Dubai: Retailers in the UAE reported modest increases in year-on-year sales during the Christmas and New Year’s holiday season.

Mohammad Abdul Rahim Al Fahim, chief executive of luxury retailer Paris Gallery, told Gulf News that the company’s sales were up 6 per cent during the Christmas and New Year’s season compared to the same time in the previous year.

“During the holiday season, we hosted a lot of unique activities and promotions that added excitement to the festive season which in turn increased footfall to our stores,” he said.

The best-selling product categories at Paris Gallery during the holiday season were cosmetics, fragrances, watches and accessories, he said.

Nimit Deepak Pajila, general manager of Geekay Games, said December sales were good – a 15 per cent rise over the same period in 2014.

December and July usually see the largest sales in video gaming, with new game releases targeting the holiday periods.

“We’ve had a good year compared to 2014,” Pajila said. “It’s thanks to aggressive offers by both PlayStation and Xbox, which have helped consumer decisions – there have been some amazing price points. We’ve also had games like Rainbow Six and Just Cause exceeding our expectations.”

However, Colin Beaton, managing director of Limelight Creative Services, a retail consultancy in Dubai, expects retail sales during the holiday season in the UAE to have been softer compared to the previous year.

“Sales weren’t as strong as the previous year but there wasn’t a massive drop,” he said.

“Generally, consumers are more cautious so discretionary spending has declined,” he said. Lower oil prices have weakened consumer confidence in the country, leading them to tighten their budgets.

European and Russian tourists have lowered their spend as well, as a strong dollar — which the UAE dirham is pegged to — against the euro and rouble have made shopping here more expensive for them.

Some retailers globally have also posted modest increases in Christmas sales.

UK retailer John Lewis saw a 2.3 per cent year-on-year rise in sales in the week to December 26 to $191 million, boosted by sales of gadgets such as gaming devices and wearable technology on its website and mobile app, according to a Reuters report.

Beaton said that the real test for the health of the local economy is the Dubai Shopping Festival (DSF), which runs until February 1.

“There’s a need to spend during Christmas. But DSF is a value driven exercise. The health of the economy can be tested more accurately during DSF,” he said.

Rivoli Group is expected to post a 15-20 per cent growth in sales in January compared to December 2015, according to its managing partner, Ramesh Prabhakar.

 

— With inputs from Andrew Staples, Chief Business Reporter