Two more Abu Dhabi outlets shut down

Lack of business and intense competition has forced two more retail outlets in Abu Dhabi's gold market to shut down, taking the total to six this year.

The two, both members of the Abu Dhabi Gold and Jewellery Group, pulled their shutters down last month, sources confirmed. There could be other smaller retailers planning to wind up their business.

The stocks of the two retailers have been taken over by bigger traders.

The wider trade is sustaining itself due to brief spells of good business. "Closure of retail outlets is a regular occurrence in Abu Dhabi's gold souk. But new players continue to enter the market not knowing how business can be," said Tushar Patni, chairman of Abu Dhabi Gold and Jewellery Group.

"The ones that have closed shop were members of the group. But there could be others who are not members having wound up their businesses."

Disunity among members of the informal gold and jewellery group continues and contributed to a lacklustre market in the capital. The big players continue to embark on their own promotions with little cooperation within the trade.

"We are working on sorting out some of these issues in the interest of the trade," said Patni. Another long-established gold trader in the capital said the retail business is increasingly becoming unprofitable for small players.

"Competition is stiff and with changing consumer tastes and demands, variety is the name of the game. It becomes necessary for retailers to be well-stocked. Therefore size matters and the bigger the better."