Retail sales are expected to increase significantly during Ramadan, as residents around the UAE increasingly turn to online platforms to pick up on goods and gifts for family and friends ahead of the Eid holiday.
In fact, this month is one of the brightest lights on the Middle East retailer’s e-commerce calendar, with an estimated $6 billion in online sales expected over the next few weeks.
According to RedSeer Consulting’s Ramadan E-Commerce research, Ramadan is on track to break all online sales records in 2022, with total sales to jump by 40% to reach $6.2 billion in 2022, accounting for about 16% of total e-commerce market activity this year.
Numerous shopping deals
Many retailers, especially supermarkets and online brands, have made the most noise during Ramadan. Still, smaller businesses can use unique offer opportunities to entice new customers or reward current ones.
Grocery and fashion are the most significant demanding categories during the holy month. According to RedSeer, the two industries are forecasted to see the most significant rise, with 87% and 70% of consumers planning increased spending. As a result, grocery will see its contribution to the e-commerce mix increase from 11% to 14%, while fashion will see its share grow beyond a third of the e-tail market.
UAE supermarket chain Carrefour, for example, has revealed it will be doubling customers’ savings through several initiatives during the holy month. Carrefour has planned up to 50 percent discounts and promotions on more than 10,000 items throughout the month.
Lulu Group has also launched many promotions and offers, keeping in mind convenience and savings for shoppers. There will be more than 15,000 products in various categories, from fresh food and grocery to lifestyle, home appliances, and electronics, with discounts ranging from 30% to 50%. In addition, there will be specific promotions, such as Dates Festival, Meat Market, Ramadan Souq & Healthy Ramadan options.
Nandakumar, Director of Marketing and Communications of LuLu Group, told TRENDS:” During Ramadan, usually we see a surge in sales of food, grocery, and home appliances in the initial days, followed by lifestyle, fashion, and gifts as we near the Eid holidays. So, we have planned elaborate promotions and offers on these categories.”
Gadgets also emerge as the biggest winners from Ramadan promotions as various brands anticipate more sales and offer this month.
Multi-brand retailer EROS offers discounts and bundled offers primarily on home appliances and other gadgets across all its stores in the UAE and online. According to the leading retailer, shoppers have shown interest in buying smarter and time-saving gadgets and home appliances in preparation for this Ramadan season and Eid. Therefore, UAE residents are also looking for the best deals and offer this holy month to get more out of less.
Noon’s Ramadan ready sale offers great savings and discounts of up to 70% on several products in multiple categories. The platform provides 50% off on smartphones and up to 60% on electronics, televisions, cameras, and gaming consoles. Noon will also offer daily price drops and coupons that can be used to purchase cosmetics and perfumes.
The online effect
Following the Covid-19 pandemic, which permanently altered consumer behaviors, online shopping has increased.
For online retailers, F&B brands, and delivery portals in the UAE, Ramadan will be the start of another bumper month.
More F&B brands will be hoping for orders. According to industry sources, this category has performed well in the last six months, and Ramadan and Eid will help to maintain the pace.
According to a Visa survey conducted in November 2021, more than six out of ten consumers in the UAE and Saudi Arabia are now shopping online more than before to the pandemic.
Earlier research by Network International found that in 2020, UAE buyers spent 40% more each visit on grocery websites than in-store.
Online marketplaces such as Instashop, Kibsons, elGrocer, and Talabat account for a significant portion of UAE grocery purchases.
Kibsons is offering a 20% discount to consumers from April 23 to April 29 to celebrate Eid.
Meanwhile, throughout the holy month, Dubai-based grocery platform elGrocer will provide a Dh50 discount on purchases exceeding Dh250. It displays deals from its 500+ hypermarket, supermarket, and specialty store partners. elGrocer will also offer weekly coupon codes when shopping from participating brands in-home care, food, personal care, and beverages.