Business | General
Retailers prefer traditional markets
Despite the abundance of retail space in huge shopping complexes, a majority of retailers in Dubai are still proliferating outside the malls, a report shows.
- By Cleofe Maceda, Staff Reporter
- Published: 23:44 June 15, 2008
- Image Credit: Gulf News
- Only about 17 per cent are located in malls and other shopping complexes.
Dubai: Despite the abundance of retail space in huge shopping complexes, a majority of retailers in Dubai are still proliferating outside the malls, a report shows.
In its 'Survey of Dubai Retailers,' the Dubai Chamber of Commerce and Industry reported that 55 per cent of the 604 outlets surveyed are situated in traditional markets and other commercial or industrial places.
Only about 17 per cent are located in malls and other shopping complexes. The remaining 28 per cent are either in residential buildings (15 per cent) or have not reported their location (13 per cent).
"Location and visibility to customers are of prime importance for retail outlets, as they need to be easily identifiable and accessible to customers. This is especially true when competition is fierce," the Dubai Chamber report said.
The Chamber's 2006 membership database showed that Dubai is home to 84,142 businesses and establishments. Many of them, 67.2 per cent (56,530), are engaged in wholesale and retail trading, and the remaining 32.8 per cent (27,612) are in other sectors.
The report said the city's trade sector is "relatively larger" than in many developed countries like Singapore, where only 35 per cent of businesses are involved in wholesaling and retailing.
Dubai also has 40 trading establishments for every 1,000 residents, while Singapore only has seven per 1,000 population.
Statistics released by Retail International have shown that Dubai has the biggest retail space in the Middle East and North Africa, with some 1.3 million square metres of gross leasable area. Experts have warned Dubai against further expansion as the market could get saturated.
However, Salam Stores regional manager Ebrahim Bitar said Dubai's rapid expansion is nothing to worry about as opening of additional shopping space "will serve more people coming in and more visitors and tourists in the country."
"Dubai is pulling huge traffic from all over the world and especially the region by providing them state of the art services. There is no doubt that the population here will increase and demand for retail space will follow," Bitar told Gulf News.
Traded goods
The Chamber also surveyed which specific products of retailers are mostly traded. The report said that luxury goods like jewellery are more likely to be found in malls, shopping complexes and special souqs.
However, a majority of goods such as clothing and footwear, computer hardware and software, medicine, beauty and health products, electronics and appliances, food and beverages, furniture and furnishings, office equipment and supplies, and leisure products are sold in souqs and other commercial places.
"Relatively cheap consumer goods generally consumed by individuals and households are available in nearly all places. However, luxury goods like jewellery are mostly available in malls and shopping complexes," the report said.
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