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Customers are gradually returning to retail outlets in the UAE as governments begin to ease coronavirus lockdowns, new research showed.
The past week has seen several countries relaxing tight restrictions on mobility, allowing businesses to reopen their doors, following weeks of closures.
In the UAE, the government has allowed malls and commercial establishments in the non-essential sector, including cafes and restaurants, to reopen to a restricted number of customers on condition that certain safety measures are followed, including social distancing and the use of face masks and gloves within the shop premises.
According to public Wifi provider Purple, which has tracked footfall traffic in more than 50,000 venues across 128 countries, the number of people entering the retail outlets has jumped nearly 9 percent globally since the easing of restrictions.
In Europe and Middle East region, retailers have seen a modest increase of 4 percent, while the United States (US) and the Asia Pacific registered a 434 percent and 443 percent increase, respectively.
“The early indications suggest that an easing of restrictions has led to a large amount of people heading back to shops and stores,” Purple said in a statement.
Last week’s data also showed that customers are starting to visit cafes and restaurants, which posted an increase in traffic of 14 percent and 2 percent, respectively.
With more countries in other markets, including Europe and the United Kingdom (UK) planning to ease restrictions, Purple said it is likely that businesses will continue to see an increase in visitors, not just in the retail sector but also in the majority of verticals.
Retailers have been severely affected by the lockdowns imposed by governments. Within the UAE, the store closures have led to a decline in private consumption, which accounts for about a third of the country’s gross domestic product (GDP).
Colliers International had earlier forecast that the retail sector in the Middle East will be able to recover faster than their peers because shopping is part of the social fabric in the region.
Research into previous economic challenging situations also indicates that people tend to increase their spending when they have more economic certainty and their behavior starts to go back to normal.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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