The latest State of the UAE Retail Economy report has been released by Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia.
The report revealed overall spending increased by 22 per cent in January to June 2022 from the same period last year, driven by growth of 16 per cent in retail spending and 31 per cent in non-retail sectors.
Although the nation is not immune to the effects of market volatility, supply chain stress, rising fuel costs and inflation, the latest research shows signs of optimism that point to a continued economic rebound. In the first half of 2022, the retail general category was up by 15 per cent from the same period in 2021, contributing 44 per cent growth to the overall retail economy. Spending increased on food and beverages (15 per cent), hotels (14 per cent) and pharmacy and health (14 per cent).
While rising prices have not put a brake on consumer spending, they have influenced what people buy and where they spend their money, according to an analysis of Majid Al Futtaim’s point-of-sale transactions. In Q2, spending on fashion & accessories and watches & jewellery rose by 20 per cent compared with the first three months of the year, driven mainly by seasonal discounts and Ramadan promotions.
Indeed, as spending continues to grow across the retail sector, shopping in stores and online is rising. The research further reveals that omni-channel shopping remains consumers’ preferred way to buy, with e-commerce spending increasing by 41 per cent in the first half of this year from the same period in 2021 and online sales now accounting for 11 per cent of the overall retail economy. Perhaps unsurprisingly, clothing and fashion topped the omni-channel list, with 54 per cent of shoppers saying they make purchases in this category on and offline, whilst 54 per cent also stated that they prefer to go in-store when shopping for groceries.
