Dubai: Black Friday, the traditional start of the Western holiday season, kicks off on Friday, but don’t expect the shopping craze to be in full force in the UAE.

Black Friday, which is the day after Thanksgiving in the US (November 27), is the busiest shopping day of the year, with retailers offering huge discounts to kick off the Christmas sales season.

Black Friday sales in the US are an indicator of the strength of the retail sector, which is an important driver of the country’s economy. The National Retail Federation, an industry trade group, forecasts sales in November and December to grow 3.7 per cent to $630 billion, down from a 4.1 per cent increase last year.

While primarily an American event, Black Friday is generally recognised around the world; however, the shopping event is relatively new and not well established in the UAE, says Diana Jarmalaite, research analyst at consultancy Euromonitor International.

“Compared to the US, the shopping craze in the UAE [during Black Friday] is much more moderate,” she said by phone.

There are also a number of competing events in the UAE, which retailers are more focused on, such as the Dubai Shopping Festival (DSF), which is a much bigger shopping event. DSF runs from January 1 to February 1.

Echoing Jarmalaite’s views, Colin Beaton, managing director at retail consultancy Limelight Creative Services, also said that DSF will grab most of retailers’ attention.

“[Black Friday is] a small event, particularly because DSF starts in five weeks. So most retailers will keep their marketing and promotions budget focused on that event,” he said.

However, online retailers are still trying to push the concept in the UAE.

Ronaldo Mouchawar, chief executive and co-founder of Souq.com, said in an email that the company has more than doubled its advertising budget for Black Friday compared to last year, but did not say how much.

“We are predicting smartphones to be the number one category in sales value, but in the number of items, fashion, health and beauty are expected to lead,” Mouchawar said.

At Plug Ins, the company will be offering Black Friday discounts of up to 60 per cent on a variety of products including phones, laptops, computers, televisions and home appliances, said Omar Abushaban, its general manager.

Many retailers are offering deals and discounts days before Friday to capture demand.

This is also a trend in the US, with some retailers promoting deals weeks in advance. Retailers including Amazon, Target and Best Buy are offering their deals before Friday.

The subdued demand in the UAE retail market during the holiday season isn’t just due to lack of awareness. Factors currently affecting the retail sector, including lower consumer confidence and a drop in spending by European and Russian tourists, will result in softer sales.

Aramex, a local shipping company that operates internationally, expects shipments to the UAE to spike from Black Friday, according to Iyad Kamal, its chief operating officer.

However, he declined to say how much shipments will grow. Aramex does offer Shop and Ship, which allows consumers to buy from overseas.

“There is good growth for not only domestic or regional eCommerce players but also global e-tailers tapping into the UAE market as an important destination to sell their services to,” he said by email.

“The UAE’s online shopping appetite in 2015 has grown faster than other countries in the region, due to its diverse professional population base, advanced technology infrastructure and high credit card penetration,” he added.

Aramex will ramp up its customer service, after sales support and weekend deliveries, given the anticipated higher demand, according to Kamal.

 

What does Black Friday mean?

There are two competing reasons for why the shopping day is called Black Friday.

The first is that police and retail workers hate the day after Thanksgiving, due to the sheer number of people who go to shop at the malls. No one wants to work on “Black Friday.”

The second is that it is the day when retailers begin to show a profit for the year, moving from being “in the red” to “in the black”.