(MENAFN- The Peninsula) lalin fernandopulle |
Doha: The small and medium sector businesses in the retail sector of Qatar is hoping to see more sunshine on them from the FIFA World Cup 2022 which is expected to have trickle down benefits on the economy which is on a solid growth path.
The small scale retailers are anticipating better times with sales volumes rising following the visits of World Cup fans and holiday makers to Qatar in the coming days and weeks.
Currently sales at most retail and grocery outlets across malls in Doha are at where it was prior to the start of the sporting fiesta last week.
Sales have not yet picked up as expected but it would be better in the coming days and weeks, said an upbeat retailer at the Doha Mall yesterday banking on the global sporting event for an uptick in sales.
Most retailer store operators said currently sales have been around 50-60 percent which is way below expectations during the World Cup. It's only the start of the season which will bring glad tidings for all business in Qatar.
According to reports new store openings, acquisitions and e-commerce drive would boost Qatar's retail industry. A vibrant M&A activity combined with the expansion of distribution channels will benefit the companies operating in the Qatar retail markets.
On the other hand, growing consumer awareness, increasing competition, costs involved in the deployment of advanced technologies such as Artificial Intelligence and emerging non-traditional resellers are expected to challenge the market growth.
The retail market in Qatar is a vital cog in the country's economy which is to traverse a path of diversification under the 2030 Vision of the State.
According a forecast by Fitch Solutions the GDP could increase to 4.6 percent in the fourth quarter this year.
The state pays considerable attention on the diversification of the economy to transform the country into a sustainably developed knowledge economy.
Qatar's Economy is one of the region's strongest economies and one of the world's most promising economies. Qatar maintained balanced growth rates despite global challenges, with Qatar's GDP having expanded by over 12% in the third quarter of 2021 compared to the second quarter of the same year. Retail companies across Qatar focus on improving economies of scale, boosting operational efficiency and diversifying revenue through e-commerce channels.
According to the Oxford Business Group Qatar's retail sector fared well in 2020 and 2021 despite the global slowdown. Although shopping outlets were forced to close in the spring of 2020 when governments around the world imposed lockdown measures to stem the spread of Covid-19, reopening began as early as that summer. In the months since, retail stores and malls in Qatar have welcomed customers with a range of health guidelines in place.
A handful of new malls opened in 2021 and more are expected for 2022, encouraged by pent-up demand for goods and socialising, even as median monthly rents have fallen.
Grocery retailers, in particular, were buoyed during the pandemic by online deliveries and minimal disruption to supply due to Qatar's pre-pandemic drive to boost food security and diversify trading partners.
Qatar's iconic locations have been a boon for the retail business in the country which is expected to thrive on the growing travel and leisure industry in the country.