Behind the swanky fronts of retail stores and malls across the UAE, and the wider GCC region, a creeping sense of alarm is pervading the retail business. Fewer shoppers are being spotted buying household items and foodstuff in aisles overflowing with merchandise.
TRENDS visited a few places in Dubai to see the effects of the slowdown in the retail business and to speak with retail operators. From early July onward store managers at places like Mall of Emirates and Circle Mall have watched with trepidation a double-digit decline in footfall of shoppers.
With high inflation biting into family budgets, households have cut back on spending on essential commodities because of the high cost of goods. A few months back, the picture looked more sanguine when the retail industry appeared well on course to record double digit growth, bolstered by a Majid Al Futtaim report indicating retail consumer spending in the UAE having increased by 14 percent in the first quarter of the current financial year.
But the scene is much bleaker now. On a hot July afternoon, Stacey Villaneuva, a Dubai resident, walked into Circle Mall in Jumeirah Village Circle. Stacey comes to the mall to shop for groceries almost every week.
“Only if I must or find a great deal, I buy. Given the rise in prices of necessities such as food and fuel, I’ve had to re-evaluate spending not only discretionary but also household. For example, even if I choose to buy organic food products, I first try to find a good deal over full-priced items.”
Many analysts and experts TRENDS spoke with belief the slump in the retail sector in the MENA region is visible and hitting the business hard.
