UAE shoppers still cautious on spending - can BTS deals convince them?
Dubai: The ‘Back to School’ promotions are in full swing - but UAE consumers are taking an extra cautious approach to their shopping. Even when discounts of 50%-70% are available on essential purchases.
This caution towards buying could change this weekend and in the coming days before schools open for the new academic year. (Dubai’s KHDA has allowed private schools a fee hike of 2.35% for 2025-26.)
But this year, UAE retailers with stores are dealing with another factor in their BTS promotions - the extreme heat, which has prompted shoppers to choose online offers over going to a store.
Retailers in the UAE definitely are hoping for a ‘last-week surge’ in shopping during the Back To School phase. “Based on our numbers, our sales are around 20%-22% lower than what it was same time last year,” said a clothing and accessories retailer who has been running an extending BTS discount promotion. “What we see are shoppers reducing their spend on purchases – we hope it changes in the next few days.”
Along with events such as the DSF, DSS and the 3-day 90% off mega-sales, the Back To School represents a key part of the retail season in the UAE.
UAE retailers are also pointing to online shopping channels scoring some big wins in this year's Back To School promotions.
"It's the heat - and that's why parents and children are resorting to ecommerce to get their essential purchases done," said a retailer. "This year, many shoppers are preferring to make those purchases from the coolness of their homes.
"This is the other factor we have to keep in mind when mapping our own BTS deals. We have to make shoppers visit the stores."
Amazon’s website lists BTS deals with prices that are up to 70% off, which is the range that some of the bigger retail store operators are also having. In the computer and smartphone category, multiple promotions are on to catch the BTS and late-summer purchases.
UAE has been seeing strong online momentum - shoppers are resorting to online channels to beat the heat this summerAkshay Jayaprakasan of Redseer Consulting
The tech retailer Jumbo’s BTS campaign even has a Dh5,000 ‘scholarship’ element to it.
“The campaign not only delivers big savings but invests back into the community with an Dh25,000 scholarship pool, free educational sessions, and value-driven partner offers,” said Jumbo in a statement.
Customers spending Dh2,000 or more by August 31 enter a raffle to win one of five Dh5,000 worth of scholarships.
Clearly, retailers are thinking beyond straight discounts on previous year models. They have ample reasons to do so.
“Consumers continue to be very price sensitive in the UAE and Saudi Arabia,” said Akshay Jayaprakasan of Redseer Consulting. “There is also competition from cross-border players.
“The BTS season is running for a longer period, extending from June to August, including the Dubai Summer Surprises sales.”
Multiple retail and banking industry sources say they are hoping for a pick up in shopper demand from September onwards. “There is a bit of caution, but UAE residents have been spending well on their summer holidays,” said a banking official.
“The retail sector slowdown is more because residents are away – simple.”
UAE retailers are certainly hoping this will be the case - and the coming days will show whether that's a fact or not.
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