Retailers rejoice as shoppers prepare for new school term

Dmitriy Shironosov/Alamy via Reuters Connect

• Expect AED3bn back-to-school sales
• Spending spree for 1.5m students
• Promotions a big influence

An estimated 1.5 million students across the UAE are expected to enrol for the new term on Monday – and retailers are welcoming the traditional spending spree for everything from school uniforms to stationery.

This year’s back-to-school shopping sales in the UAE are predicted to reach about AED3 billion ($820 million).

“Overall, there is expected to be a 5 to 8 percent increase in back-to-school spending this year,” says Mansoor Ahmed, head of education at Colliers Mena.

Surveys conducted in the UAE reveal that the average expenditure per student for back-to-school shopping is approximately AED2,000 ($545). That may appear high but is almost half the average amount spent in the US.

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“For parents with children transitioning to middle and high school, the financial burden will be even higher. New electronic devices are becoming increasingly essential for modern education,” Ahmed says.

Ali Shaaban, senior manager for growth strategy at e-commerce platform Noon, says laptops and tablets are among the top sellers this year, alongside branded backpacks and stationery sets.

According to Colliers Mena research 91 percent of parents say that promotions influence their purchases.

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Sharjah Chamber of Commerce and Industry kicked off its back-to-school promotion in earnest this week with deals and discounts reaching up to 80 percent on a large selection of school products.

The hunt for discounts comes as the Central Bank of the UAE is projecting inflation for 2024 and 2025 at 2.3 percent.

That is well below the global average of 5.9 percent and 4.5 percent respectively. The cost of food, rent and other essentials continues to rise, while interest rates have put pressure on credit card shopping.

Mohammed Feras, associate vice president of Dubai Festivals and Retail Establishment, currently running the 27th annual instalment of the Dubai Summer Surprises, says this year has been as busy as ever, with almost 4,000 outlets taking part.

“It’s not like parents are tightening their budgets or anything, but they are spending wisely on the products,” he says. “They’re very smart when it comes to making the purchases.”

Education costs made up 3.7 percent of Dubai’s consumer price index in June, according to the latest data from the Dubai Statistics Centre. This is on a par with the previous month.

Ruban Shanmugarajah, CEO of Babyshop UAE, says that back to school “remains one of the most significant periods for retailers”.

“Value remains important, particularly given the broader economic context. But it’s evident that during this season parents are willing to invest in high quality items that their children love that will last throughout the school year,” he says.

Nancy Ozbek, general manager at Times Square Center in Dubai, says that there has been a notable shift towards more mindful spending. “Parents today find greater satisfaction in investing in sustainable and educational products,” she says.

The Emirates Consumer Protection Association has warned businesses against hiking up prices at this time to take advantage of the imminent start of the school year.

In a statement chairman Mohammed Khalifa Al Muhairi stressed the need for commercial institutions and schools “to ensure all support to families, by providing multiple options for supplies at reasonable prices”.

They should exploited through exaggerated prices or monopolisation of goods that are in high demand, he added.