The UAE is one of the world's top countries with the most stable stocks of consumer goods despite the disruptions caused in global supply chains by the coronavirus pandemic.

New data released by the Dubai Chamber of Commerce and Industry show that the out-of-stock level across the emirates is 1.8 percent as of April 21, one of the lowest in the world. This indicates that retailers in the country have been able to quickly replenish their shelves in spite of a surge in demand.

Notably, the data indicated that essential goods, like fruits and vegetables, toiletries and milk, are less likely to be out of stock in the UAE than in the rest of the world, including countries like the United States and the United Kingdom.

“E-retail companies in the UAE have succeeded despite the challenges of high demand due to the spread of coronavirus (COVID-19) and disruption of supply chain worldwide,” the chamber said.

To examine the impact of the pandemic on the availability of stocks across the country, the Dubai Chamber looked at the data supplied by Euromonitor, particularly the percentage of consumer products that are not in stock in 36 major economies around the world.

The trade body tracked the inventory levels of major e-commerce platforms across the country and the daily percentage of stock-keeping units (SKUs). It found that stock levels are even more resilient now compared to the pre-pandemic times, with the online out-of-stock rate dropping from 3.4 percent on January 21 to 1.8 percent on April 21.

In the UK, consumers are more likely to find essential goods unavailable, with an out-of-stock rate of 10.2 percent. In Canada, as well as India, the rates are higher, at 20.2 percent and 78.3 percent, respectively.

“Lower percentages of out of stock essential items [indicate] limited disruptions due to COVID-19 restrictions,” the chamber said.

“These data show that the UAE occupies an advanced position globally, due to the UAE’s pivotal position in the global trade map, its large storage capacity and its extensive logistical networks which contributed to record-low percentages of materials that were out of stock before the outbreak of the epidemic,” it added.

Retailers earlier told Zawya that they have been working tirelessly to ramp up the sourcing and shipment of goods from various markets globally to ensure the country is able to meet consumer demand all throughout the pandemic.

Union Cooperative signed in March multi-million-dollar contracts with suppliers while LuLu Hypermarkets chartered cargo planes to beef up stocks.

“We made sure we have enough procurement done so that our stocks won’t deplete. We are seeing that the stocks are almost filled. I don't think there’s going to be any scarcity of any essential item out there,” said Piyush Kumar Chowhan, group CIO at LuLu Group International, which operates several hypermarkets in the UAE.

Items available, out of stock

In the UAE, daily essentials that have low shelf life, such as fresh food, eggs, poultry, starchy roots and vegetables enjoyed zero online out-of-stock rate in late April, indicating that they are always refilled.

Consumers will also likely to find bleach, hand dishwashing and Vitamin C always available in the market, with out-of-stock rates for these products at zero percent.

Out-of-stock levels for certain items with a long shelf life, however, are higher compared to other goods, as some consumers tend to stockpile or buy in bulk to reduce purchase frequencies and fill up their pantries.

Products that may run out of stock include home care disinfectants, multipurpose cleaners, dried pasta, noodles, rice and liquid soap.

Here’s how the UAE ranks globally in terms of out-of-stock rates as of April 21, 2020:

  1. South Korea: 0.2 
  2. China: 0.5 
  3. Thailand: 1.1 
  4. Indonesia: 1.4 
  5. Turkey: 1.5 
  6. UAE: 1.8 
  7. Taiwan: 2.1 
  8. Saudi Arabia: 2.2 
  9. Chile: 3.5 
  10. Mexico: 3.5 
  11. Argentina: 3.8 
  12. Czech Republic: 4.0
  13. Japan: 4.1
  14. Finland: 5.4
  15. Norway: 6.8
  16. New Zealand: 6.8
  17. Italy: 8.4
  18. Singapore: 8.5
  19. Poland: 8.7
  20. Spain: 8.8
  21. UK: 10.2
  22. Australia: 10.4
  23. Greece: 10.7
  24. Denmark: 10.8
  25. USA: 10.9
  26. Germany: 11.2
  27. France: 11.6
  28. Switzerland: 11.7
  29. Netherlands: 14.5
  30. Brazil: 15.1
  31. Hong Kong, China: 18.7
  32. Canada: 20.2
  33. Russia: 20.6
  34. South Africa: 21.6
  35. Austria: 22.9
  36. Belgium: 23.9
  37. Ireland: 25.1
  38. India: 78.3

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.Maceda@refinitiv.com 

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