Families go on 'last' VAT-free shopping spree in UAE

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People doing last minute pre-VAT Shopping at Lulu Hypermarket in Al Barsha, Dubai.-Photo by Dhes Handumon
People doing last minute pre-VAT Shopping at Lulu Hypermarket in Al Barsha, Dubai.-Photo by Dhes Handumon

Abu Dhabi - Shopping for gold jewellery was on the rise over the last two weeks, according to shoppers and retailers.

By Ashwani Kumar, Dhanusha Gokulan

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Published: Sat 30 Dec 2017, 11:00 PM

Last updated: Tue 2 Jan 2018, 4:56 PM

Residents across the country are making the best out of their last chance for tax-free shopping before VAT gets implemented in the UAE on January 1, 2018.
From bread to milk, fruits and vegetables to other essential supplies, families living in the UAE are stocking up on essential items a day before VAT.
And luring them are the sundry discounts ranging from 25 to 75 per cent or more at shopping malls, hypermarkets and small shops across the country.
A majority of the people were also rushing to purchase electronic products such as televisions, mobile phones and laptops before VAT. Shopping for gold jewellery was also on the rise over the last two weeks, according to shoppers and retailers.
Roshni Raimalwala, co-founder of the Care2Share initiative, said: "I did indeed stock up on non-perishable items such as wheat, rice, long-life milk, sugar, tea etc. I shopped for 10 kilos instead of my usual 5kg. Supermarkets and retail outlets were very crowded, especially electronics stores, so my husband and I figured the best time to shop is at 10:00am when the stores open up."
Abraham Vadakkan, a Dubai- based employee of OTIS, the elevator company, headed out to a shopping mall on Saturday to buy a laptop. He said: "Laptops are expensive and making a saving on it makes a big difference. In this case, if I buy my laptop before VAT, I will save Dh175. It is a considerable saving." However, Abraham did say that groceries were not a priority purchase for him.
Residents like advertising professional Sarah Rizvi decided not to stock up on essentials as the crowds at supermarkets were too overbearing and essential products like fresh fruits and vegetables cannot be stocked up. "We did think of it, but since the lines at Carrefour and other supermarkets were so long, we changed our minds. The products we buy now can be used for a couple of months; we have to end up paying regular prices after that," said Sarah.
Mohammed Sharif, a government employee, also stated that he did not stock up over the weekend as he does not prefer to have processed products. "I've never been a big fan of processed food. However, I did stock up on some water and I also got myself a new phone."

Mega sale on electronics lure shoppers

Berkmen Thomas, a long-time Abu Dhabi resident, has a big family and said they have done a planned purchase.
"Yes, I have been stocking up on essential goods as I have a joint family. However, my shopping is also because of big offers at malls and shopping festivals. There are good discounts on electronic items. Of course, food items and dresses are among the main purchases. My two daughters have bought fashion wears. I am hopeful that top retailers will continue to offer discounts as it will balance out things," he said.
Fessy George, a single parent, was on a lookout for offers for the past few weeks.
"I have covered both Abu Dhabi and Dubai shops as there are offers on accessories, fashion items, non-perishable food products, optical and more things. When it comes to grocery items, I have picked canned stuff and those with longer shelf life. I have covered up as much ground as possible but some things like dining out and entertainment are beyond my hand."
Fessy, who runs Silky Pink Touch Beauty Salon in the Capital said prices will go up in her salon too after VAT comes into effect.
Haji Ali, an expat bachelor, along with his friends had started the groundwork for weeks now.
"I am going home on annual leave in January end and have already purchased everything. My friend is getting married somewhere in mid-2018, he too has done his purchase of dresses, gold, gifts and all."
The sales executive said for low-income employees like him, a salary increase in 2018 will be a big relief post VAT.

Shopping malls enjoy windfall

Storekeepers in electronic retail outlets stated that the shops have been exceptionally crowded in the last couple of days.
"It could also be that shoppers are taking advantage of the Dubai Shopping Festival (DSF) prices, however, a few shoppers did suggest that they are buying new products before VAT," said a salesman at Sharaf DG.
Mushrif Mall Abu Dhabi general manager Aravind Ravi put things into perspective and said that past few weeks have seen the biggest footfall at the shopping destination. Ravi noted that as a mid-plus mall, he had urged all shops to offer discounts.
"This is a good period for malls across the UAE. This trend started from October but in last 2-3 weeks there is an unprecedented surge. We get 28,000-30,000 average footfalls and it has gone up to 33,000-34,000 in past weeks. Usually this is a period when people spend outdoors barbecuing, but now they spend time shopping. Most shoppers purchase apparel and electronics items," Ravi noted.
dhanusha@khaleejtimes.com  ashwani@khaleejtimes.com  


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