Jordan lifted almost all of its remaining COVID-19 restrictions in February 2022, including removing the need for inbound arrivals to present a negative PCR test. This boosted economic activity and tourism all of which provided a more positive outlook for retail in the country.
Retail finally returned to growth in current value terms in 2022, with sales having struggled during the pandemic due to the impact of the country’s COVID-19 restrictions on the economy and consumer spending. In February 2022 Jordan lifted almost all of its remaining COVID-19 restrictions, although consumers still needed to present a vaccine certificate to enter businesses and public buildings.
Informal retail in Jordan mainly relates to the sale of alcohol and tobacco and is often carried out through small local grocers and alcohol specialists. Smuggled cigarettes from Lebanon are very common in Jordan and are available everywhere, not just because of the price but also because many Jordanians preferred the taste of these smuggled cigarettes.
The outlook for retail in Jordan looks bright with the market set to continue its recovery. New shopping mall developments are set to be supported by new infrastructure and city development projects such as Jordan’s new smart city.
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Retailing
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See All of Our DefinitionsThis report originates from Passport, our Retailing research and analysis database.
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