Print: 02 Nov 2025
Not long ago, supermarkets in Bangladesh were seen as a luxury reserved for the elite. Today, they have become a household choice for the middle class and even the lower-middle class. What was once an exclusive trend has now evolved into a mainstream habit, reshaping the country’s retail landscape.
The sector has matured into a structured and fast-growing industry, fuelled by changing urban lifestyles, rising consumer awareness, demand for hygienic and reliable products, and the convenience of digital payments.
Industry insiders said sales at supermarkets surged significantly after the withdrawal of the separate 7.5% Value Added Tax (VAT) in February this year. Shoppers no longer need to pay VAT separately, as the retail price of products now represents the final price.
They also pointed to lifestyle changes, higher purchasing capacity, and the convenience of finding daily essentials under one roof as key factors behind the sector’s rapid growth.
According to industry insiders, Bangladesh currently has around 100 supermarkets, including 7–8 major chains. The sector employs around 22,000 people across more than 1,000 outlets, with total investments reaching around Tk10,000 crore. Key players include Shwapno, Agora, Meena Bazar, Unimart, and Daily Shopping, with Shwapno alone holding over 50% of the market share.
Supermarket owners noted that the franchise model has played a vital role in expanding business nationwide.
Sales increase after VAT exemption
Shwapno Managing Director Sabbir Hasan Nasir said sales have surged sharply since the VAT exemption. “Digitalisation will continue to drive growth. We introduced Bangladesh’s first self-checkout counters at our Gulshan outlet and plan to expand this service further based on customer response.”
He added that Shwapno adopted the franchise model in 2017–18 and has since become a frontrunner in innovative retail business models.
As of September, Shwapno operates 735 outlets across the country, of which over 646 are franchises. The company employs around 8,500 people and plans to expand to 3,000 outlets within the next five years.
Kamruzzaman Kamal, marketing director of PRAN-RFL Group, which owns Daily Shopping, said consumer trust and shopping habits have changed significantly in recent years.
“After VAT withdrawal, our sales rose by nearly 20%,” he said. Daily Shopping currently operates 86 outlets, including 34 outside Dhaka.
“We plan to open showrooms in every district by next year, and gradually expand to the upazila level. With increased technology adoption and e-commerce integration, the sector will become even more dynamic,” he added.
Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners Association, said the association played an active role in securing VAT exemption, which has boosted industry growth.
Economic perspective
M Masrur Reaz, chairman of Policy Exchange Bangladesh, said Bangladesh’s supermarket sector has huge potential as consumption rises rapidly.
“There are around 20 lakh agro-related retail shops in the country. With more working people, greater purchasing power, and lifestyle changes, supermarkets are expanding fast. The sector will grow immensely in the future,” he said.
He stressed that Bangladesh needs fiscal policy support to attract foreign direct investment. “Chain supermarkets are already ensuring product quality and modernising retail. But compared to India, Thailand, and Malaysia, Bangladesh is still at a root level. Addressing issues such as price competitiveness, product quality, and cost of doing business is critical.”
Challenges remain
Industry insiders pointed out several hurdles: high retail space rents, utility costs, unclear rental policies, lack of skilled manpower, weak wholesale markets, high transport costs, extortion, and maintaining product quality.
They stressed the need for affordable retail rents, reliable infrastructure, uninterrupted electricity and internet, and government incentives to boost investment at the district and upazila levels. Ensuring food safety and quality control, they said, would further strengthen customer trust.
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(The reporter can be reached at: [email protected])
Edited by: Anayetur Rahaman
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From luxury to lifestyle: Super shops sweep Bangladesh
Sales at retail chains jumped significantly following the withdrawal of the separate 7.5% VAT
Not long ago, supermarkets in Bangladesh were seen as a luxury reserved for the elite. Today, they have become a household choice for the middle class and even the lower-middle class. What was once an exclusive trend has now evolved into a mainstream habit, reshaping the country’s retail landscape.
The sector has matured into a structured and fast-growing industry, fuelled by changing urban lifestyles, rising consumer awareness, demand for hygienic and reliable products, and the convenience of digital payments.
Industry insiders said sales at supermarkets surged significantly after the withdrawal of the separate 7.5% Value Added Tax (VAT) in February this year. Shoppers no longer need to pay VAT separately, as the retail price of products now represents the final price.
They also pointed to lifestyle changes, higher purchasing capacity, and the convenience of finding daily essentials under one roof as key factors behind the sector’s rapid growth.
According to industry insiders, Bangladesh currently has around 100 supermarkets, including 7–8 major chains. The sector employs around 22,000 people across more than 1,000 outlets, with total investments reaching around Tk10,000 crore. Key players include Shwapno, Agora, Meena Bazar, Unimart, and Daily Shopping, with Shwapno alone holding over 50% of the market share.
Supermarket owners noted that the franchise model has played a vital role in expanding business nationwide.
Sales increase after VAT exemption
Shwapno Managing Director Sabbir Hasan Nasir said sales have surged sharply since the VAT exemption. “Digitalisation will continue to drive growth. We introduced Bangladesh’s first self-checkout counters at our Gulshan outlet and plan to expand this service further based on customer response.”
He added that Shwapno adopted the franchise model in 2017–18 and has since become a frontrunner in innovative retail business models.
As of September, Shwapno operates 735 outlets across the country, of which over 646 are franchises. The company employs around 8,500 people and plans to expand to 3,000 outlets within the next five years.
Kamruzzaman Kamal, marketing director of PRAN-RFL Group, which owns Daily Shopping, said consumer trust and shopping habits have changed significantly in recent years.
“After VAT withdrawal, our sales rose by nearly 20%,” he said. Daily Shopping currently operates 86 outlets, including 34 outside Dhaka.
“We plan to open showrooms in every district by next year, and gradually expand to the upazila level. With increased technology adoption and e-commerce integration, the sector will become even more dynamic,” he added.
Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners Association, said the association played an active role in securing VAT exemption, which has boosted industry growth.
Economic perspective
M Masrur Reaz, chairman of Policy Exchange Bangladesh, said Bangladesh’s supermarket sector has huge potential as consumption rises rapidly.
“There are around 20 lakh agro-related retail shops in the country. With more working people, greater purchasing power, and lifestyle changes, supermarkets are expanding fast. The sector will grow immensely in the future,” he said.
He stressed that Bangladesh needs fiscal policy support to attract foreign direct investment. “Chain supermarkets are already ensuring product quality and modernising retail. But compared to India, Thailand, and Malaysia, Bangladesh is still at a root level. Addressing issues such as price competitiveness, product quality, and cost of doing business is critical.”
Challenges remain
Industry insiders pointed out several hurdles: high retail space rents, utility costs, unclear rental policies, lack of skilled manpower, weak wholesale markets, high transport costs, extortion, and maintaining product quality.
They stressed the need for affordable retail rents, reliable infrastructure, uninterrupted electricity and internet, and government incentives to boost investment at the district and upazila levels. Ensuring food safety and quality control, they said, would further strengthen customer trust.
_______________________________________________
(The reporter can be reached at: [email protected])
Edited by: Anayetur Rahaman