The proliferation of supermarkets and specialty stores has provided consumers with a broader range of options and competitive pricing
KUWAIT CITY: Local supermarkets are experiencing a noticeable downturn in sales, a trend that both consumers and shop owners attribute to several factors beyond seasonal variations. The main factors contributing to market stagnation can be summed up as follows: Increased competition and variety – one of the residents, who identified himself as Bu Hamad, highlighted the rise in the number of food sales centers as a key factor.
The proliferation of supermarkets and specialty stores has provided consumers with a broader range of options and competitive pricing, impacting the performance of traditional markets. Growth of e-commerce – a market analyst, Al-Hajri, pointed to the resurgence of online shopping as a significant driver behind the contraction of traditional retail markets. The convenience and variety offered by e-commerce platforms have shifted consumer preferences away from physical stores. Add to this the travel trends. In this respect Ghazi Al-Ali noted that the summer travel season has led to a sharp decline in sales of food, perfumes, and electrical appliances.
Many consumers spend their ‘extra’ income on travel and related expenses, cutting down their spending in local supermarkets. Shop owners and consumers also cited the high cost of living, including rising rents in shopping malls, as a factor in the current market stagnation. The increased financial pressure on households has resulted in more cautious spending.
A field investigation by the Arab Times daily revealed calls from the public for the government to address several issues to help revive the market. Some of the key suggestions include salary increases. There is a push for the government to reconsider the salary freeze that has been in place for years.
Many believe that adjusting salaries in response to inflation would provide consumers with more spending power, potentially boosting market activity. There is also a call for stricter enforcement against counterfeit products, which are perceived to undermine legitimate businesses and affect market dynamics. The economists argue that the current recession in the supermarket sector is not solely attributable to inflation or rising rents.
They suggest that the decline in traditional retail sales is more closely related to shifts in consumer behavior and market dynamics rather than broader economic conditions. Looking ahead, experts believe that the easing of travel restrictions and the resumption of family visits could help stimulate sales in local markets. As consumers return to their regular routines, there may be a rebound in spending that could alleviate some of the current stagnation in the retail sector.
Source: Zawya
