As Dubai joins other major cities worldwide in easing restrictions imposed to contain the spread of the coronavirus and re-opens shopping malls, retailers are breathing a sigh of relief but also adapting their businesses by ramping up their online offerings to attract customers.
After being shut for nearly a month, Dubai malls are allowed to open from 12pm to 10pm at 30 per cent capacity. Shoppers must also wear a mask, keep their distance and limit their time in the mall to three hours. Abu Dhabi malls are also preparing for reopening, but no dates have been set yet.
"Opening malls at 30 per cent capacity is definitely a good step towards testing life after Covid-19 and developing momentum towards return to normal," Rabia Yasmeen, senior analyst at Euromonitor International, said.
With stores being the lifeblood for every retailer, it is important to provide confidence to customers that it is safe to come back to shop.
Among those set to benefit are retailers who failed to capitalise on online shopping and those who struggled to deliver orders in a timely manner, she added.
In addition, steps to re-open the economy can potentially alter some retailers' plans to furlough staff, though this depends on customer footfall, retail activity and a slowdown in reported coronavirus cases, she said, all of which would boost retailers' confidence.
As in other parts of the world, large swathes of the retail sector have been impacted by lockdown measures aimed at containing the coronavirus, which forced store closures and slashed revenues.
"This pandemic has been a wake-up call for the entire retail industry," said Panos Linardos, chairman of the Retail Leaders Circle, a global platform that holds industry conferences in the US, Middle East and Asia. "Pre Covid-19, brick-and-mortar accounted for 98 per cent in the region and was already in an existential crisis. With stores being the lifeblood for every retailer, it is important to provide confidence to customers that it is safe to come back to shop."
Health and safety measures in the malls include increased disinfection, temperature checks, thermal screening tests and ‘sanitisation tunnels’. For example, Nakheel has required that all customer service desk staff get tested for Covid-19, increased security staff by 30 per cent and installed sanitisation tunnels at larger malls for key workers.
Many retailers praised the government’s move to reopen the malls and emphasised steps taken to comply with health and safety requirements.
Takakiyo Fujita, managing director of Sony Middle East & Africa, said the phased opening helps "balance public health considerations with sensitivity to the challenges faced by the retail sector, a vital part of the emirate’s economy".
Pankaj Kumar, head of Omnichannel Retail at Jumbo Group, said he is confident that the proactive action and testing by the authorities will help the UAE "see a flattening of the curve soon, and people will gradually feel comfortable enough to venture out to the shops".
The government's decision to gradually restore retail activities highlights the importance of the sector as a key pillar in Dubai's economy and a major draw for tourists under normal circumstances.
Several prominent non-food retail businesses saw sales decline by as much as 60 per cent in the first half of March, compared to the same period last year, however, grocery retailers witnessed an increase in sales of as much as 40 per cent, according to KPMG.
Kuwait's Alshaya saw its revenue plummet 95 per cent as it was forced to close nearly all of its 4,500 stores across 20 markets. Now, Alshaya, which has nearly 90 international franchise brands in its portfolio – including Starbucks, PF Chang's and H&M – is reopening its UAE stores progressively "to ensure full implementation of government guidelines", a spokesperson said.
“We will open certain restaurants where practical, and will continue with our e-commerce and digital catalogue offers as well as food and Starbucks delivery, carhop and drive-through services,” Alshaya said.
The pandemic forced mall operators and retailers like Alshaya and Carrefour to widen their e-commerce operations given the uncertainty of when restrictions might ease. The crisis is likely to change the business environment, how companies operate and their revenue streams going forward.
Emaar Malls collaborated with noon.com to roll out a virtual Dubai Mall on the site with 37 brands currently online, such as Go Sport, Sharaf DG and The Toy Store.
Majid Al Futtaim launched an online marketplace through carrefouruae.com for its shopping mall tenants. There are 28 shops currently on the site, including Borders, ELC and Tavola.
Tenants who signed up for the platform are entitled to commission-free transactions until the end of May and 30 days free last-mile delivery.
"In dealing with such unprecedented challenges, it is important that we work collaboratively with our partners and stakeholders," said Fouad Sharaf, managing director for MAF Shopping Malls in the GCC.
Nakheel will also soon roll out a new service, whereby goods can be ordered online and picked up at a dedicated collection point.
But Mr Linardos of the Retail Leaders Circle said online shopping remains a very small portion of sales in the region. “Clearly recent online growth doesn’t nearly offset loss of foot traffic for the majority of retailers in the region,” he said.
With rent accounting for the majority of their fixed costs, “retailers are faced with survival decisions”, Mr Linardos said. “Their primary focus in the short term remains on preserving cash and staying in business.”
David Macadam, chief executive of the Middle East Council of Shopping Centres, said operating at 30 per cent capacity may not be financially viable for many businesses.
