Amid the summer retail season in the UAE, shoppers are being treated to attractive discounts and price reductions as inflation eases.
The decline in inflationary pressures has resulted in lower prices across various categories, particularly in food and groceries. While fast-moving consumer goods (FMCG) prices remain relatively high, significant discounts are expected once retail promotions like Dubai Summer Surprises (DSS) kick off. DSS, which starts on June 29 and runs until September 3, is likely to bring notable reductions in prices, especially in the fashion, accessories, smartphone, and gadget sectors.
One of the most significant advantages for UAE consumers is the decrease in inflation, which had been affecting shopping decisions throughout 2022. The decline in inflationary pressures has boosted consumer confidence, albeit cautiously, and may further enhance the shopping experience if the trend continues.
According to Abhishek Rajput, Senior Consultant at RedSeer, there are indications of cooling inflation across various product categories in the UAE prior to the DSS sales. The annualized inflation rate in May 2023 was 3.4%, down from 6.8% in May 2022. Factors contributing to this cooling trend include government measures to control food prices and the moderation of global commodity prices.
If these trends persist in the coming weeks, the summer sales season is expected to perform well. The steady increase in the population, coupled with the attractiveness of the UAE to new residents, suggests positive prospects for consumer expenditure.
Retailers and analysts believe that UAE shoppers are in a win-win situation, benefiting from lower inflation reflected in actual prices and additional discounts offered during this period. With prices dropping and significant discounts available, shoppers can enjoy favorable deals during their summer shopping endeavors. Photo by Shahroozporia, Wikimedia commons.
