Malls brace for Dubai Shopping Festival bonanza

Retailers and malls are gearing up for a stellar sales performance during the Dubai Shopping Festival as peers from Europe struggle under sluggish economic conditions.

Jumbo Electronics, a multi-brand electronics store, projects that sales will jump 50 per cent during DSF compared with a normal month. Pawan Singh / The National
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Retailers and malls are hoping for stellar sales during the Dubai Shopping Festival (DSF) as peers in Europe struggle under sluggish economic conditions.

On the back of a strong year in 2011, in which many retailers enjoyed sales growth in excess of 10 per cent, retail executives are confident DSF's combination of promotions, events and tourist numbers will bolster this year's revenue.

"We believe this year will be an extraordinary DSF," said Firoz Merchant, the chairman of Pure Gold Jewellers, which has more than 100 stores across the Middle East. "We think it will be much better than last year." DSF, which is one of the Dubai Government's major annual tourist attractions, begins tomorrow and lasts 32 days.

Mr Merchant expects sales at this DSF to exceed last year's figures by 20 to 30 per cent as tourists flock to the UAE and Pure Gold looks for low-margin, high-volume business rather than high-margin sales.

"There's a beautiful flow of tourists in the market," Mr Merchant said. "We have had very good sales in the past 10 days."

Jumbo Electronics, a multi-brand electronics store, projects that sales will jump 50 per cent during DSF compared with a normal month, and the retailer is spending more than Dh1 million (US$272,249) this year on advertising with radio and newspaper promotions and leaflets.

"Last year was a great year," said Nadeem Khanzadah, the deputy general manager for retail at Jumbo. "2011 DSF was a great year and this year, building on the momentum of the last couple of promotions, we expect double-digit sales growth of about 14 to 15 per cent."

Neelesh Bhatnagar, the director of the Oasis Centre mall, predicts a 30 per cent increase in customers this DSF compared with last year.

"We have a lot of exciting activities planned, with prizes worth Dh300,000 being given away over the course of the month," he said.

This optimism among UAE retail executives contrasts starkly with messages from retail peers in some other parts of the world, where consumer confidence is weak because of poor economic conditions.

The UK high street in particular has experienced a difficult Christmas period, with brands offering huge discounts that ate into their margins.

As a result, La Senza, a lingerie and nightwear brand, announced last week that it would start bankruptcy proceedings.

In Dubai, hundreds of retailers will be offering promotions and discounts, but executives are confident they will be making healthy profits during DSF.

"Dubai has always had this legacy or history of being a top-notch shopping destination," Mr Khanzadah said. "People have always felt that Dubai has more to offer than you can get elsewhere."

Jumbo is offering lower prices, bundled promotions or vouchers on 80 per cent of its electronics goods, as well as giving away two gold coins each day to customers.

Pure Gold's major promotion will be a solitaire diamond, worth Dh1,500, for every customer who spends more than Dh2,999 on diamond jewellery.

The Dubai Gold & Jewellery Group, an industry trade body, will raffle half a kilo of gold every day for 32 days, with one winner receiving a prize of 3kg of gold on the final day of DSF.

Meanwhile, Majid Al Futtaim Properties, the operator of Mall of the Emirates, Deira City Centre and Mirdif City Centre, is offering customers the chance to win a Dh250,000 shopping spree if they spend more than Dh300 in any of the company's malls.

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