Consumer Confidence in UAE Hits 10-year High: Report
Consumer confidence in the UAE has reached its highest level in 10 years, with overall spending ahead of levels last seen before the pandemic, according to data from third quarterly edition of State of the UAE Retail Economy released by Majid Al Futtaim. Point-of-sale (POS) data highlights that Q3 2021 was the first period since […]
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Consumer confidence in the UAE has reached its highest level in 10 years, with overall spending ahead of levels last seen before the pandemic, according to data from third quarterly edition of State of the UAE Retail Economy released by Majid Al Futtaim.
Point-of-sale (POS) data highlights that Q3 2021 was the first period since the pandemic struck when consumer spending increased by 7 per cent and exceeded levels seen in 2019.
The data further points to a significant improvement in both the frequency and level of comfort in visiting shopping malls, where year-on-year footfall in Q3 improved by 18 per cent between 2020 and 2021. General retail categories have seen consumer spending grow by 6 per cent between Q2 and Q3 2021, mainly driven by an 18 per cent increase in spending on electronics, mirroring a similar pre-pandemic uptick in electronics spending between Q2 and Q3 2019.
Unsurprisingly, eCommerce also continues to gain momentum across the UAE, indicative of a step-change in consumer habits brought about by Covid-19. Data reveals that the overall value of eCommerce sales in Q3 2021 was 34 per cent higher than the same period in 2020, with consumers spending a quarter more on eCommerce in the year to September compared to the same period in 2020.
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The fashion sector was a major contributor, with an increase of 170 per cent compared to the same period a year earlier. Carrefour e-food sales in the UAE increased by 171 per cent during the year-to-date until September 2021 compared with the same period last year, with over 1.4 million orders fulfilled.
Alain Bejjani, CEO, Majid Al Futtaim, said: “Looking back over the first nine months of the year, it is clear to see the tremendous progress the UAE has made in recovering from the impact of a global pandemic. Data highlights the continued and far-reaching impact of the country’s robust vaccination programme, which has further bolstered consumers’ sense of cautious optimism and the subsequent return to sustainable growth across the retail economy.”
