Dubai: Shopper demand may have been slow to start off with, but some aggressive price cuts by retailers in the UAE is setting up Ramadan sales for a rousing finish by the Eid Al Fitr holidays. Price slashes - by 15-30 per cent - have extended to the latest smartphones and electronics, while demand for grocery and F&B deals continue to run hot.

Retailers say this weekend should see another spending surge even as government staff prepare for salary credits that have been brought forward on account of Eid. Shoppers should also be on the lookout for some last-week-of-Ramadan deals, and throwing off much of the caution that has held back spending levels in the first quarter of 2023.

“Smartphones and electronics could be the biggest category winners in the next few days,” said a retailer. “Shoppers are finally being convinced the latest Ramadan promotions are good enough to warrant spending on a product upgrade now rather than wait for after summer.”

Many of the promotions are being done with an eye on picking up sales from those UAE residents who will be taking trips for the coming holidays. Apart from gadgets, fashion and accessories is the other category getting a lift from pre-travel spending.

Gold and jewellery is the one category that has slid down on the spending side, as consumers kept away from prices at $2,020 an ounce (UAE gold rate is Dh226.25 a gram). Expectations that prices would drop ahead of the holiday trips have been dashed for many residents.

Drop caution, start spending

With the Eid holidays having been announced today (April 13), retailers are ready for shoppers to free up their wallets. “We have the stocks and the right prices,” said a luxury fashion retailer. “The buyers are ready too, and we are expecting some extra sales pick up when other GCC visitors turn up to spend their Eid here.”

A new update from the insurer group GIG says that nearly half of GCC residents expect to pay more for Eid gifts than last year. “A majority, however, will hold out for Ramadan in-store events and special offers before making their purchases,” the statement added.

In GIG Gulf’s estimates, that’s nearly 75 per cent of GCC residents postponing purchases to wait for special offers during Ramadan - and Eid. This is why many retailers are holding back their last flurry of promotions to the final few days.

“Unless it’s grocery or F&B, it’s better to time Ramadan promotions during the latter half of the Holy Month,” said a retailer. “Start too early and the offers could get lost as many shoppers make adjustments to their daily routines.”

More to follow…