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Gold retailers record strong sales this Diwali

One of biggest shopping seasons in India also an important period for UAE retailers

Gulf News

Dubai: Gold retailers expect brisk business at their outlets throughout Diwali, the five-day Hindu festival of lights, which started on Sunday.

Diwali is one of the biggest shopping seasons in India, and is also an important period for retailers in the UAE, given the country’s large Indian community.

Retailers said they expect sales of gold jewellery during the festival to go up more than 50 per cent compared to the Diwali season last year.

“Gold sales have gone up by 25 to 30 per cent during this festival season compared to last year,” John Paul Joy Alukkas, executive director of Joyalukkas group told Gulf News in an emailed statement.

Similarly, Pure Gold Jewellers recorded strong gold jewellery sales during Diwali so far, an increase of 40 per cent over the corresponding period last year.

“This is one of our best Diwali sales so far and it is indicative of growing consumer confidence. As gold prices have fallen by almost 25 per cent compared to last year, we experienced a surge in gold jewellery sales,” Firoz Merchant, chairman of Pure Gold said in a statement on Sunday.

In addition, Shamlal Ahmad, director of international operations at Malabar Gold and Diamonds told Gulf News that sales have “gone up over 100 per cent” compared to last year, adding that business is better during this year’s Diwali. Although demand has focused on gold jewellery, gold bars and coins are also popular, accounting for between 15 and 20 per cent of sales.

Alukkas, too, said that demand has climbed 20 per cent over the same time last year.

“I feel consumers in the UAE are a lot more secure with respect to the economic environment this year and this is clearly impacting our sales positively,” he said.

Meanwhile, retailers are attracting consumers to the shops with big promotions.

For instance, Pure Gold is offering a ‘no making’ charge on a range of 22 karat jewellery.

Also, at Malabar Gold and Diamonds, customers can win a quarter kilogramme of gold with a purchase of jewellery worth Dh1,000. They can also avail gold coins as gifts when they buy from the special Diwali jewellery.