Slow Dubai mall sales threaten luxury shopping recovery

Faltering sales in Dubai are threatening a much-needed recovery for the luxury retail market, just as LVMH, Kering and Hermès prepare to report earnings.

Revenues at Mall of the Emirates were down 30-50% for some brands in March compared to the same period last year, while footfall declines across flagship retail hubs, including a steeper slump at Dubai Mall, point to a broader pullback in discretionary spending among tourists and residents alike.

Even relatively resilient locations such as The Galleria Al Maryah Island in Abu Dhabi recorded weaker sales, suggesting the downturn is spreading beyond Dubai’s tourism-dependent economy.

The figures cast doubt on the Middle East’s role as a rare growth engine for luxury brands, as geopolitical tensions threaten to delay an already fragile global recovery in the sector, Reuters reports.