Dubai: There may be more gifts under the Christmas tree this year, according to analysts as more shoppers from Western Europe and Gulf Cooperation Council (GCC) states are making most of the purchases at major shopping malls and retail outlets in the UAE. Overall, the response of retailers is mixed with some saying that sales are yet to pick up.
Nikola Kosutic, research manager at Euromonitor International, a research firm, expects retail sales in the UAE during the festive season to rise 10 per cent compared with the same period in 2013, driven by Western European shoppers.
Most of the tourists at the malls this month are from the Gulf Cooperation Council (GCC) countries and Europe, according to analysts. They noted that there are fewer Russian shoppers due to Western economic sanctions and falling oil prices pushing the ruble down.
“Christmas is gaining visibility in the UAE. I think retailers are one of the factors driving this trend because they see anything as an opportunity to increase revenue,” Kosutic said.
Shopping malls, hotels and restaurants in Dubai are decked with Christmas trees and decorations.
Kosutic said that in the weeks leading up to Christmas, retailers try to reel in consumers by offering promotions though social networking sites and loyalty programmes.
“Retailers are trying to turn customers into brand advocates by encouraging them to join loyalty programmes and reminding them to connect with the brand across different social networking sites. This is important for the UAE because it has one of the highest mobile penetration in the world,” he said.
Some are a little less optimistic about UAE sales growth during Christmas, but still generally positive.
“Sales are positive and on par with last year,” said David Macadam, chief executive and vice-chairman of the Middle East Council of Shopping Centres.
However, a Dubai-based retail analyst, who requested anonymity, said retail sales in the UAE so far this December are not growing compared with a year ago as falling oil prices and stock markets have led consumers to be less optimistic about the economy.
“Sales are not growing compared to December last year because of the general mood. Customers in the UAE have a wait and watch approach,” he said.
The analyst expects the retail market to pick up when more tourists arrive in the country within the coming week.
Dinesh Pagarani, general manager of supermarket chain Choithrams, anticipates sales in the run-up to Christmas to be slightly higher compared with the same period in 2013, helped by “the organic growth in the population” and a larger variety of Christmas-related products.
Similarly, Nisreen Shocair, president of Virgin Megastore in the Middle East, expects “double-digit sales growth” in the next two weeks compared with the corresponding time last year.
She added that multimedia accessories and books are among the top selling products so far this month.
