Home Business UAE retailers introduce fixed prices on a wider range of products for Ramadan, addressing shopper anxieties

UAE retailers introduce fixed prices on a wider range of products for Ramadan, addressing shopper anxieties

Leading hypermarket operators extend product range with fixed prices and discounts


UAE hypermarket operators and food commodity retailers are taking measures to keep prices steady during the Ramadan phase and ensure that consumers are not deterred from spending due to inflationary price gains. Major retailers are expanding the scope of fixed-price promotions through the next few weeks. Lulu Group, for example, has increased the number of products that will remain at the same price during Ramadan from 100 to 200. The company has also noticed a slight shift in consumer spending on daily/weekly essentials, especially food purchases, and is attempting to mitigate inflationary price increases by keeping prices constant on most food items.
Other supermarket chains are following suit with their own Ramadan promotions by tackling the cost factor. Straightforward discounts remain the most popular option, while some banks are offering cashback opportunities on grocery spending done through their credit cards. However, cost spirals remain a heavy concern for businesses. Recently, the UAE authorities allowed retail prices on eggs and other poultry products to be increased temporarily after fielding requests from local producers on the steep increase in costs at their operations. Retail industry sources suggest that the hike on egg and poultry prices is a one-off and a temporary measure.
On imported food staples, retailers report that the still-strong dollar makes inward shipments into the UAE manageable. Shipping costs have also come down significantly since October 2022, which eases the pressure on prices for the UAE consumer. The major Ramadan campaigns have been running for a few days now, and retailers have strategized in-store offerings with three major promotion cycles. The pre-Ramadan bulk purchases and deals, repeat purchases with offers on top-up buying once Ramadan starts, and then promotions focusing on the best possible deals on Eid purchases.
Food importers and wholesalers are also taking measures to ensure there are adequate supplies at all times. Placing higher orders means more costs, but they have learned the lessons of having sufficient stocks at all times. They foresee a heavier spending pattern through the next few weeks and beyond Eid, and they need to be prepared for the shopper rush.
Shoppers in the UAE have already started buying and stocking up for the start of Ramadan this week. The measures taken by retailers to keep prices constant on most food items and expand their range of fixed-price promotions should help ease shopper concerns and encourage spending during the holy month. Despite cost spirals and inflationary price gains, retailers and suppliers are working together to ensure that there are adequate supplies and reasonable prices for essential goods during Ramadan.

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