Market traders waiting for an upturn

Souqs around the country report slow trade despite signals the economy is on the mend and stall holders see little sign of recovery.

Sales at the Sharjah central souq have dropped more than 50 per cent between December and April.

Markets in Sharjah are struggling despite the signs and promises of a stabilising consumer economy. Vendors at the Sharjah central souq say sales fell more than 50 per cent between December and last month, usually one of their strongest periods. "Business now is very slow," said RP Sathar, a salesman at Mig Electronics.

"In April last year we sold Dh150,000 [US$40,83] worth of goods. But this April the shop's total sales were Dh95,000." According to Mr Sathar, April is supposed to be a good sales month before the usual summer decline. But since the beginning of the year, the market, also known as the "Blue Souq", has seen tourists arrive by the busload, look at the goods, take photographs and go, according to vendors. "We have become antiques now," Mr Sathar said.

Visitor numbers at the market have also gone down. "Last year we were receiving an average of 10 customers every hour, and about half of them would buy something," said Aravind, a manager at Nasa Perfumes. "Now you can get two or three people per hour and you would be lucky if they buy anything." "The problem is that people now don't want to spend the sort of money on some goods, especially carpets," added Jalal Didar, a branch sales manager at Persian Carpet House and Antiques. "They now stop and think when you tell them a price. When they hesitate, you know they may not buy the carpet."

The shop has experienced a drop in sales of more than 75 per cent in the past five months. "In December, we sold Dh400,000 worth of carpets. Last month, Dh100,000, you see what I mean." Vendors at the Friday Market in Masafi also reflected the grim situation. The market has seen more window shoppers over the past few months than visitors who are prepared to spend. The famous bargain centre nestled in the mountains along the Dubai to Fujairah road continues to receive a constant flow of tourists and other visitors.

"But when they come here, they are not buying, they just look, ask questions, take pictures and go," said Ashukula Naim, an Afghan carpet seller for Muna Carpet Sales Shop. "It is not like before. A year before I used to sell up to 20 carpets a day. But look, it is almost 6pm and I have sold only two carpets today," said Sadar Mohammed, a salesman at Abu Rashid Carpet Shop. "And it has been like this for months."

Mohammed Basit, the owner of Abu Sultan Gift and Novelty Shop, said he had been operating his souvenir store for the past 20 years but had never seen a time where business was as bad as now. "Things here are good quality, cheap and we negotiate price. But still people don't buy," Mr Basit said. "People still come. Buses bring tourists but very few will actually buy something. And that is not good for our business."

According to Euromonitor International's country market insight, "The culture of bargain hunting and cutting back on non-grocery purchases is expected to continue in 2010, as consumers have started to adopt a more cautious 'wait and see' approach to non-grocery retailing owing to the economic situation." Despite the decline in the number of shoppers, retailers at the two markets are still optimistic that their businesses will weather the storm - provided it does not last too long.

"We sell good things at best prices," said Mohammed Sued, a salesman at Masafi Flowers. "So we are not going to close down, shoppers will come back soon and the market will continue." Mr Didar said he hoped that in September, after Ramadan, business would "come back to normal". @Email:[e-mail]