactional.

The Psychology of the “Window Shopper”

In times of economic uncertainty, consumer behavior shifts from acquisition to preservation. Shoppers are present in the markets to gauge price trends and socialize, but they are exercising extreme caution with their wallets. The statement from Madam Esther, a second-hand clothes broker, highlights this vividly: revenue generated from the few sales she made was immediately reinvested into survival costs—food and transport—rather than saved or used for further inventory.

The Price Elasticity Paradox

One of the most counter-intuitive findings is that lower prices have not necessarily stimulated higher demand. Joyce Owusu, another vendor, noted that in the previous year, prices were high but sales volume was sufficient. This year, despite lower prices (attributed to the depreciation of the dollar making imports cheaper), sales are stagnant.

This suggests that the issue is not price elasticity, but a lack of liquidity among the consumer base. If the consumers do not have money to spend, lowering prices will not unlock demand. This indicates a broader contraction in the money supply available to the average retail consumer in Accra.

The “Obroni Wawu” Market Dynamics

The second-hand clothing market, known locally as “Obroni wawu” (Dead White Man’s Clothes), is a staple of Accra’s fashion economy. These goods are imported and sold at various price points. The struggles reported by vendors like Madam Esther and Joyce Owusu reflect a shift in consumer priorities. Festive clothing is a “want,” not a “need,” and in a tight economy, it is often the first expense cut.

Practical Advice: How Traders Are Coping

Despite the bleak numbers, the mood remains hopeful. Traders in Accra Central are employing several strategies to survive the slow season and capitalize on the remaining days before Christmas.

1. The “Last-Minute” Strategy

Zekeil, a vendor of Christmas decorations, embodies the “wait-and-see” approach. His optimism is rooted in the cultural habit of last-minute shopping. In many West African markets, the bulk of festive spending happens in the final 48 to 72 hours before Christmas Day. Traders are holding onto stock, hoping that the final rush will offset the slow start.

2. Volume over Margin

To stimulate sales, some traders are accepting lower profit margins. By reducing prices to move inventory, they aim to generate cash flow to cover their own immediate expenses. While this hurts long-term profitability, it is a survival tactic to ensure they have operating capital for the new year.

3. Diversification of Payment Methods

While not explicitly mentioned in the original report, current trends in Accra suggest that traders are increasingly accepting mobile money payments to facilitate smaller, more frequent transactions. This aligns with the observation that money is being spent on food and transport—daily, small-ticket items.

4. Political Advocacy

The call to “tell Ato Forson that he is not forcing” suggests a layer of political engagement. Traders are vocal about the need for government intervention or favorable economic policies. By voicing their struggles to the media and by extension, policymakers, they hope to influence decisions that might stabilize the market or provide relief.

FAQ

Why are sales in Accra Central sluggish despite high foot traffic?

Current reports indicate that while many people are visiting the markets, they are prioritizing essential spending (food and transport) over discretionary spending (clothing and decorations). This suggests a liquidity issue among consumers rather than a lack of interest.

How does the depreciation of the US Dollar affect traders?

Generally, a weaker US Dollar makes imported goods cheaper for traders holding Cedi. However, the report notes that even with lower prices, traders are struggling. This implies that the benefit of cheaper imports is being outweighed by the consumer’s lack of spending power.

Is the second-hand clothing market still profitable?

According to vendors like Madam Esther and Joyce Owusu, the market is currently “very poor.” While there is still a customer base, the volume of sales is significantly lower than in previous years, making it difficult to cover daily operational costs.

What is the outlook for the remaining days before Christmas?

Traders remain hopeful. There is a strong cultural expectation of a “last-minute rush” where consumers, pressured by the holiday, finally spend their savings. Vendors are betting on this rush to salvage the season.

What is the role of government policy in this situation?

The traders have alluded to the “executive role” (government policy) being “unsure.” This suggests that traders are looking for clearer economic policies, stability in the exchange rate, and perhaps tax relief to encourage business activity.

Conclusion

The situation in Accra Central presents a microcosm of the broader economic challenges facing Ghana. While the visual indicators of the Christmas season—crowded streets and festive decorations—are present, the underlying economic pulse is weak. The resilience of the Accra buyer and the hope of the Accra seller are currently the only currencies keeping the market alive.

The disconnect between the high volume of potential customers and the low volume of actual sales points to a consumer base that is cautious and cash-strapped. However, the inherent optimism of the Ghanaian trader, coupled with the anticipation of the traditional last-minute shopping spree, leaves the door open for a potential turnaround in the final days leading up to December 25. The market is not dead; it is merely waiting for the right trigger to unlock the spending that is currently being held back.