Retail

Businessman Yusuffali M.A. marked his return to public events after a helicopter crash as LuLu Group inaugurated a hypermarket in Ajman. Fully recovered from spine surgery following the April accident, Yusuffali emphasized LuLu Group’s dedication to the UAE’s progress, stating that the opening of the 212th hypermarket, the third in Ajman, demonstrated their commitment despite pandemic challenges. Sheikh Mohammed bin Abdullah Al Nuaimi, Chairman of Ajman Ports and Customs, praised Yusuffali and LuLu Group’s resilience, foreseeing their contribution to the UAE’s recovery and growth. The 70,000-square feet facility in Nuaimia, a full-fledged supermarket and department store, reflects LuLu Group’s ongoing investment in the UAE’s future amid post-pandemic rebuilding efforts. Yusuffali affirmed the group’s commitment to supporting the UAE’s vision and being an integral part of its progress.

In the second quarter of 2021, the UAE retail sector witnessed a 4% surge in consumer spending compared to the first quarter, according to Majid Al Futtaim’s State of the UAE Retail Economy Report. This growth surpasses the corresponding quarterly increase of 3% in 2019. The report indicates the continuation of retail recovery from the first quarter of 2021, with consumers displaying cautious optimism about the future. The prevailing sentiment in the UAE retail market during Q2 2021 is characterized by cautious optimism, bolstered by steady economic recovery. The success of the UAE’s response measures and vaccination program is expected to further enhance positive sentiment and resilience. The data underscores the permanence of e-commerce, with a 17% overall increase in e-commerce sales in H1 2021 compared to H1 2020. Despite a 3% dip in consumer spending in H1 2021 compared to H1 2019, sectors most affected by lockdowns, such as leisure, entertainment, fashion, and hyper/supermarkets, experienced the bulk of the decline. Leisure and entertainment spending, for instance, saw a 51% decrease in H1 2021. Alain Bejjani, CEO of Majid Al Futtaim – Holding, noted positive trends in the UAE retail economy over the past six months, with significant progress in some sectors returning to pre-pandemic levels. Cautious optimism is attributed to robust vaccination measures by the UAE Government. Excluding the worst-hit sectors, there was a modest 0.3% increase in retail general categories between H1 2019 and H1 2021, signaling a potential return to pre-COVID-19 levels by the end of the year. Tourism trends are evolving, with fewer tourists but longer stays and increased spending. The average length of stay in the UAE rose from 3.5 nights in 2019 to 5 nights in 2021. Remote working has influenced growth in sectors like home furnishings, with an 18% increase, and books and stationery, with a 46% rise in H1 2021 compared to H1 2019. While fashion sales declined by 4.0% during the same period, other retail general categories, including food and beverage, electronics, home furnishings, and hotels, recorded a modest yet significant 0.3% increase between H1 2019 and H1 2021. The UAE retail economy, as depicted by POS data and mall footfall across multiple sources, indicates that consumer spending is approaching 2019 levels, with growth observed in May 2021. Looking forward, accelerated consumer expectations for omni-channel experiences, increased integration of digital and technology solutions, and anticipated recovery in tourism-related sectors, especially with the opening of Expo 2020, contribute to the optimism. The report highlights green shoots of sustainable growth, and Majid Al Futtaim expresses confidence in the UAE retail economy’s trajectory toward a complete recovery. In sectors like residential property, pent-up demand, exemplified by a 215% increase in residential property transactions in Dubai between May 2020 and May 2021, demonstrates the rebound after the relaxation of restrictions. Shoppers are showing increased comfort in public spaces, with 64% feeling at ease visiting shopping malls. Majid Al Futtaim’s malls witnessed an 11% increase in total footfall in Q2 2021 compared to Q1 2021. Non-mall retail destinations experienced a 3.0% increase in consumer spending in the second quarter of 2021 compared to the equivalent period pre-pandemic (Q2 2019). Food and beverage sales surged by 41%, and home furnishings recorded a 28% increase.

Italian luxury sports carmaker Lamborghini achieved a historic milestone by selling over 10,000 vehicles in the past year, marking the first time in its history, according to Chairman and CEO Stephan Winkelmann. The success is attributed to the popularity of the Urus SUV, priced at over 230,000 euros ($250,000). Lamborghini, a subsidiary of Germany’s Volkswagen, witnessed an increase in deliveries from over 9,200 vehicles in 2022 to 10,112 sports cars and SUVs in 2023. The Urus played a significant role in the brand’s expanded output, driven by robust demand from affluent car enthusiasts. The company plans to introduce hybrid models in its lineup, with the Urus and a new car replacing the Huracan expected to go all-hybrid in 2024. The highest increase in deliveries occurred in the Europe, Middle East, and Africa (EMEA) region, with a 14% rise to nearly 4,000 vehicles, followed by a 9% increase in the Americas to 3,465 and a 4% growth in the Asia Pacific region to 2,660. Rival Ferrari, set to release 2023 data later this year, delivered more than 13,200 cars in 2022.