Gulf Business: The UAE Retail Economy report for the first half of 2022 has been released by leading retail conglomerate Majid Al Futtaim.
As per the report, overall consumer 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.
The latest research also 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 by 15 per cent, hotels by 14 per cent and pharmacy and health by 14 per cent.
As for the point-of-sale transactions, consumer spending on fashion & accessories and watches & jewellery rose by 20 per cent compared to the first three months of the year, driven mainly by seasonal discounts and Ramadan promotions.
The research further reveals that omnichannel 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.
Clothing and fashion topped the omnichannel 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.
The hypermarket and supermarket sector also demonstrated growth, increasing by 12 per cent in the first half compared to the first six months of 2021. However, consumer purchases have shifted towards lower value and higher frequency, with the average transaction value down by 12 per cent compared to the first half of 2021.
Alain Bejjani, CEO at Majid Al Futtaim Holding said, “Despite the gathering global headwinds, data from the Q2 State of the UAE Retail Economy report confirms an ongoing, steady rebound. Bolstered by Government-driven diversification initiatives that focus on strengthening the non-oil economy, boosting productivity, and creating the best environment for foreign investment, the UAE retail economy looks set to continue on a positive trajectory. While the country is not immune to wider macroeconomic challenges and inflationary pressures, the intrinsic strength and stability of its foundations offer fertile ground for lasting economic growth.”
https://gulfbusiness.com/uae-consumer-spending-increased-by-22-in-h1-2022-majid-al-futtaim-report/
