A new analysis by Dubai Chamber of Commerce says, the UAE apparel retail sector is expected to see stronger performance over the 2019-2023 period. Clothing sales in the region grew by an annual rate of 4.8 per cent to $12.3 billion in 2018.
The analysis, based on recent data from Euromonitor International identified menswear as the top-performing category with the segment accounting for $6.2 billion worth of sales last year (53 per cent), followed by womenswear with 34 per cent and children’s apparel (7 per cent). UAE’s apparel sales is expected to improve over the next five years as economic conditions become more favorable and consumer confidence strengthens.
Menswear is expected to register a compound annual growth rate (CAGR) of about 3.8 percent between 2019 and 2023 to reach $7.8 billion in 2023 while womenswear is expected to see a CAGR of 4.9 percent in sales over the same period to reach $5.2 billion in 2023, largely driven by stable footfall and an increasing in spend on modest fashion. Meanwhile, children’s apparel sales are projected to register a CAGR of 3.7 percent over the 2019-2023 period to reach $1 billion by 2023.