Experts and entrepreneurs: the most prominent of which is reducing rents for merchants ... and providing liquidity with exemption from bank fees and interest
10 demands to revitalize the retail sector and compensate for the closure period during "Corona"
Experts have called for attractive discounts and offers.
Photography: Ashok Verma
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Experts and entrepreneurs have identified 10 demands to stimulate and stimulate the retail sector in the country in order to increase sales and compensate for the losses of the closure period during the Corona pandemic, in addition to facing the growing e-commerce, noting that the retail sector is one of the most important and successful sectors in the country, and thousands of employees work in it. With skills.
They explained to "Emirates Today" that the most prominent of these demands is to change the current strategies in the retail sector, reduce profit margins, make attractive cuts and price offers, as well as provide liquidity to traders without crippling conditions and exempt them from bank fees.
They called on property owners to reduce rents to retailers, as well as government departments and chambers of commerce and industry to organize shopping festivals while encouraging exports.
Challenges
In detail, the Vice President of the Emirati Entrepreneur Association, Ibrahim bin Shaheen, said that the local and global retail sector faces many challenges during the current period, which requires stimulating and revitalizing the sector in order to increase sales and compensate for the losses of closure during the Corona pandemic, and to face the growing e-commerce, Pointing out that facing these challenges is a joint responsibility between retailers, real estate owners and the concerned government departments.
Bin Shaheen called for changing the current strategies in the retail sector, reducing profit margins, and making large discounts and attractive price offers for consumers while entering into partnership relations with suppliers by reducing fees imposed on them, such as rack rental fees and display fees.
Rentals
Bin Shaheen also called on real estate owners to reduce rents to retailers to help them fulfill their obligations and make tangible reductions for consumers, especially since rents constitute a large part of the cost of business.
He called on government departments to reduce fees for permits and residency, and to cancel fines, which are a great burden on many retailers.
Bin Shaheen pointed to the importance of joining forces between the various governmental and private agencies in the current period to overcome this stage, especially that the retail sector is one of the most important and successful sectors in the country, and thousands of skilled employees work in it.
connection point
For his part, the economist and member of the Abu Dhabi Chamber of Commerce and Industry, Hamad Al-Awadi, said that retail trade is the sector most affected in the world by the Corona pandemic, especially as it constitutes the point of contact with the final consumer, as a result of the long period of closure and quarantine during the Corona pandemic. , And reduce going out and direct shopping even after the quarantine period ends.
Al-Awadi stressed that there is an urgent need to revive and stimulate the sector locally through concerted efforts between many sectors, most notably the banking sector, which must provide cash liquidity to retailers transparently without incapacitating conditions and high prices, in addition to exempting traders from bank fees and interest temporarily, indicating that The pressures facing the sector and exit from the market are hurting the banks and the investment environment.
Conditions assessment
Al-Awadi added that the banking sector should properly assess and evaluate the conditions that the retail sector is going through in terms of closures, low sales and lack of imports from abroad, given the fluctuation of production lines and freight movement, especially since the banking sector benefited from government support in terms of guaranteeing deposits and protection from Foreign rivalry.
Al-Awadi called on real estate owners who are able to give a grace period from paying the rent for a temporary period or to renew annual contracts to include 15 months, for example, instead of 12 months, so that the sector can fulfill its obligations towards suppliers and employees.
He also called on government departments and chambers of commerce and industry in the country to organize shopping festivals and discount festivals to increase sales while encouraging exports abroad and granting them facilities, such as exemption from export duties, pointing out that the government has taken important and necessary steps to support the sector, such as exempting licenses and renewal fees, and issuing licenses. Without fees and without headquarters to facilitate work, it has also adopted stimulating financial policies to support loans and provide liquidity, whether to stimulate the economy as a whole or to revitalize certain sectors such as tourism and others.
payroll
In turn, entrepreneur Jassim Al-Bastaki called on government agencies to increase support for the private sector by not dispensing with its employees by bearing part of the salaries of workers in the private sector, which includes more than 70% of the employment in the state for a temporary period, which is a great support for the retail sector, considering This step greatly contributes to supporting consumer purchasing power, indicating that there are some stimuli that have a tangible effect not only in the short term but also in the long term.
Al-Bastaki explained that this step also contributes to increasing government revenues, because subsidizing purchasing power contributes to revitalizing the real estate sector and supporting customs and ports movement as a result of import and export activity, as well as increasing tax payments from business sectors and supporting social stability.
Facilities
Al-Bastaki pointed out that the government agencies' participation in bearing part of the salaries in order not to dispense with employment in the private sector, is one of the important practices that some countries resorted to in the Corona crisis, such as Singapore, Germany and others.
He called on banks to provide long-term interest-free financial facilities to business sectors by taking advantage of the government support program, indicating that banks postponed some of the installments due on business sectors for several months, but did not postpone the interest due on these installments, stressing the importance of organizing discounts campaigns On the part of retailers to increase sales and support sector confidence.
Cuts
In the same context, the CEO of Dubai Consulting Company, Walid Hareb Al Falahi, asked merchants in the retail sector to make significant price cuts on products during the coming period in order to support consumer confidence after a large part of them went to e-commerce, which put pressure on investors in The sector, in order to stimulate sales and compensate for the closure period during the height of the Corona pandemic.
Al-Falahi said that the prices of many imported goods have declined during the last period, after rising to unprecedented levels in the first months of the pandemic, which helps to conduct offers and reduce the profit margin of retailers during the coming period to revitalize the sector.
Costs
Al-Falahi added that business costs for some retail sectors have decreased as a result of the restructuring of employment and salaries for some workers in the private sector, as well as the approval of some landlords to reduce rental values during the pandemic, which supports the sector and enables it to follow flexible and bold policies.
He stressed the necessity of innovation in products and policies to attract more consumers and compensate for the closings and decline in sales, stressing that the business community should help each other in the current period and reduce the burdens, each according to its field, and the government is not expected to provide more aid.
The 10 claims
Reducing profit margins.
Introducing price cuts.
■ Provide cash to retailers.
Exemption from bank fees and loan interest.
■ Reducing rents and permitting facilities in their payment.
Partnerships with suppliers by reducing rental and supply fees.
■ Reducing fees for permits and residency, and canceling fines during "Corona".
Export promotion.
■ Holding shopping festivals.
■ bearing part of the salaries of the private sector.
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