Retailers see brisk business this holiday season

Dubai: Retailers expect to notch up strong sales during the holiday season on the back of rising consumer confidence in the UAE.

Consumers have had a propensity to spend as the economy began to recover from the slump, helped by tourism and a recovery in its real estate market. With Christmas approaching, followed by New Year’s Eve, consumers, especially the Western expatriates, are going on a buying blitz.

“Shoppers are usually looking for gifts for the family during this period, leading to high sales volumes across categories such as toys, home-ware and electronics. We see a surge in purchases for children, because they are the top priority for every family during this season,” Vipen Sethi, CEO of Landmark Group, a retail and hospitality conglomerate, told Gulf News in an emailed statement.

He added that demand for winter apparel and accessories is up. “People also travel during these months, which prompts them to shop for their holiday destinations,” he said.

Landmark expects “to maintain a healthy double-digit growth through the busy festive period,” he said.

Similarly, Mohammad Al Fahim, chief executive of Paris Gallery, said he expects an overall increase in sales, with perfumes first followed by accessories.

“As far as luxury and fashion is concerned, sales have been steadily rising and we don’t expect this year to be any different. We can safely assume a 5 to 10 per cent growth based on year-long trends and the particularly involved purchase patterns of this season,” he told Gulf News in an emailed statement.

Retailers have launched marketing campaigns and discounted certain items to drive footfall. Malls, too, have rolled out their promotions to attract shoppers.

Consumption is expected to continue even after New Year’s Eve, according to Fatemah Sherif, research analyst at Euromonitor International.

“Consumption carries on until DSF [Dubai Shopping Festival],” she said. During DSF, retailers roll out discounts across a range of product categories. It is a period when spend is on a high. So far, it has attracted around 47 million visitors and contributed Dh114 billion to Dubai’s economy. The festival will run from January 2 to February 2 next year.

However, the season will “not have much of an impact” on supermarkets and hypermarkets, Sherif said. According to her, demand for food items normally bought during Christmas is high, but remains stable for other food items.

Dubai’s retail sector, which has performed well this year due to solid economic fundamentals, is expected to welcome more shopping outlets as more space will be added to the market in the next few years.

The emirate’s retail space currently stands at 2.8 million square metres. According to Jones Lang LaSalle (JLL), the retail supply will increase by 48,000 square metres by the end of the year.

“One sees a rise in the number of community centres and small malls, focused on the resident population across the UAE. We expect to see further consolidation of retail offerings in the country to engage resident customers and tourists,” Sethi said.