Retailers revving up for race

With a huge influx of tourists about to descend on the capital for the Abu Dhabi Grand Prix, huge demand for racing car-related merchandise is expected.

Al Wahda Mall in Abu Dhabi is capitalising on the Formula One frenzy with indoor displays as it hopes to spark additional sales.

With the second Abu Dhabi Grand Prix just around the corner, retailers are hoping to cash in again on the Formula One frenzy.

Many are going the extra mile to lure race fans who will be heading to the UAE for the final GP of the season on November 14 at the Yas Marina Circuit.

Al Wahda Mall has decked out its lanes with grand prix paraphernalia such as cardboard cut-outs of racing drivers and its own "circuit" and "pit stop".

The mall will host race-themed activities and contests, while complimentary buses will shuttle tourists there from Yas Island hotels on the weekend of the grand prix, says Mohammed Nauman Thakur, the general manager of the mall.

Mr Thakur expects a boost in sales of between 10 and 15 per cent compared with a normal shopping month, thanks to the extra visitors and promotional activities.

"I'm hopeful that when we've done the promotions in the mall, the sales will improve considerably," he says.

Early indications of the turnout are positive. At least 90 per cent of the 42,500 seats are already sold, organisers say. And all of the grandstand seats, at Dh2,000 (US$544) each, have been snapped up.

Big-name acts for the nightly performances such as Prince, Kanye West and Linkin Park are also expected to draw the crowds.

Last year the inaugural Abu Dhabi Grand Prix was a boon for retailers. Abu Dhabi Mall had a 10 per cent increase in customer traffic, according to Olivier Berthon, its then-property and marketing manager.

Traffic at the capital's airport increased by 10 per cent last November compared with the same month in 2008, says Dan Cappell, the vice president of business development at Abu Dhabi Airports Company (ADAC).

The GP also boosted the airport's overall duty-free sales last year by 12.7 per cent, compared with 2008.

Huraiz al Mur bin Huraiz, the chief commercial officer at Abu Dhabi Airports Company (ADAC), is optimistic the flow of tourists through the airport this year will also translate into a boost in duty-free sales.

"With Formula One approaching, ADAC will be witnessing an increase in traffic at Abu Dhabi International Airport," Mr bin Huraiz says.

"This international mega-event, combined with the unique and exclusive retail offering, is bound to have a positive effect on the sales numbers for November 2010 at the airport."

A typical buy for tourists here is gold, but jewellery retailers are not banking on bumper sales from race fans.

Tushar Patni, the owner of Ajanta jewellers and a member of the Abu Dhabi Gold and Jewellery Group, says the high gold price may limit sales.

"Last time, we saw a little bit of an inflow of tourists … the high gold prices, that might be one of the issues," Mr Patni says.

But among the shops where the tills are sure to be ringing will be those selling F1 merchandise at Ferrari World theme park.

"Between the two stores and our merchandise carts we will have, basically, the largest collection of Ferrari-branded merchandise under one roof," says Kevin Ulgenalp, the director of merchandising for Farah Leisure Parks Management, which manages Ferrari World.

The theme park, which is scheduled to open to the public tomorrow, features a 1,200 square metre Ferrari shop - the largest of its kind - near the entrance.

In addition to Ferrari merchandise, the theme park will also stock traditional souvenirs such as branded cups, mugs and T-shirts, as well as race-related items built around the car maker's F1 team.

The store and kiosks will also sell apparel related to popular drivers such as Fernando Alonso and Felipe Massa.

"We expect that during race week, these will be the popular items, particularly if Alonso ends up winning and becoming the champion," says Mr Ulgenalp. "Then we will probably expect those items to sell quite well during that week. We expect it to be one of the busiest times.

"We are gearing up to make sure we have merchandise, fan items, racing team items, in enough quantity to accommodate our guests."