"However, it is a start to the resumption of business and the retail industry," he said. "Concerns about being in public places will remain a real issue for many people. Expectations for traffic flow in malls is limited and will likely remain subdued for many weeks and months ahead."
During the Covid-19 lockdown and as precautionary measures continue, mall operators have been offering some relief to their tenants.
Al Futtaim Group, which operates Dubai Festival City and Festival City Plaza, said last month it would offer a Dh100 million fund to cover up to three months' rent relief for eligible tenants across its malls.
Nakheel also announced last month that it is offering a Dh230m relief package for its retail and hospitality tenants within its malls and small business owners within its master communities.
In the UAE and around the world, governments are weighing the difficult decision between protecting public health and reopening their economies.
"We believe that governments will have to balance the need of the economy with ensuring that the Covid-19 is contained," Monica Malik, chief economist of Abu Dhabi Commercial Bank, said. "As such we envisage that the restrictions will be eased in a phased and gradual manner."
The%20specs
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UAE currency: the story behind the money in your pockets
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm
Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
Director: Anu Menon
Rating: Three out of five stars
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The bio
Favourite food: Japanese
Favourite car: Lamborghini
Favourite hobby: Football
Favourite quote: If your dreams don’t scare you, they are not big enough
Favourite country: UAE
As it stands in Pool A
1. Japan - Played 3, Won 3, Points 14
2. Ireland - Played 3, Won 2, Lost 1, Points 11
3. Scotland - Played 2, Won 1, Lost 1, Points 5
Remaining fixtures
Scotland v Russia – Wednesday, 11.15am
Ireland v Samoa – Saturday, 2.45pm
Japan v Scotland – Sunday, 2.45pm
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
UAE currency: the story behind the money in your pockets
Two-step truce
The UN-brokered ceasefire deal for Hodeidah will be implemented in two stages, with the first to be completed before the New Year begins, according to the Arab Coalition supporting the Yemeni government.
By midnight on December 31, the Houthi rebels will have to withdraw from the ports of Hodeidah, Ras Issa and Al Saqef, coalition officials told The National.
The second stage will be the complete withdrawal of all pro-government forces and rebels from Hodeidah city, to be completed by midnight on January 7.
The process is to be overseen by a Redeployment Co-ordination Committee (RCC) comprising UN monitors and representatives of the government and the rebels.
The agreement also calls the deployment of UN-supervised neutral forces in the city and the establishment of humanitarian corridors to ensure distribution of aid across the country.
KILLING OF QASSEM SULEIMANI
KILLING OF QASSEM SULEIMANI
Read more from Aya Iskandarani
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Brief scoreline
Switzerland 0
England 0
Result: England win 6-5 on penalties
Man of the Match: Trent Alexander-Arnold (England)
Three ways to get a gratitude glow
By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.
- During your morning skincare routine, name five things you are thankful for about yourself.
- As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
- In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.
ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Results:
5pm: Abu Dhabi Fillies Classic (PA) Prestige Dh 110,000 1.400m | Winner: AF Mouthirah, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Abu Dhabi Colts Classic (PA) Prestige Dh 110,000 1,400m | Winner: AF Saab, Antonio Fresu, Ernst Oertel
6pm: Maiden (PA) Dh 80,000 1,600m | Winner: Majd Al Gharbia, Saif Al Balushi, Ridha ben Attia
6.30pm: Abu Dhabi Championship (PA) Listed Dh 180,000 1,600m | Winner: RB Money To Burn, Pat Cosgrave, Eric Lemartinel
7pm: Wathba Stallions Cup (PA) Handicap Dh 70,000 2,200m | Winner: AF Kafu, Tadhg O’Shea, Ernst Oertel
7.30pm: Handicap (PA) Dh 100,000 2,400m | Winner: Brass Ring, Fabrice Veron, Ismail Mohammed
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
RESULTS
5pm: Sweihan – Handicap (PA) Dh80,000 (Turf) 2,200m
Winner: Shamakh, Fernando Jara (jockey), Jean-Claude Picout (trainer)
5.30pm: Al Shamkha – Maiden (PA) Dh80,000 (T) 1,200m
Winner: Daad, Dane O’Neill, Jaber Bittar
6pm: Shakbout City – Maiden (PA) Dh80,000 (T) 1,200m
Winner: AF Ghayyar, Tadhg O’Shea, Ernst Oertel
6.30pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,200m
Winner: Gold Silver, Sandro Paiva, Ibrahim Aseel
7pm: Masdar City – Handicap (PA) Dh80,000 (T) 1,400m
Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
7.30pm: Khalifa City – Maiden (TB) Dh80,000 (T) 1,400m
Winner: Ranchero, Patrick Cosgrave, Bhupat Seemar
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
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