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Apparel, footwear lead Dubai's retail sector growth
Apr '16
Dubai's market for apparel and footwear is estimated to be worth $12.8 billion, registering 5.5 per cent annual growth in sales since 2010, according to a report by the Dubai Chamber of Commerce and Industry based on data from Euromonitor International.

The category is mainly composed of apparel, footwear and sportswear, with apparel leading total sales in both areas of value and growth rate. Apparel sector in Dubai is valued at $10.4 billion, recording compound annual growth rate of 5.8 per cent. The report, however, stated that sales of the maturing segments of footwear and sportswear have flattened in recent years, and are roughly estimated at $2.4 billion and $1 billion, respectively. Supply has kept pace with rising demand, as retail space expansion continued in 2015 with the launch of new malls and new brands, it said.

The findings of the report were released during the World Retail Congress being held in Dubai from April 12 to 14, 2016, under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“Growing economic prosperity, steady population growth, and rising incomes are driving sales in major retail segments of Dubai. Dubai Chamber's sectoral report highlights the vibrancy of Dubai's retailing industry and its contribution to the overall economy. The report represents Dubai Chamber's commitment to supporting the development of businesses, and our efforts to promote Dubai as an international business hub,” Hamad Buamim, President and CEO of Dubai Chamber.

The Dubai Chamber report points out that while Dubai is known as a leading luxury shopping destination in the region and a major hub for premium brands, mid-priced brands are also starting to gain popularity. This could be attributed to the rise in the numbers of budget-minded tourists who seek to stretch their dollars, it said.

At the same time international brands have launched new stores in the city to cater to the fashion conscious consumers, and setting sights on regional growth after getting a feel of the Middle East fashion taste and needs through their presence in Dubai, the report said.

Dubai Chamber expects positive consumer confidence and increased tourist spending to continue to drive growth for Dubai retail activity in the medium term. It said in the report that sales of apparel and footwear in the emirate of Dubai are expected to reach $13.5 billion this year, and are set to enjoy growth at a CAGR of 6.6 per cent until 2020, when sales are forecast to hit $17 billion.

Sales under the Apparel sub-segment are forecast to keep expanding at a faster pace of 6.9 per cent annually to exceed $14 billion by 2020; whereas modest growth will be seen in the sales of footwear and sport, which are forecast to expand by CAGR of 5 per cent and 5.6 per cent, to reach $3 billion and $1.3 billion respectively, by the end of the forecast period, the report said. (SH)

Fibre2Fashion News Desk – India

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