Looking forward to further recovery with the launch of "Expo 2020 Dubai"

«Majid Al Futtaim»: A continuous recovery in the retail sector .. and e-commerce sales grow 17%

  • «Majid Al Futtaim»: Shoppers seem more reassured when they are in public places.

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  • Alain Bejjani: "(Majid Al Futtaim) is confident that the retail economy in the UAE is on the path to a full recovery."

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Majid Al Futtaim, a company working in the field of developing and managing shopping malls, integrated cities, retail and entertainment facilities, has published new data showing the continued recovery of the retail market in the UAE.

The data of the “State of the Retail Sector in the UAE” report for the second quarter of 2021 revealed that the recovery that emerged for the first time earlier this year appears to be continuing, as modest profits were recorded in a number of areas, some of which witnessed significant growth with increased demand. Consumer spending again, as the data showed a growth in e-commerce sales by 17% during the first half, and consumer spending in retail stores outside shopping centers increased by 3% during the second quarter.

positive trends

Alain Bejjani, CEO of Majid Al Futtaim Holding, said: “We are still witnessing the positive trends that we have seen over the past six months in the retail economy in the UAE, with some sectors making significant progress in returning to pre-pandemic levels.

This cautious optimism is due to the effective vaccination measures taken by the federal government and local health authorities, which worked to protect our communities and raise levels of confidence inside and outside the country.

He added: “We expect an acceleration in consumers' desire to engage in multi-channel experiences, as digital solutions and technologies have become an integral part of daily life.

We look forward to further recovery in the tourism-related sectors with the launch of Expo 2020 Dubai later this year.”

Bejjani praised the collective efforts to rebuild in the post-Covid-19 phase, and the remarkable flexibility shown by the UAE market, noting that the analysis of the second quarter data confirms the signs of sustainable growth.

He said, "(Majid Al Futtaim) remains confident that the retail economy in the UAE is heading towards a full recovery."

big order

The report showed that the reduction of restrictions contributed to the registration of great demand in some sectors, pointing to the residential real estate sector, which is a prominent example of this trend, as it witnessed a 215% increase in the number of residential real estate transactions in Dubai between May 2020 and May 2021, in addition to a growth Transaction value by 357%.

“Majid Al Futtaim” research shows that shoppers feel more content with their presence in public places, as 64% of them admitted that they feel reassured to visit shopping centers, and the number of visitors to Majid Al Futtaim’s network of shopping centers increased by 11% in the second quarter of 2021 According to the report, compared to the first quarter of 2021.

In turn, consumer spending in the field of retail outside shopping centers increased by 3% when comparing the second quarter of 2021 to the corresponding period before the pandemic (the second quarter of 2019), and food and beverage sales increased by 41%, and home furnishings by 28%.

Electronic trade

In turn, e-commerce was one of the big growth areas in 2020, becoming the only shopping channel available in some cases.

The report considered that it will maintain this growth, despite the easing of many restrictions imposed on shopping, as e-commerce sales in the UAE increased by 17% when comparing the first half of 2021 with the first half of 2020.

The report concluded by saying: “Cautionary optimism prevails in the retail sector in the UAE in the second quarter of 2021, and confidence levels continue to rise in conjunction with the steady economic recovery.

The success of the response measures in the UAE and the vaccination program will, over time, lead to the return of the positive atmosphere to the sector in full force.”

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