DUBAI - Despite a high gold price and a traditional lull in shopping activity during the summer, Dubai's retail jewellery trade registered an overall sales surge of five per cent in June-August period compared to the same time last year.
According to P. K Baiju, General Manager, Dubai Gold & Jewellery Group, the sales growth varied from five to 10 per cent among the retail traders. He said the aggressive summer promotion launched by the Dubai Gold & Jewellery Group, the umbrella organisation of the jewellery trade, has been behind the successful summer sales.
Baiju said during the group-sponsored DSS gold promotion, featuring some 254 retail players, the total sales turnover as on date amounted to Dh370 million. "June-July accounted the largest aggregate growth during the promotion. The business tapered down in August, which is a usual trend considering resident buying pattern. The increase in retail gold price to the current level of Dh46.25 for 22K has impacted the high karatage jewellery off-take in August," he said.
Joy Alukkas, chairman of the Joy Alukkas Group, one of the largest 22-carat gold jewellery chains in the world, said the trade has been witnessing a sustained upswing since the Dubai Shopping Festival when the sales recorded a 40 per cent surge over the previous year. "This upturn persisted even after the DSF regardless of the high gold price which hovered above $400 per troy ounce. Consumers have got used to the price rally, which has been soaring 15 per cent every year for the past four years," he pointed out. At this rate of growth, prices could go up by another $60-70 per ounce next year," he said.
Joy said after the summer lull, the trade would be gearing up for what promises to be the peak sales season when all the festival shopping is done. Sales are poised to pick up by the end of September and will remain very strong during Ramadan, Diwali and Christmas festivals."
Baiju said since 2003, the Dubai Gold & Jewellery Group's summer promotion format has been revised to run alongside DSS for its entire duration. "With this, visitors could avail of the fabulous jewellery offer for all 72 days of the DSS. The prizes offered was over Dh1.2 million, comprising 17.5 kilos gold through weekly raffle, instant gold prizes and the remaining through win-half your purchase scheme."
BY ISAAC JOHN
© Khaleej Times 2004
