Speaking to Gulf Times, one of the managers of a leading supermarket in the country said few people are buying gadgets, garments, toys and appliances, among others at their department store.
He admitted that sales on these items dropped between 50 and 75% since September compared with the same period in 2014.
While citing the effects of plunging oil prices, the manager believes the increasing number of players in the market had “further reduced their share of the pie.”
“Due to high exchange rates of most Asian currencies, large expatriate populations in Qatar such as Indians, Filipinos and Nepalis also preferred sending more money to their families back home.”
Filipinos usually send a significant amount of remittances to the Philippines in December due to some major festivities celebrated by many Filipinos.
The same month is also a time when a large number of Filipinos in various parts of the world particularly in the Middle East fly back home to join their families, which entail huge spending.
For food items, groceries and other basic needs, the manager said these commodities have not been affected by the economic slowdown and other factors except the rising competition in the Qatar market.
Another manager of the supermarket who was assigned in another branch outside Doha echoed the statement of his colleague noting “a slight decline” in the demand for non-food items.
Comparing their sales with other branches, he said the demand for such commodities in other locations maybe different than those with a large number of occupants such as Doha.
“But I have to admit that most of the branches were not able to meet their targets last year,” he stressed. “We also have to consider other things like the post-Eid season which is really dry for us.”
Besides supermarkets, other business establishments, stores and shops in major malls in Doha also complained of drop in sales.
Many of these businesses were prompted to offer various promotions, special discounts, and cash backs just to increase their sales.
A supervisor of a high-end furniture shop said they now offer 10% to 20% discount even on their new collections. Some items are on 30% to 50% discount. “We hardly used to give such offers in the past,” she added.