Variety stores registered single-digit growth in 2021 and is expected to return to the 2019 level of sales by 2022. This is greatly attributed to the price-consciousness of consumers, as well as expansion and growth of outlets.
Amongst variety stores, those that were positioned as having lower price points proved attractive to consumers in the United Arab Emirates at a time of nose-diving consumer confidence and strong inflation that began in 2021 after the pandemic.
During the pandemic variety stores attracted consumers across socioeconomic divides due to the availability of affordable personal protective equipment such as masks and hand sanitiser. This has been a major game-changer when you consider that in 2020 masks could typically only be found at pharmacies or grocery stores, and would cost around AED50 for a box, while in 2021 variety stores offered the same quantity for as little as AED7.
Although variety stores is set to see solid growth in the forecast period, one factor hampering growth is likely to be the stronger rise of discounters. At present, there is only one discounter in the United Arab Emirates, but given its rapid expansion and popularity, it is expected that further players will enter the channel over the forecast period.
At a time when many retailers are closing down or reducing their footprints, variety stores in the United Arab Emirates are expanding beyond the busy hubs of Dubai and Abu Dhabi and opening stores in other Emirates, such as Ajman and Sharjah. Many variety stores are acquiring commercial areas for historic-low rents due to the situation in the market.
Consumers are finding it increasingly difficult to distinguish between mass and premium products, and the Japanese and Korean skin care products found in variety stores are especially good at blurring these lines. With their low price point and playful packaging, many consumers are attracted to what they consider good quality and value for money.
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Understand the latest market trends and future growth opportunities for the Variety Stores industry in United Arab Emirates with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories. Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories, although they may also sell grocery items. Includes fixed-price stores (e.g. dollar stores) and catalogue showrooms. Example brands include Dollar General, Woolworth (Germany), and Miniso.
See All of Our DefinitionsThis report originates from Passport, our Variety Stores research and analysis database.
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