Dubai: Walk down a shopping mall in Dubai, and you’ll see windows featuring scenes from a winter wonderland, including trees adorned with colourful ornaments. It’s clearly the Christmas shopping season.
Brick-and-mortar retailers are hoping Christmas and the Dubai Shopping Festival (DSF), which also falls during this month, will help lift sales, as residents and tourists flock to buy gifts and other items.
“December [is] when consumer expenditure increases on home furnishings, home improvement items, apparel [and] delicacies before Christmas,” said Rabia Yasmeen, an analyst at consultancy Euromonitor International.
Retail sales have been soft in 2016, mainly due to the effect of a stronger US dollar, which makes the UAE, whose dirham is pegged to the dollar, more expensive for some tourists.
Paris Gallery, which expects to record a 5 per cent sales growth in 2016 over the previous year, is optimistic this month. Its chief executive, Mohammed Abdul Rahim Al Fahim, anticipates an increase of 10 to 15 per cent in sales in December compared to the previous month.
“We expect a healthy increase in footfall from tourists who spend freely on gifts for the holiday season,” he said.
At consumer electronics retailer Jacky’s, sales this month are likely to jump 20-30 per cent over November, its assistant vice-president Mahesh Chotrani said.
However, Al Maya Group’s director Kamal Vachani said sales at the supermarket chain are likely to grow in the range of 7-8 per cent month-on-month in December.
Retailers are rolling out discounts and deals to reel in consumers.
“Some of our stores will be offering certain discounts across the latest collection whilst other stores are offering complimentary vouchers to shoppers in-store. We will also be launching Christmas gift cards that can be purchased as an alternative to choosing apparel as gifts,” said Lin Al Sholi, senior marketing executive at Dubai-based conglomerate Bin Hendi Enterprises, whose portfolio includes retail brands Hugo Boss and Marimekko.
Jacky’s is offering gift vouchers and freebie bundle offers on all product categories except home appliances until December 25, Chotrani said.
Paris Gallery has a number of product launches lined up for this season, according to Al Fahim.
“We also have customised offerings to match the needs and requirements of the tourists that will be visiting the country during the season and others targeting each customer segment.”
Mederic Payne, chief executive of home furnishing retailer Home Centre, said he expects an increase in footfall across its UAE stores this weekend.
Footfall in the UAE is expected to be even higher during DSF, “largely triggered by tourist inflow,” Yasmeen said.
“DSF starts on December 26 this year, a week earlier as compared to last year, and it is expected that most holiday season sales will be conducted during DSF.”
Sarah Algethami is a freelancer with Gulf News
