Two of the UAE’s leading jewellery retailers, Joyalukkas and Malabar Gold & Diamonds are affected drastically by the current situation and are shutting outlets to stay afloat to counter the COVID-19 impact on gold demand.
While Joyalukkas, the first jewellery retailer to create a multi-store network in the Gulf, is closing its weak performing outlets, Malabar Gold & Diamonds, with more than 100 outlets in the GCC states, has decided to delay opening all stores until there is clarity on rent reductions from its landlords.
The gold trade has been the worst hit by the virus outbreak, as most residents stopped spending on anything other than essentials, while tourists to have been absent after the suspension of flight services.
The initial plan is for Joyalukkas to exit seven of its 24 stores in the UAE, and repeat the process in the other Gulf States. The UAE contributes the highest share of the retailer’s revenues, at 40 per cent.
Right from the moment COVID-19’s impact on sectors became apparent, retailers have been trying to get their landlords to see reason and offer some sort of rental compensation. Flagship stores in prime locations command rents of Dh800,000 - Dh 1 million.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
