The Dubai Chamber of Commerce and Industry, which analysed recent data from Euromonitor International says, the outlook for UAE apparel sales is expected to improve over the next five years as economic conditions become more favourable, while consumer confidence strengthen. Despite the dominance of store-based retail, online retail sales are witnessing a strong growth as many well-established brands explore omni-channel retailing, either through third parties, their own digital storefronts, or both.
This trend is expected to put pressure on prices as the industry becomes more competitive with traditional retailers expected to offer more deals to capitalise on consumer demand. Menswear is expected to register a compounded annual growth rate (CAGR) of about 3.8 per cent between 2019 and 2023 to reach $7.8 billion in 2023.
Womenswear is expected to see a CAGR of 4.9 per cent in sales over the same period to reach $5.2 billion in 2023, largely driven by stable footfall and an increasing in spend on modest fashion. Meanwhile, the children’s apparel segment is expected to remain highly competitive, supported by good quality products and affordable prices offered by well-established brands. Sales within this category are projected to register a CAGR of 3.7 per cent over the 2019-2023 period to reach $1 billion by 2023, the analysis found. (DS)
