Retailers upbeat about Eid sales

Monday, Sep 21, 2015

Dubai: The Eid holiday is expected to boost retail sales in the UAE, retailers say.

Abraham Koshi, COO of Rivoli Group, which has brands like Omega and Rado in its portfolio, expects a 20-30 per cent sales growth from Wednesday to Saturday compared to the same period last week, he told Gulf News by phone.

“We expect all categories to do well. Omega, Rado and Tissot traditionally do exceedingly well during Eid,” he said.

The group’s chief executive, Ramesh Prabhakar, told Gulf News earlier this year that he expects its profit and revenue to grow by 10 per cent in 2015 compared with 2014. Rivoli has a portfolio of more than 110 international brands and sells watches, eyewear and leather accessories.

Koshi expects Rivoli Group to attract buyers from across the UAE and other Gulf Cooperation Council (GCC) countries during the holiday.

Meanwhile, childrenwear retailer, Babyshop, also expects double-digit sales growth, as well as a 10-15 per cent growth in footfall during Eid, according to Vinod Talreja, its chief executive.

Paris Gallery, which sells perfumes, cosmetics, watches and leather goods, expects a five per cent growth in sales this week compared to the previous week, and in September over August, said Esmail Al Fahim, the group’s commercial manager, in an email.

“Owing to the festive atmosphere in the UAE and the many promotions that are running in the malls, tourists will arrive in huge numbers from neighbouring countries. So we hope to see good footfall in our stores during this period,” he added.

Al Fahim expects ladies accessories and perfumes to be popular during Eid.

“Dubai has been growing as a global fashion hub, and due to this the ladies accessories segment is growing. Sales have been rising, especially during festive seasons. So our expectations are high for this segment. And as always, oud-based perfumes will prove to do exceptionally well this Eid,” he said.

Paris Gallery has increased its marketing budget by 10 per cent for Eid this year in expectation of higher footfall, he said.

Retail sales in the UAE have softened this year due to a number of factors, such as fewer tourists from source markets like Russia and Europe, according to Colin Beaton, managing director of Limelight Creative Services.

A weaker rouble and euro have made shopping in the country, whose dirham is pegged to the dollar, more expensive for Russian and European tourists.

Another reason for the weaker retail sales this year is a perception among consumers that economic growth is slowing down, Beaton said.

“We have seen continued softening in the UAE retail sector this year,” he added.

By Sarah Algethami Staff Reporter