Shopkeepers in Dubai will not have to pay licence fees to launch sales as the stores open around the clock this coming Eid, relieving them of a financial burden.
Retailers normally have to pay a fee and seek approval from Dubai Events and Promotions Establishment (Depe) if they wish to put on a promotion, with permits often taking up to 10 days to be approved.
But this Eid, Depe will waive all fees usually levied to retailers and wants stores to focus on attracting early morning shoppers.
"Retailers will be granted blanket permit [sic] to run any type of promotion during the period 18th October to 2nd November, 2012, which should be late night early morning sales, discounts and special offers," said a circular to retailers seen by The National.
"However, participating outlet [sic] are expected to run additional promotions on weekends to promote late night and early morning shopping."
For three consecutive weekends over the Eid period, beginning on Thursday next week, stores will open in malls from 10am on Thursday and stay open right through until 1am the following Sunday.
Depe is encouraging retailers in the emirate to run promotions to coax shoppers to the malls at what are likely to be quieter periods during the middle of the night and in the early morning.
"All outlets located in participating shopping malls will not be charged any fees to run promotions during this period," said the circular, without specifying what the normal fees were for promotions.
"DED [Department of Economic Development] will conduct random inspection [sic] in shopping malls hence offers have to be clearly highlighted and communicated to consumers," it added.
Depe declined to comment on the move yesterday.
Despite the mounting extra work required in running stores for 24 hours a day, retailers welcomed the move to waive fees and hoped promotions would drive traffic during quieter hours.
Nadeem Khanzadah, the head of retail at Jumbo Electronics, said the gadget and electronics store would run promotions during Eid, even after a busy Gitex Shopper event last week.
"There's some Eid activity and GCC tourists," he said. "We will look at running some promotions because the local residents have bought at Gitex, but Eid will see more Saudi and Qatari tourists."
Jumbo is examining promotions on specific products, such as smartphones, rather than a blanket promotion across its full range of electronics, said Mr Khanzadah.
Other retailers were less sanguine about the prospect of being encouraged to put on promotions because the extra work involved in opening for such an extended period is set to increase costs.
"They are obviously not retailers who are deciding these things," said one retailer, who asked not to be named.
"They are increasing our costs, then encouraging us to do promotions, which lower our profits and margins. Our margins dip and our costs increase."
Dubai Shopping Malls Group (DSMG), in association with Depe, yesterday announced it would give away cash prizes worth Dh1 million (US$272,257) during the Eid period, with 20 malls participating.
"Through our established network of member malls, we will ensure that the malls share the same festive spirit in Dubai and align with the Government's effort to boost tourism and the retail sector," said Majid Al Ghurair, the chairman of DSMG.
"Dubai has always been known for record-breaking initiatives and as always the city is living up to its reputation of being the quintessential value shopping destination, bringing an all new experience for its people."
