46% of UAE consumers expect the effects of the pandemic to last at least another year


June 29, 2021 | By 123

Ingka Shopping Centre, Ekaterinburg

Increased vaccinations (47%) and continued protective and social distancing measures (28%) will be key to rebuilding UAE consumers’ confidence to visit public places (stores, restaurants and supermarkets) moving forward, according to a study commissioned by Kearney; the third in a series of surveys exploring consumer shopping habits since the onset of the pandemic.

The results reveal that as spending habits continue to evolve, UAE consumers stay cautious, with 46% expecting the effects of the pandemic to last at least another year. It also highlights that expenditure on essential items (which constitutes of food and beverage (F&B) as well as non-F&B items) has shown a sustained increase, while spending on non-essentials (clothes, bags and accessories) continues to decline.

73% of consumers have admittedly changed their shopping habits to adapt to the “new normal”, with a larger portion of women reporting changed habits (81%) than men (67%). Those aged between 30-45 recorded the highest change (80%) followed by those under 30 years of age (73%).

When looking more closely into how habits have changed, 23% have reduced expenditure on essential items by up to 50% compared to pre-pandemic, however, over a third (34%) of respondents have increased spending by over 25%. Conversely, spending on non-essentials has decreased by 41%, with only 23% of respondents increasing spend in this area.

Within the essential items category, 16% of respondents have upgraded to higher priced, better quality items, with the highest increase shown for fruits and vegetables (30%), as well as meats and dairy (22%)

A fifth (21%) of respondents have highlighted that they expect to spend more on non-essentials in the coming months, particularly on activewear (31%), workwear (30%), casual wear (20%), footwear (20%), evening wear (17%), and bags and accessories (8%).

“The pandemic has fundamentally changed the way consumers view health and safety measures and efforts. As residents adopt to the new normal, hygiene and hygiene transparency have become vital. Spending is being driven by the easing of restrictions, higher awareness of health and wellbeing, and expectations to return to the office,” commented Debashish Mukherjee, Partner & Head, Consumer Industries and Retail Practice at Kearney Middle East

As spending habits evolve, e-commerce continues to penetrate all categories. The survey highlights that UAE consumers are now more comfortable purchasing essentials online compared to last year. When questioned about the motivations behind this, convenience (58%) was the main driver, followed by COVID-19 prevention measures (25%), assortment of products (13%) and finally, price (4%).

Interestingly, COVID-19 prevention measures ranked third for online shopping for non-essential items (21%), preceded by convenience (49%) and price (25%), with assortment of products (5%) ranking last.

While increased vaccinations and continued protective and social distancing measures were the key drivers of restoring consumer confidence in visiting public places, a contactless in-store experience (16%) and alternative shopping options (9%) such as click & collect, and curb-side pick-ups were highlighted as other methods of shopping that would increase confidence.

Saying this, 40% respondents highlighted an offline-shopping preference for essential items, and 30% for non-essential items, particularly for those products that require inspection for quality, freshness and fit.

“For UAE consumers, convenience is driving online purchases with COVID-19 concerns becoming a secondary factor, indicating the sustenance of the online shift. However, the physical store still plays a strong role across all categories which require the customer to touch, feel and try the product. Retailers will need to adopt a differentiated strategy to make consumers feel safe in stores; UAE consumers are heavily indexed towards vaccinations and protective measures; however, this will vary across markets and its essential for stakeholders, mall property owners and retailers to monitor the evolving face of retail to ensure they stay relevant,” concluded Mukherjee.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau
Food consumption in the GCC to grow at a steady pace

Food consumption in the GCC is set to grow at a CAGR 

Continue Reading

November 29, 2023 | By RetailME Bureau




Download Images RetailME Magazine