Diwali in UAE: Gold retailers report brisk sales for Dhanteras

After a year of austere celebrations caused by the pandemic, gold sales in UAE picked up momentum on the occasion of Dhanteras, retailers told Khaleej Times.

Major gold and diamond jewellery retailers in the country said their outlets saw a considerable increase in footfalls on Tuesday night and Wednesday morning.

Dhanteras is the first day that marks the festival of Diwali in India. The Festival of Lights will be celebrated on Thursday, November 4. Dubai is hosting an epic firework display to mark the occasion, and special celebrations have been planned at the India pavilion in Dubai Expo 2020.

“With the ease of restrictions and tourists returning, we are seeing a considerable increase in footfall across all our stores and expect a significant transformation in the market in the coming weeks as well,” said Shamlal Ahamed, the managing director of international operations, Malabar Gold and Diamonds.

“The overall consumer sentiment is about celebrating important festivals with family and friends as well as being part of events like weddings and related celebrations, that have become more frequent in the UAE,” said Ahamed.

Higher in-store footfalls reported

Meanwhile, John Paul Alukkas, the managing director of Joyalukkas Jewellery, International Operations, said, “The pandemic showed us how important an investment could prove to be in challenging times. People are now more aware that gold is an evergreen investment option. Customers are showing a keen interest in accumulating gold on a periodic basis as opposed to bulk buying limited to festive seasons.”

“However, Diwali and Dhanteras being an auspicious occasion, we are seeing good footfalls and have received satisfactory advance bookings,” Alukkas added.

Last year, retailers had launched home delivery services for customers wishing to buy gold. Alukkas explained, “Last year, we innovated by introducing buy at-home services, where customers could view jewellery through video calls, and it was delivered to their homes. Now, people are used to adhering to the safety norms, and customers are now more confident of shopping in the showrooms.”

“During Dhanteras, majority of our customers purchase gold as part of safeguarding their religious beliefs. However, we have attractive instore offers during this period, which lures customers from all communities to purchase gold,” added Ahamed.

Ramesh Kalyanaraman, the executive director of Kalyan Jewellers, said, “Kalyan Jewellers has been witnessing a strong momentum in footfalls and revenue for the past three quarters, starting from the same period during the last financial year (Q3 FY 2020-21). The traction has continued during this festive season, with October registering good sales momentum.”

Kalyanaraman added, “On Dhanteras, we registered higher footfalls both from existing as well as new customers, resulting in robust revenue growth. While the sales momentum in the plain gold segment continued, we also witnessed a significant increase in the studded jewellery category.”

“The Middle East markets have also been vibrant from the start of this festive season and on Dhanteras. We are expecting this trend to continue, thanks to various events like the World Cup and Expo-2020 which are being held in the region.”