Markets and foodstuff stores in the Eastern Province have started promotional and special offers since the beginning of the month, preceding Ramadan. Retail centers were overcrowded because of the 30–70 percent sale. Car companies too entered the race by advertizing their special offers on the roadsides in the province.
Fadel Al Boenein, an economist, said the markets’ early preparations for Ramadan are responsible for creating a fierce competition between stores. Stores like to get an early start to have a share in sales in Ramadan. He said it is important that consumers don’t get dragged into these promotions; they should choose and buy only what they need.
He said stores want to achieve high profits through these promotions. They wish to increase the volume of sales by advertizing incorrect offers. They exploit the season to dispose of stocked goods, approaching expiry dates. Promotions are usually incorrect because prices often increase in Ramadan.
“Car companies always look for opportunities to make special offers, because of the high profit margins. Their marketing ability has become much weaker because of the consumers financial solvency. They make special offers during Ramadan, Haj, in the summer and all year round because they want to increase their sales, even if this means losing on high profits,” he said.
He said consumers’ financial solvency doesn’t change but it becomes weaker during certain seasons, especially since four seasons come within the span of three months; there is Ramadan, Eid Al Fitr, back to school and Eid Al Adha, which strains the family’s budgets.
About the role of the Ministry of Trade in checking the credibility of these offers and supervising markets, he said the ministry can’t cover markets all over the Kingdom. “Consumers should monitor the markets, distinguish between prices in different stores and choose goods that suit them,” he added.
He stressed that consumers should make a list of priorities when making purchases during these seasons. Early purchase is much better from a financial point of view, because stores often raise the price of goods during these seasons and not vice versa.
Malls, car companies launch Ramadan campaign
