Five ways small retailers are protecting margins as costs rise
Ziad Kanaan
Smaller packs, smarter supplier terms and fewer discounts: what shop owners in the UAE are doing when every cost goes up at once.
Rent, wages, freight and stock prices rarely rise together, but when they do, small retailers feel it first. We asked five shop owners in Dubai and Sharjah what is working.
1. Know your real margin per product
Several owners found that their best-selling items made the least money once delivery and card fees were counted.
2. Renegotiate payment terms
Paying suppliers in 60 days instead of 30 can matter more than a small price cut.
3. Change pack sizes, not just prices
A smaller family pack at a round price often sells better than a big pack with a higher price tag.
4. Discount less often
Fewer, planned promotions around Ramadan, Eid and back to school beat a sale every weekend.
5. Talk to customers
Shoppers accept a price rise better when they hear why, from a sign at the till or a message to loyal customers.