Leading supermarket chains in the UAE are slashing the price of thousands of staple goods over customer concerns about the cost of living and rising competition from budget retailers.
French retailer Carrefour, part of the Majid Al Futtaim group, cut the cost of 1,000 products last month, with rival brand Choitrams following suit by lowering the price of 10,000 items this week.
These discounts are not part of typical Ramadan supermarket promotions but a response to consumer demand for better value in the aisles.
At Choithrams, prices tags were reduced on almost a third of essential products, with further discounts to be applied later in the year.
Supermarket survey
The price revisions were made after consultation with thousands of regular shoppers.
Choithrams chief executive Mark Mortimer-Davies said the cost of everyday goods was the biggest factor driving shopping habits.
“We have a loyalty programme, so we did survey them with 10,000 face-to-face interviews and we've probably done double that number online – price became the biggest concern,” he said.
“We asked the question, they've given us the answer, so now we're acting. In some categories people love to have a great imported item but on a daily basis they want a bit more value. Value products are 6 per cent to 8 per cent of the market.”
Everyday value
Chocolate biscuits, cat food, shampoo, deodorant and cleaning products were among items subject to the biggest price cuts of up to 25 per cent.
Food inflation has risen around the world due to several factors, including high energy costs, geopolitical conflict and extreme weather, all of which can disrupt supply chains.
While early 2026 figures hint at stabilising food prices since the peak of 2022, inflation remains above the historical average, with a 3.1 per cent annual rise in the US last year.
Europe recorded double-digit inflation for chocolate, frozen fruit and beef, according to data from Eurostat, with the sharpest rises in Turkey and Romania, while wild fluctuations in food prices were seen in India in 2025.
While the price of cereal and dairy products remain stable, those for meat and processed goods have increased.
Easing strain on budgets
Dubai resident and mother-of-two Emily Evans welcomed the price cuts as a 'good start' but said her family will still have to carefully watch every dirham to manage their household budget.
“We have a budget that we try and stick to every month and we track that,” Ms Evans said.
“Shopping is crazy expensive … We buy the private label stuff, not because their packaging is stunning but it’s so much cheaper.”
Ms Evans is skeptical to how much of a difference it’ll make to her overall budget, however.
“No matter how much they’ve reduced it by, I’m not going to have that much more money left at the end of the month to spend on other stuff, so I don’t think it will affect my family’s finances that much, but it’s a good start.”
A mother-of-three in Dubai, who asked not to be named, said it was important for businesses to take note of the challenges facing residents in a diverse society in which financial circumstances can greatly differ.
“We live in a society where we don’t pay tax, that’s one of the benefits of living here, but the cost of living is high," she said.
"There’s a spectrum of financial wealth here, from workers all the way up to the billionaires. I’m a comfortable, fairly wealthy woman, but I shop at four different supermarkets for a reason. If they drop the prices of toilet paper and shower gel and items like that, then that’s a good thing.”
Competitive market
Mr Mortimer-Davies, who has been in the UAE for 42 years, said the impact of budget brands Aldi and Lidl on the UK market hasforced more established supermarkets to cut prices to stay competitive.
A similar trend is now being seen in the UAE, he said, with the arrival of low-cost retailers such as Vivo, Nesto Hypermarket and Union Coop.
Greater focus will now be placed on extending Choithrams' value range, due to high demand, Mr Mortimer-Davies said.
“We’ve divided our business into value, then essentials and then premium imports,” he said. “When we looked at our business, we didn't have enough of the value sector products. We’re now actively sourcing those.
“We're partnered with Sainsbury's in the UK, so we sell their products here. They've given us a lot of insight of how they managed Aldi and Lidl, and their speed of growth there.
“There are some good brands here, the brands that are cheap and perhaps a little bit cheerful, but there are those operators now that have very good products at a good value and that's where we're looking.”
Mohamed Al Hashemi, chief executive of Union Coop, which has 28 branches in Dubai, said competition in the retail space is healthy for operators and consumers.
"Our pricing is monitored and reviewed daily to ensure competitiveness and to consistently support consumers across the UAE," he said.
"The UAE retail sector is highly competitive, with strong local and international players both offline and online, alongside new market entrants. We view this competition as healthy, it drives efficiency, strengthens value, and challenges us to continuously enhance our offerings."
Mr Al Hashemi said its branches will offer discounts of up to 60,000 on more than 3,00o products under its 'Year of the Family' Ramadan campaign.
Global prices
The UN Food and Agriculture Organisation's Food Price Index averaged 128.8 points in September 2025. The monthly trade-weighted index underwent an increase of 3.4 per cent compared to the same month of the previous year.
In January, Carrefour, which Majid Al Futtaim owns the exclusive rights to run in the UAE, announced price reductions on more than 1,000 essentials.
The price reduction applied to a range of essential items, such as fresh food, beverages, dairy products, baby products, detergents, skincare and bodycare products.
Also included were household staples such as rice, bread, tomatoes, bananas, eggs, sugar, flour, water, chicken, salt, milk, tea and tissues.
“Remaining true to Carrefour’s customer-centric focus, this initiative will ensure families can stretch their budgets further without compromising on quality,” a representative for the supermarket said.
