UAE sales of outdoor apparel and footwear to rise

Friday, Oct 09, 2015

Dubai: Retailers in the UAE selling outdoor clothing and footwear are expected to see higher sales in the next few months as the weather cools down, according to retail analysts.

“The cool winter months in the UAE are catalysts for faster growth of outdoor sportswear … Outdoor climbing, hiking and, particularly, running in the cooler winter months are becoming popular in the country,” said Diana Jarmalaite, research analyst at consultancy Euromonitor International.

Shivam Goyal, chief operating officer at Sports One, which sells everything from sports apparel and footwear to gym equipment and road bikes, expects demand for its outdoor goods to grow by 60 per cent from September to March. Sales are likely to grow by 15 per cent month-on-month from October to February.

“The demand for the products is on a steep rise at the moment; the latter part of the year is when people indulge more in outdoor activities and sports with the weather cooling down,” he said.

Similarly, athletic footwear brand Skechers expects that “the next 3-4 months to be key months [since] demand increases substantially as the weather becomes better,” said a company spokesperson by email.

Strong dollar

Colin Beaton, managing director of retail consultancy Limelight Creative Services, said that while sales of outdoor goods will increase in the cooler months, they are expected to be softer than last year, as the retail sector’s growth slows down this year.

The strong dollar, to which the UAE dirham is pegged, against the euro and rouble this year has lowered spending of European and Russian tourists. The slowdown in the UAE’s economic growth has also resulted in consumers reducing their spending.

“We can expect a strong sales growth in October from pent up demand and the need to replace goods in expectation of the cooler summer months. Sales will slow down nearer to December and remain soft through the winter,” he added.

Euromonitor International expects higher sales growth of outdoor apparel and footwear in the second half of this year compared to the first half, primarily due to the Dubai Summer Surprises, which ran from July 23 to September 5, and the start of the school year, during which demand grows for children’s sportswear, according to Jarmalaite.

The outdoor apparel and footwear market is estimated to be worth around Dh800 million this year, up 6 per cent year-on-year, mainly driven by increasing awareness of health and wellness in the UAE, she said. Another factor driving sales of outdoor goods is the government’s investments in new running and cycling tracks, which encourage people to take part in outdoor activities.

Dynamic growth

“The sporting goods industry is on a steep upward curve. With a rising trend towards health and wellness and healthier lifestyles being promoted, and with more and more consumers wanting to go down the active route, the sports retail industry is geared for dynamic growth; with young adults garnering the highest sales at our stores,” Goyal added.

This year, outdoor apparel is projected to amount to around 70 per cent of total demand, according to Jarmalaite. By 2019, she said that the country’s outdoor apparel and footwear market is projected to reach Dh1 billion.

Goyal said that in the last few years sales of outdoor apparel and footwear in the country have increased due to “rising consumer per capita disposable income, coupled with more health-conscious individuals … an increase in the population of the UAE [and] major international sporting events and championships [in the country].”

By Sarah Algethami Staff Reporter