Dubai: The retail sector in Dubai and Abu Dhabi is expected to witness a boost during this Eid holiday, which starts Saturday, with some retailers citing a 15 to 20 per cent expected jump in sales.
Since last Monday, a number of major malls in Dubai, such as Mall of the Emirates, Mirdif City Centre and Deira City Centre, have extended their opening hours from 10am to 1am for retail stores and to 2am for cafes and restaurants on weekdays. On the weekends, the opening hours have been extended to 2am for retail stores and to 3am for restaurants.
The mall timings’ extension comes as the Eid in Dubai — Eid Al Adha’, an initiative by the Dubai Festivals and Retail Establishment (DFRE) that is part of the Eid celebrations, kicked off on September 25. It will run until October 11.
Vipen Sethi, chief executive of Landmark Group, which has brands like Centrepoint, Babyshop and Splash, expects a “20 per cent growth” in sales during the Eid period.
“Year-on-year we have always seen a positive growth during this season,” Sethi said in an emailed statement.
Paris Gallery, too, expects to record stronger sales during Eid.
“We have had increased sales since last week, and we are expecting an increase of about 15 per cent to 20 per cent during the Eid Al Adha week,” said Mohammad Abdul Rahim Al Fahim, chief executive of Paris Gallery.
He said that perfumes top the list for shoppers during Eid, followed by high-end watches, and accessories.
“Sales for cosmetics and sunglasses also do well during this time, but not on par with other categories, as they are not purchased as gifts for others, but rather for personal use,” he added.
GCC residents
Meanwhile in Abu Dhabi, Ashraf Ali M.A., executive director of Lulu Group, said he expected such an increase of up to 20 per cent in sales at Lulu Hypermarkets especially as residents from GCC countries visit the UAE, adding up to sales and revenues.
“This year, Eid has coincided with Gitex season so we see an increase in sales of electronics and gadgets because a lot of people are buying Eid gifts. With the launch of new tablets and iPhones, the electronics category is driving sales,” Ali told Gulf News.
Lulu Group, which has franchise agreements to bring restaurants like Peppermill, De Thali, and Bloomsbury cafés to the UAE is also expecting a hike in revenues at dining outlets.
“Our group’s restaurants usually see a jump in revenue of as much as 30 per cent during the holidays,” Ali said.
Colin Beaton, managing director of Limelight Creative Services, a retail consultancy, said he expected the Food and Beverage (F&B) sector in particular to perform very well during the Eid holiday.
“I think you will see a fairly significant increase in the food and beverage outlets, and you will see a good increase in fashion [outlets] simply because the malls will be busier because it’s a long weekend. The one downside to this, is that a lot of people do leave the country, and that will take some momentum out of retail. Nonetheless, I still think it will be a net positive increase in footfall,” he told Gulf News.
With visitors from neighbouring countries flocking to Abu Dhabi to spend their Eid holiday, Beaton explained that malls and hotels will benefit from increased tourists, while community shopping centres will be negatively impacted by residents leaving the country.
In comparison to the Eid Al Adha holiday last year, Beaton said that the retail sector should see more footfall this year.
“Overall, there’s a more positive sentiment. I think there’s more willingness from people to spend their disposable income. I know there are issues with inflation and housing, but I think there’s a positive momentum in the marketplace that’s generating confidence from consumers who are more willing to spend,” he said.
Mall operators in the country expect a rise in footfall during the Eid period.
Healthy rise
Oasis Centre in Dubai expects a 15-20 per cent rise in footfall throughout the duration of the Eid in Dubai — Eid Al Adha’ initiative compared to the same period in 2013, according to Neelesh Bhatnagar, director of the shopping mall.
“With our previous DSS campaign, the participating malls indicated a healthy rise in footfall. Customers not only visited the mall to experience the series of events, but to also spent time shopping, dining and doing other such leisure activities, which led to a double digit increase in footfalls for the participating outlets on an average of 10 per cent. We were encouraged by this upward trend to take on our current Eid Al Adha promotion, ending on October 11th, to reward our shoppers for their continuous support and going by the demand, we expect the momentum to continue through to the Eid Al Adha week,” stated Majid Al Ghurair, chairman of the Dubai Shopping Malls Group.
Over in Abu Dhabi, Lilas Al Rabbat, marketing manager at Deerfields Townsquare, said she expected increased footfall during the holiday, and that outlets in the mall are catering to such increase,
“This year, we have designed activities especially for kids’ entertainment. Also, our tenants are running various promotions, and our F&B brands have moved their operations outdoor to benefit from the change of weather, and offer a great dining experience with beautiful garden area views at Deerfields,” she said.
