Dubai Consumer Mirror: Retail Therapy

Friday, December 12, 2008

Retail Therapy

Firend: Do you know much MoE wants charge me for that stand I want to rent? You know, the tiny ones you see in hallways - usually selling stuff you'd only get at the Everything-for-one-dirham stores?
Me: How much?
Friend: Dhs 720,000 ... per year.

Basically, my friend needs to secure Dhs 2000/-, everyday, just to cover RENT only! Many businesses in Dubai prefer to live in Denial to what is happening around them.

How long do you think they'll last?

9 Comments:

MoE being an abbreviation for Money over Everything. Ridiculous amount.

By tobasco, at December 12, 2008 at 3:40 PM
If 720k for a small stall, how much are they asking for a small shop?

Unbelievable !!

By Anonymous, at December 12, 2008 at 4:42 PM
Rentals for retail locations have gone up much faster that residential areas. The businesses are also partly responsible for this on account of reckless expansions to enlarge footprint.

Some of the retail business are already non viable (I work with one of the larger retailers) and I guess the current financial grief will only speed up the shake out.

Free market dynamics!!!

By Dubai Photo Story, at December 12, 2008 at 5:01 PM
You've got to be kidding me!!!!!!! I wonder if those stands even make that much of money per day... Plus that's just their stand rent...they must have other expenses also...sheesh...

By The Ego, at December 12, 2008 at 7:19 PM
Your friend obviously did not do their homework properly. Stalls in malls have always been way more expensive than shops.

By Anonymous, at December 12, 2008 at 8:14 PM
Hey.. If businesses are willing to pay that much and still secure enough profit.. then be it..

If they aren't able to rent the stands at these prices, they would definitely lower the rates, but obviously it's working well with them..

this is how free market works..

By AyMoNy, at December 14, 2008 at 4:51 PM
tobasco, that’s what i thought as well

Dubai Guy, I honestly don't wanna know ...

WoD - I know .. I know a few people who work for businesses in MoE. Many of them have complained about a serious drop in footfall in November - many are attributing it to Dubai Mall opening. Next, there will be Marina mall, then Mall of Arabia and many others...

D - that’s what the guy said ..

Anon - setting your judgments aside, your assumption is not the case everywhere. shop vs. stand sqf cost comparisons vary depending on mall operator, location, number of people manning the stall, services rendered..etc. But that is not the point. MoE’s rates way exceeds the market rate a stall the mall. For example, Ibn Batouta currently charges between Dhs 200 to 240K per year. Most other mall charge around the same number. The question i am raising here is: Fine, but till when can they sustain this?

Aymony .. haven’t seen u here in a while. Welcome back..

By moryarti, at December 15, 2008 at 12:55 AM
ummm..where is the MoE? Don't think I've been there yet? DXB City center and Bur Juman are as far as I go...the traffic makes me turn around and drive back to SHJ :)

By rosh, at December 21, 2008 at 9:06 PM
Ah .. it seems you haven't been here for a while .. give me a buzz when ur intown and i'll be happy to show u around ;)

By moryarti, at December 22, 2008 at 7:54 PM