DAMMAM, 21 October 2003 — Businesses are gearing up to meet consumer demand during Ramadan, which starts on Sunday or Monday, amid complaints that some are taking advantage of the shopping season to put up their prices.
Ramadan means big business for traders, and according to an estimate the total turnover of the Eastern Province market during Ramadan last year was nearly SR1.3 billion. Projections for this year are that it could reach SR1.8 billion.
Fast-moving consumer goods have the largest share of the market, amounting to almost 40 percent, followed by garments, textiles, electronic goods, furniture and jewelry.
But for the last few years, sales have been comparatively slow during Ramadan, with retailers complaining that they fell below their expectations.
But now that an increasing oil price and higher turnover of petrochemicals in the international market have infused new life into the market in the region, retailers and manufacturers hope that this trend will reflect on Ramadan consumption.
Dairy and beverages are among the most consumed goods. The cutthroat competition in both industries has reduced profit margins for producers — to the advantage of consumers, who pay less.
Most supermarkets in Dammam and Alkhobar, as well as shopping malls, electronic shops, jewelers and furniture shops will be offering special promotions to grab what business they can. Hoardings and billboards promising special Ramadan offers and discounts are going to be everywhere.
So will be prize-draws offering prizes worth millions of riyals to the lucky winners.
Saudi households traditionally buy new furniture for Ramadan, and furniture retailers have high hopes for the month.
“The trend is already evident,” said one retailer. “We have been seeing increased sales since last week, and we could see they were essentially Ramadan purchases.”
Similar optimism is felt in the gold and jewelry industry.
Yet amid the special offers and promotions, there have been complaints from consumers that some businesses actually put their prices up, according to a report in Al-Madinah newspaper. A number of popular products, they say, are sold at a premium, and some consumers have been asking the Ministry of Commerce to make sure this does not happen this year.
“There should be a price control,” Abdul Rahman Al-Johani told the paper. “With the approach of Ramadan, many people are buying huge quantities of food products, and retailers know it. There is no supervision from the municipality and Ministry of Commerce officials.”
But a Ministry of Commerce official in Jeddah was quoted as saying that the ministry did try to ensure that prices are not needlessly put up. “We went out and urged merchants not to take advantage of the month and increase the prices of popular Ramadan products,” he said. “And we do plan to monitor the market and send out teams of inspectors who will report back.”
