As the holy month of Ramadan continues, retailers are stepping up their game in launching promotions and offers to cater to the increased demand from shoppers.
Data from GfK, a global market intelligence company, for the overall technical consumer goods market in the UAE an eight per cent uplift was witnessed during March and April last year compared to the other non-sale periods. This year, the trend is likely to be along similar lines.
With altered eating and sleeping schedules during Ramadan, there is a noticeable shift in shopping hours. Malls and markets may stay open later into the night, catering to shoppers after iftar and prayers. “More people turn to online shipping for convenience and this can be seen in the boost via the e-commerce platforms.Also, families typically spend more on groceries and food items during Ramadan, for iftar and suhoor,” Hakim Amar, head of retail partnerships, EEMEA, GfK, told Khaleej Times in an interview.
Gfk research shows that typically, there are three phases of sales during the holy month..
Surge in retail sales was observed in the month of March 2023 as consumers prepare for the holy month.
Retail sales experience a slowdown mid Ramadan as people focus more on religious activities, spending time with family, and observing fasting rituals. Finally, retailers capitalise on the surge in demand during Eid by offering special promotions and discounts. “Significant increase in retail sales are observed during the end of Ramadan,” Amar said.
There are several strategies that retailers deploy to attract customers during this period, Amar said. These include —
Bundle deals: Retailers offer bundle deals for electronics to encourage customers to buy more while creating a value add to the purchase
Special offers, promotions and bank discounts: These offers, promotions and exclusive coupon codes attract price-conscious consumers who are looking to make purchases for Ramadan and Eid celebrations
Limited time offers and flash deals: Retailers may offer exclusive discounts for a short duration, encouraging customers to make purchases quickly before the offer expires
Gift with purchases: Customers are more likely to make a purchase if they perceive added value in the form of a complimentary gift or sample
Extended store hours : This is done to accommodate customers who prefer shopping after iftar leading to increase in footfall and sales
Ramadan themed campaigns: Ramadan campaigns such as family, togetherness and giving resonate with customers and help build brand loyalty.
Retailers strategically use attractive deals that resonate with the festive atmosphere, especially towards the end of Ramadan, GfK studies indicate. “The competitive retail landscape intensifies the use of discounts, with online platforms and pure players like noon and amazon playing a significant role,” Amar said.