MoE shoppers spending 20% less than '08 - CEO

RETAIL TRAIL: The Majid Al Futtaim Group also owns the City Centre Mall in Deira.

Shoppers at Mall of the Emirates are spending in the region of 20 percent less than they did in 2008, the CEO of the Majid Al Futtaim Group, which owns the Mall, has told Arabian Business.

Visitor numbers to the Dubai mall are also down two percent compared to 2007, Iyad Malas said in an interview.

“I think we have seen some drop in traffic, but we are not sure how much of it is due to Dubai Mall opening, and how much is due to tourists not coming to the UAE. Traffic is down about two percent from where it was this time last year,” he added.

Malas said he was not overly concerned about the threat of competition for visitor numbers posed by the opening this year of Dubai Mall [click here] – the biggest shopping mall in the world.

“Dubai Mall is obviously a big and attractive mall. People want to visit it. The point is, if you come to Dubai for five days, you are bound to visit Dubai Mall, and Mall of the Emirates. Both have attractions – everyone wants to come and see the ski slope at Mall of the Emirates. The key for both malls is whether people buy or don’t buy. And in terms of buying, we are seeing a drop in the twenty percent range. The people who suffer the most are the luxury retailers,” he said.

The Majid Al Futtaim Group also owns the City Centre Mall in Deira, as well hotels in Dubai, including the Kempinski at Mall of the Emirates, and the Sofitel at the City Centre Mall. Malas said occupancy rates were down at the hotels, but that occupancy levels over recent years had been “abnormal.”

“The situation before was abnormal. Having occupancy rates of 75 percent on an annual basis is what every hotel would dream of. 90-95 percent in some months was a very high rate. It was becoming unsustainable,” he said.

For more news on the retail sector, click here

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READERS' COMMENTS

The Truth
Posted by mr muscle, Dubai, UAE on Sunday 14 June 2009 at 15:22 UAE time

This is simply the opinion of someone who has a vested interest in the success or failure of Dubai as a whole. Dubai was a great idea once, it has been ruined by those who want to impress their view on everybody that passes through. What Dubai should have been was a liberal oasis in the ME region, where multinational and multicultures mix in a blend that suits everyone....rather like Singapore but with more sand. Unfortunately, it isn't and never will be Singapore.

To Omar
Posted by Jon, Dubai, UAE on Sunday 14 June 2009 at 10:00 UAE time


Dear Omar,

Thanks for your insight, and yes, I am leaving - not because I lost my job, because I realise there are much better places in the world to live and there is only so much a "tax" free salary compensates a lower standard of life.

But Omar, be careful for what you wish for, I am not the only one with this sentiment...

Be careful what you wish for.
Posted by Paul King, Dubai, UAE on Saturday 13 June 2009 at 21:34 UAE time


Yet more advice from people who want it to be illegal to criticise Dubai. How many times have i read that the people who are offering positive criticisms of Dubai should "go straight to the airport!" Well, you know what, be careful what you wish for. Many people are leaving and returning to their home countries. MOE is obviously not one of Dubai's many "white elephants", but please allow the sceptics their opinions of figures released by Landlords who are obviously nervous about collapsing retail figures. This is just the first part of a 5-10 year downturn in retail worldwide. Obviously the shopping mall is a different attraction in the desert, particularly in the hot summer months. Nevertheless, the 25 year long credit bubble is finally over and consumers can no longer use their homes as ATM machines as property values spiralled upwards out of control. People and companies are starting to cut back on holiday's, luxury purchases & unneccesary expenses.

Giddy UP Omar!!!
Posted by Joe, Dubai on Saturday 13 June 2009 at 21:30 UAE time


Omar, my friend, you are correct in all you say!! Mall of the Emirates shops pay the bills for shops in other Dubai malls. Anyone in the retail trade in the UAE knows this. I too would be willing to pay a commission to get a space in MOE but it is impossible. Unless you are "connected" and know someone at MAF or you are one of the big retail companies like Al Shaya or Americana (F&B) it is near impossible.

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