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Pre-Ramadan business down
Published in The Saudi Gazette on 31 - 08 - 2008

Ramadan shoppers seem to be less excited this year: Having spent all their money on holidays and children's entertainment and due to the hefty increase in the price of the commodities required in Ramadan, consumers are showing virtually no interest in visiting supermarkets and malls. This is a far cry from the old days when supermarkets were bursting at the seams with shoppers in the days preceding Ramadan.
Owners of supermarkets in the Eastern Province are worried since pre-Ramadan sales in supermarket outlets have dropped by about 35 percent as compared to last year.
Most of the retailers in the Kingdom have reported a similar drop in pre-Ramadan sales, as the holy month has coincided with the end of summer vacations and the re-opening of some of the international schools.
“Normally, these two promotions run separately but this year we have been forced to combine the two. Since people cannot avoid spending on school items, they have decided to reduce their Ramadan purchases, which has been affecting our sales,” the manager of a leading supermarket told Saudi Gazette.
Some shop owners feel that high commodity prices could also be a major factor in discouraging people from making bulk purchases for Ramadan.
The new measures being adopted by the government to restrain inflation have helped stabilize prices to some extent, but there is still no indication of a fall in prices. The price of rice, vegetables, meat and the items most in demand during Ramadan, remain high.
“The shortage of money has clearly affected their ability to purchase. This is mainly because people have just returned from their holidays,” another supermarket owner in Dammam said.
“This is the season when Saudi families spend a lot on household goods and food items to prepare for the holy month. But this year, they seem to have cut down on their expenses considerably. This could be because they have spent a lot on their holidays in and outside the country,” he said.
Another supermarket owner in Jubail said his locality, inhabited mainly by Saudis, has seen a considerable drop in pre-Ramadan sales. “People are still buying but not in huge quantities as in previous years,” he said.
The manager of another store in Al-Khobar which sells electronics and household items also said sales had dropped compared to last Ramadan. He said most Saudis as well as foreigners are still on vacation which also affects pre-Ramadan business. __


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