Retail
From The Report: Dubai 2020
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For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP, and is set to continue expanding. However, optimism surrounding the influx of new supply is tempered by slower economic growth brought on by lower oil prices. In this context, sector stakeholders are looking to Dubai Expo 2020 to provide a welcome boost to the sector. At the same time the growth of e-commerce is being actively supported by the government, which sees an opportunity to create a regional e-commerce centre within the logistics district in Dubai World Central. This chapter contains interviews with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free; and Patrick Chalhoub, CEO, Chalhoub Group.

Articles from this Chapter

Overview

Primary driver: The sector remains a key economic contributor, bolstered by new developments and preparations for Expo 2020
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For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP and, thanks to a number of mixed-use retail projects in the pipeline, is set to continue expanding. Local iconic malls are constantly reinventing themselves, searching for new brands and experiences to attract global consumers to spend on fly-andbuy excursions. However, optimism surrounding the influx of new supply is tempered by…

Interview

Bright outlook: Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free, on the impact of tourism on bricks-and-mortar stores
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Interview:Colm McLoughlin How are market expectations for the final run-up to Expo 2020 affected by rising visitor numbers? COLM MCLOUGHLIN: The total number of tourists to Dubai grew by 0.8% to reach a record-high of 15.9m in 2018, bringing the emirate closer to achieving its target of welcoming 20m travellers per year by 2020, when it will host Expo 2020. Furthermore, in 2018 Dubai International Airport retained its position as the world’s busiest airport for international traffic, welcoming…

Interview

Ahead of the trend: Patrick Chalhoub, CEO, Chalhoub Group, on the impact of the changing visitor profile and e-commerce
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Interview:Patrick Chalhoub What risks are there of over-saturation in the sector given the increase in gross leasable area (GLA)? PATRICK CHALHOUB: The peak at which demand outpaced supply occurred in 2015, since then supply has gradually superseded demand. The reason for this is that demand has remained stable since 2015, while supply has continued to rise. As a result, we have seen an even greater share of GLA devoted to retail. Dubai has now overtaken London as the world’s most important…

Analysis

In the pipeline: Dubai’s largest developers continue to add new retail stock
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With new communities to serve, as well as developments that aim to reinvigorate existing districts, some of Dubai’s most prominent real estate developers are increasing the number of retail options available to residents of and visitors to the emirate. In talks with real estate consultancy Knight Frank UAE, OBG learned that total gross leasable area (GLA) of retail supply is expected to increase by 111% from 3.5m sq metres to 7.1m sq metres by 2024. Nakheel Properties Located at Nakheel…

Analysis

Shifting patterns: Retailers adapt to changing trends in consumer behaviour
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Due in part to local demographic changes and broader economic factors, retailers in Dubai have noticed an evolution in the profile of the typical consumer. As such, the success of retail offerings in the coming years will depend on stakeholders’ ability to predict new trends in the emirate’s shifting consumer spending patterns. As for the purchasing power of visitors from the region and further afield, much will depend on broader economic factors as countries navigate a lower oil price…

Overview

E-commerce evolution: Online shopping is set to expand in emerging markets
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While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost segment activity and several notable regional players are emerging, in some cases backed by large international e-commerce firms that recognise the potential of growth markets. Rising Popularity In advanced economies e-commerce has quickly become…