Officials in the retail sector confirmed that the flexibility shown by the departments of some commercial centers in reducing the rental values, as well as the facilities provided by the owners of these centers, contributed to the reductions and big offers witnessed in the markets, and recently reached 90%.

They pointed out that the decline in rental values ​​for shops is a factor influencing the decline in commodity prices, pointing to the factor of low oil prices, and reduce the profit margin by traders. They predicted that prices will continue to fall towards the end of the year, and companies want to reach the sales target.

Consumers, in turn, told Emirates Today that significant reductions in clothing and footwear prices have encouraged them to increase purchases, demanding more discounts to include durable goods, household appliances, and electrical appliances, and stepping up controls to prevent fake offers.

It is noteworthy that the latest report of the Federal Competitiveness and Statistics, showed the existence of reductions in the prices of clothing and shoes in the market, up to 7.1% on average, during last September, on an annual basis.

Encouraging cuts

In detail, consumer Huda al-Jabri said that she had seen, during the past months, the existence of significant reductions in the prices of clothing and shoes, which have not seen in years, which encouraged her to increase purchases.

Al-Jabri demanded the continuation of the offers with increasing the rates of discounts, and intensified supervision to prevent fake offers.

Consumers agreed on the club in the presence of encouraging discounts on clothing and footwear in particular, demanding to include more exhibits, and the extension of the cuts to include durable goods, household appliances and electrical appliances.

The consumer, Osama Ismail, pointed out that the reductions were real in the outlets of clothing and shoes, which prompted consumers to buy, agreeing on the need to continue the reductions, and include other goods, such as: phones, electrical appliances.

Rental values

In turn, the manager in charge of a shop, Nasser Salam, said that the past period has seen significant reductions of up to 90%, and ranged mostly between 25 and 50% in the prices of clothing and shoes, and many other goods, in order to stimulate the market, and increase the volume of sales, pointing to Consumers have become highly conscious, distinguishing between real and imaginary cuts.

He stressed that the reductions contributed to the increase in sales, rates ranging between 20 and 30% at least, pointing out that the flexibility shown by the departments of some commercial centers in reducing rental values, and strong competition contributed to those reductions.

Sara Mohammed, a sales department official, said that the sale and discount of clothing and footwear mainly contributed to the increase in sales, ranging between 25 and 30%, agreeing that the decline in rental values ​​for shops and facilities provided by the owners of shopping centers, In addition to cutting the profit margin by traders, it contributed to the success of the recent cuts.

Reduce your cost

Retail sales expert Ibrahim Al-Bahr said the decline in clothing and footwear prices, by an average of 7.1 percent year-on-year, was mainly due to the continued decline in store rentals, both inside and outside the mall. .

He added that the continuation of this decline led to the reduction in the operational cost to the traders, which encouraged them to put many offers and price reductions.

Al-Bahar explained that the strong competition between the outlets inside the commercial centers and between the shops inside and outside the centers, encouraged the issuance of more offers, and led to the further decline, pointing out that the decline in oil prices also helped, to lower the cost, and thus continued strong offers.

He said that the last period witnessed reductions of up to 90%, in the Abu Dhabi and Dubai market, on the prices of clothing and shoes in particular, expecting the continued decline in prices towards the end of the year, and the desire of companies to reach the sales target set at the beginning of the year, in addition to the holiday period. Such as National Day, Birthdays, and New Year's Day, with strong retail offerings in general.

«Economy»: boosting consumer confidence

Dr. Hashem Al Nuaimi, Director of Consumer Protection Department at the Ministry of Economy, welcomed any discounts that benefit consumers and traders, considering that these reductions activate the market and boost consumer confidence.

Al Nuaimi called on consumers to file a complaint with the ministry in case of any violations in the market until the ministry investigates them and takes legal action against violators.

Truth: Rental values ​​are a factor in lower commodity prices

Reda Musallam, general manager of Truth Economic Consultancy, said that the decline in rental values ​​for shops is an important factor in the decline in commodity prices as a major factor in operating costs.

He pointed out that the decline in the purchasing power of some individuals working in private companies, has led traders to revitalize the market by offering discounts, and reduce their profit margin to reasonable limits, through which they can entice consumers to increase sales.

He explained that the rate of 7.1%, according to the report of statistics, is on average, which indicates that the decline is greater than that.

He called for revitalizing the cycle of economic activity, and reconsidering the cost of industrial activity services, especially land, water and electricity, as well as reducing the rental values ​​of warehouses and warehouses, which helps reduce the cost of production.