Ramadan is a month of spirituality and worship, but it is also a month of celebrations and festivities in which people’s spirits are high ... along with their spending power.
People have already started checking off their list of needs for Ramadan and are well under way with Eid preparations (the celebration that marks the end of the fasting month).
But just how much one is willing to spend on these preparations depends mainly on family tradition.Ramadan is a month that witnesses an increase in consumerism. People tend to spend on things such as clothing, food items, decorations and gifts for loved ones.
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Driving around the streets in Ramadan, you will notice buildings and homes decorated with Ramadan banners and lit up with colorful lights. Stores prepare window displays with traditional prints and posters that signify the month (such as the crescent moon). Pop-up stalls can be seen along the streets in some areas selling all sorts of lights and decorations.
Ramadan is known for good deeds and generosity. It is also the month when families get together, usually for iftar or sahoor, so you see this generosity laid out at the table. Some people even buy food items in bulk to be distributed for charity purposes.
Therefore supermarkets, mini markets, and food specialty stores are beneficiaries of the sales increase. Abdul Majeed Alghamdi, manager at one of the large supermarket chains in Jeddah, mentioned that sales increase by more than 40 percent during the month. “People focus on certain food items that are frequently associated with Ramadan such as oils, oats, rice and pasta. Therefore there are always offers on these items to attract consumers.”
He added that suppliers of these food items book the location of the product placement within the supermarket about a month in advance. He also mentioned that to deal with the large volume of consumers, they tend to hire extra staff (depending on the location and size of the supermarket) to help out during the month.
Clothing items are also bought in abundance around the holy month. Women traditionally wear kaftans during Ramadan; fancier ones can be worn for Eid. Boutiques that specialize in kaftans are high in demand during this time. Kaftans can be found at bazaars throughout the month that range in price.
Many international brands have recently picked up on this demand and started producing traditional-styled clothing. Children’s clothing and accessories are also bought during this time to celebrate Eid in new outfits. Fouz Al-Zahrani, a single mother who works as a security guard at a women’s college, said: “During the month of Ramadan my spending doubles. We typically spend on clothing and food for our family of six.”
Men also prepare for Ramadan and Eid by purchasing “thoubs.” Yosuf Emad, a sales representative at a “thoub” store in Jeddah, said: “We look forward to this time of year as sales during the month of Ramadan increase about 35 percent. Most of our customers come here to buy new ‘thoubs’ for Eid and some even tailor thoubs to last them for the year.”
So whether you are a big spender or not, it is clear that Ramadan is the month when spending is high, providing an economic boost for retailers and improving the business environment.
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