A PROBLEM OF DISCOUNTS TOO MANY AND TOO LOW: September’s PMI (purchasing managers index) for the UAE highlights one problem area for businesses and for which there won’t be an easy fix. Discounts on offer now match those seen last at the end of last year, when end-of-the-year promotions typically hold sway. That businesses are touching the same discount levels well before this year’s end will have a telling impact on how well they are likely to emerge from the pandemic crisis relatively unscathed. Will they, by the time December comes around, be forced to drop their prices even further to stand a chance of winning more buyer support? If so, is this going to be a cost they can keep on bearing? Already, cashflows are under extreme stress. Banks are reducing their exposures to key sectors, and liquidity comes with strings attached. A tricky spell looms ahead…[COMMENT BY: Manoj Nair, Business Editor]
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