Karnaphuli Garden City in Dhaka closes, what led to its closure?

Karnaphuli Garden City shopping complex opened in Kakrail, Dhaka, towards the end of the last century. At the time, the upscale shopping centre attracted middle- and upper-income shoppers looking for clothes, shoes, cosmetics, jewellery and various other products.

However, over the years, the complex gradually lost customers for several reasons. Sales fell so sharply that shop owners decided to close the entire shopping centre on 1 October.

During a visit to Karnaphuli Garden City shopping complex on Monday afternoon, the main entrance was found shuttered. A PVC banner hanging above it read, “The shopping complex will remain closed from 1 October.”

Although the main entrance was closed, six or seven shops on either side and an ATM booth remained open. Four or five customers were seen at two of the food outlets.

An inquiry revealed that Karnaphuli Garden City shopping complex opened in 1998, occupying the basement and four floors of a 20-storey building. The remaining floors housed apartments.

The Karnaphuli Group developed the complex, and 125 businesspeople purchased ownership rights to its 198 shops. With customers no longer visiting in sufficient numbers, the shop owners unanimously decided to close the complex and sell their ownership interests.

Leaders of the Karnaphuli Garden City Shop Owners’ Association said the complex initially housed shops selling ready-made garments, shoes, cosmetics, tailoring services, jewellery and various other products.

The fourth floor housed a food court. Although the complex had 198 shops, only 25 remained operational before its closure.

On the left side of the complex are outlets of Kacchi Bhai, a very popular kacchi chain, and Hot Cake. A Raymond outlet stands on the other side.

Mohammad Mamun, an employee at the Raymond outlet, said, “Although the market has closed, the owner of our shop has not yet served us any notice. We will have to leave if the owner gives us notice.”

Jahidul Islam, owner of Gyan Bichitra, a coffee shop next to Raymond, said, “Business is not doing well because the market has closed. We will also vacate our shop next month.”

Meanwhile, Mizanur Rahman, manager of the Shumi’s Hot Cake outlet said, “Our shop owner has not told us anything yet. So, we are still unsure whether we will stay or leave.”

Asked about business at the complex, he said it had been without customers for a long time.

Bakibillah Osmani is the general secretary of the shop owners' association for Karnaphuli Garden City Shopping Complex, said sales at the complex had gradually declined for more than a decade.

Speaking to Prothom Alo, he said three or four main factors had left the shopping centre without customers. As a result, all the shop owners jointly decided to sell their ownership interests.

Osmani added that severe traffic congestion during the construction of the Moghbazar–Malibagh flyover over the past decade had significantly reduced the number of shoppers visiting the complex.

Several shop owners temporarily relocated their businesses to nearby markets. However, after construction of the flyover ended, they did not leave their new locations to return to the complex.

Later, the covid-19 pandemic dealt another blow, forcing more than 100 shops to close. Those shops never reopened. In addition, allegations that several cosmetics shops in the complex sold substandard products damaged its reputation.

“We have started discussions with hospitals, banks and corporate organisations about selling the market premises. We expect to finalise the sale soon,” the shop owners’ association leader said.

The Karnaphuli Group developed Karnaphuli Garden City shopping complex. Former Environment, Forest and Climate Change Minister Saber Hossain Chowdhury is associated with the group's ownership.