Gulf retailer takes flak over refunds

DUBAI. 16th March 2010. MIRDIF CITY CENTRE OPENING. The first Pottery Barn store in the Middle East at the new Mirdif City Centre shopping mall in Dubai which opened yesterday (tues) Stephen Lock / ThShow more

Angry shoppers have launched a social media backlash against MH Alshaya, one of the biggest retailers in the Middle East, after the company stopped offering cash refunds.

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Alshaya, which is the partner in the Gulf for brands including H&M, Topshop, Starbucks and Debenhams, rolled out a new refund scheme across the Middle East last month where unwanted goods would no longer receive a cash or credit card refund. Customers instead receive store credit on a card, which is valid for up to 12 months in any of Alshaya's 55 different branded stores.

But the new policy has caused a social media stir as Gulf shoppers complain it is not in line with the international brands' policies.

Twitter users and blogs were abuzz yesterday with complaints, particularly in Saudi Arabia, where a boycott against Alshaya's change of tactics first surfaced.

"They should be treating us the same as consumers everywhere else," said Mai Al Shareef, a researcher based in Riyadh who began the campaign on Twitter to boycott Alshaya through #noshaya. "They are just seeing to their needs and being greedy. This policy is unfair. People should be able to get their money back," she said.

Many Twitter users said they would start ordering goods from international brands' own websites and have them shipped to the region, rather than buy in a store operated by Alshaya.

"I told the guy H&M the policy was silly, he said management have their reasons! Really? Is it to make sure no [Saudi Riyals] leave the register?" tweeted @sara_alhaidar.

Alshaya runs more than 55 brands across the Middle East and operates 2,000 outlets in 15 countries. Not content with calling for a boycott of Alshaya stores, Twitter users have also been contacting the Twitter pages of the international brands to voice their displeasure at Alshaya's refund scheme. The new refund rules are not against the law in the UAE, where most retailers do not offer a cash or credit card refund. It is common throughout the Emirates for stores to offer credit.

In response, the company said: "Alshaya was the first retail company in the region to offer refunds, and we continue to do so. Customers returning faulty or damaged goods are entitled to a full cash refund within the specified period and with proof of purchase, and we always comply with local laws."

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