Al Futtaim, the UAE retail group, relaunched its Aftron value electronics brand on Tuesday, hoping it can boost sales in a slowing economy. The product range of the brand, originally launched 23 years ago, has been slimmed down to 150 items from 250. The products will be sourced from markets such as Turkey and Korea. Al Futtaim forecasts the move will double Aftron sales across a number of categories over the next year. “We realised ten months ago that the economy was slowing and a new demographic was appearing,” said Sean Connor, managing director – electronics for Al Futtaim. He said traditionally Aftron had appealed to the local Arab and Asian communities. “The challenging economy has now seen a shift in people that will accept a value brand as long as it matches their aspirations. We have sourced brand new, modern, reliable products that are aspirational yet nearly half the price of premium brands and often more than that.”
The retail sector has faced slowing growth over the past 20 months as a low oil price combined with company lay-offs affected domestic consumer sentiment. The strong US dollar, to which the dirham is pegged, has also made the UAE an expensive destination for visitors many of its traditional source tourist markets.
Other retailers have also responded to more challenging trading conditions. Virgin Megastore has changed its retail mix to offer lower priced, higher margin products and Ace hardware has extended its product line to appeal to women and families.
ascott@thenational.ae
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