Do retailers like what they see in the mirror?

It’s all about the experience — or at least that’s the philosophy IT retailers are being told to follow.

3757 days ago
paul

One of the key problems the retailers face is the prices they are charging relative to European stores (exchange rate only partially affects this). For many electronic items that are easy to carry, it makes no sense at all to buy in Dubai. For example, a friend sent me an email recently about a 'bargain sale' by a major local electrical retailer. But when I googled the price of the same items in the UK, I found they could be purchased 20% cheaper there. And that is including VAT - strip off VAT, and you have an even bigger cost differential. I don't blame the retailers alone, they are being squeezed by salaries and rents, the cost of the items wholesale is only a part of the costs passed on to the customer. But in these days of falling rents (commercial and residential) it does highlight the requirement for this to happen quickly, and for falls to be significant, otherwise Dubai's high cost base will quickly see further deterioration in the economy. The irony is that by trying to slow/stop property price falls, the authorities may end up damaging the economy more. The high cost of property and rent was essentially a huge tax burden on businesses that needs to be lifted if the flow of people and business out of Dubai is to be halted.

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3757 days ago
Arun Chawla

Dear Andrew, It's really interesting article and things have been put out in a perfect manner. I always enjoy reading your articles as they bring out the realities and inspire everyone to contribute to make this IT Community where every one can survive and enjoy the benefits. Cheers Arun Chawla

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3759 days ago
Davinci

Hi Andrew I really enjoy your thought provoking articles and always look forward to your editorials. The above article seems spot on and being in the Small Organised IT Market since the past 10 years have to point out one thing all retailers depend on the vendors which most retailers conveniently forget. Being vendor friendly is quite important in todays market where vendors can pick and choose to supply their easily cashable fast moving Products. Sadly most retailers forget this and choose to ignore the most important aspect of the channel and try to squeeze the vendors of every possible cent and offer horrible payment terms and astrocious return policies. ( take it back even if it is broken has`nt sold or is missing everything except hte product manual ) or else !! Basically retailers who do not respect the vendors might have bloomed during the boom years but the tables have turned and a very strong introspection is required to respect where the source of the goods originate from. Cheers Davinci

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