The retail sector in the Kingdom is one of the biggest sectors in the Gulf region, with many shops receiving their customers after 9 p.m.

The proposed 9 p.m. shop closure time, which is expected to be approved by Cabinet, has created fears among retail shop owners who say they may face low sales. They claim that customers in the Kingdom cannot make shopping in the morning or afternoon due to high temperatures, especially in summer.

Minister of Labor Adel Fakeih said Sunday that he expected a Cabinet decision soon on the issue of 9 p.m. closure of shops. “The experts commission of the Council of Ministers is giving the new regulation the final touches to get it endorsed by the Cabinet,” he said.

According to the new proposal, retail shops should open their doors from 6 a.m. to 9 p.m. — the hours when many Saudis and expatriates are at their workplaces. Moreover, high temperatures during summer will prevent many families to visit shops located outside malls, especially in Balad, Jeddah’s downtown.

The retail sector in the Kingdom is one of the biggest sectors in the Gulf region, with many shops receiving their customers after

9 p.m. However, local malls have become successful in the Kingdom due to high family turnouts who prefer to spend their week-ends there.

“This decision will surely cause huge losses to retail shops, especially in the initial stages of implementing the new regulation. Customers will have to get used to new changes by finding time for shopping,” Fadal Abu Al-Ainain, an economic adviser of some private companies, told Arab News.

“Malls will be among the biggest losers as a result of the new 9 p.m. closure regulation. This will have a spiraling effect on malls who will be forced to reduce retail shop rentals. This, of course will lead to reduction of prices in general,” he added.

Retail companies have several options to deal with in the changed working hours. One of the options is to close some branches and reduce operation costs. However, there are some stores which have no branches. Small shops will be a big loser in the changed closure time.

“Retail shops will look for other solutions to minimize negative impacts of the new closure time. At the same time, most retail stores would not lose their customers. Therefore, it is expected that new marketing techniques will be used by retailers to attract customers, Adel Kareem, marketing manager at a retail company, told Arab News.

“Some companies may close some of their branches or reduce their prices to have more customers. However, one thing is clear: Saudi and expatriate customers will be forced to find their shopping time during the prescribed hours,” he added.

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