December ends up being the worst period for physical retailers in the Middle East. Be that as it may, the online partners are profiting. Physical retail deals in the UAE have taken a hit during the current year because of lower buyer certainty and weak oil costs.
Deepak Babani, CEO of Eros Group said they were seeing around 20 percent less deals contrasted to previous year because of numerous reasons like solid dollar, low oil costs, provincial political unsteadiness and low traveler inflows. We never anticipated that deals in December would drop so seriously. The stoppage began right from June, he included. Every one of the issues has met up in the midst of low consumer confidence. Indeed, even lodgings have reported low inhabitance rates.
However, for Sheriff Rizwan, CEO and originator at AlShop.com, this December is better when contrasted to the same period a year ago because of e-business getting altogether this year. The offline off business sector has seen a 30 percent plunge in volume. People are delicate by the way they spend and where they spend. They are getting their work done effectively to put something aside for a better necessity, he said.
Babani said his companions in the luxury sectors, like watches, bags, clothes, who are stating that they are seeing around 40 percent fall in sales. Inquired as to why online retailers are seeing an increase, he said that the quantity of people moving from offline to online is considerably small.
Mahesh Chotrani, partner VP at Jacky’s Electronics, said that footfalls have been down at the shopping centers and it is one of the slowest Decembers ever seen. November was very better than average and I am not certain whether it is because of the low customer confidence or people are sitting tight for the Dubai Shopping Festival.
Diana Jarmalaite, research examiner at Euromonitor International, said that the UAE retail showcase, esteemed at $49.8 billion (Dh183 billion) this year, is relied upon to enlist a year-on-year development of 8 percent this year contrasted to 2014. As per the information from Euromonitor International, the retail market is conjecture to develop to $53.7 billion in 2016 and $67.5 billion in 2019.