Mall culture hits Dubai's Computer Street

Retailers on Dubai's Khalid bin Walid Street, popularly known as Computer Street, are feeling the pinch as walk-in customers migrate to swankier retail space in shopping malls.

Businessmen who spoke to Emirates Business confirmed that retail trade reduced by half in 2009 with no signs of improvement this year too. "The mall culture has affected the retailer community on Computer Street. Consumers need a value-add to come visit the showroom. This is similar to groceries in Dubai, which have almost disappeared due to malls," said Mohamed Giado, Managing Director at New Computer Trading.

Many of the retailers are betting on services and expanding their presence across the GCC and some of them in their home countries. Retailers like New Computer Trading are already planning to extend its retail presence outside of the UAE.

Technology companies and distributors have to keep higher budgets for mall owners. "In spite of them spending more on displays, vendors have no control on their product lines in these retail outlets." But retailers like him don't have access to display budgets from vendors.

However, there is a silver lining in the clouds with many of these retailers now switching strategies to target corporate buyers. Shailendra Rughwani, President of Dubai Computer Traders Group and an owner of retail outlet Experts Computer on Khalid bin Walid Street, said: "Power retailers at the malls attract only single unit buyers. Retailers on Computer Street are now targeting corporate customers who buy in bulk. Services is an area which is a major focus for these traders."

"This shift has been happening since 2008 and change was noticed in the decrease of walk-in customers which has now reduced to 50 per cent," said Rughwani.

"Retailers on Computer Street score a point in the area of product knowledge, which is why corporate customers still prefer trading with us. Many of the retailers are also considering expanding their offices in the GCC and also in their home country. As a trade association, we are telling vendors to segregate specialised pricing for the retailers on Computer Street," explained Rughwani.