The financial crisis seems to have produced its first victim on the luxury market of Dubai. Spanish luxury brand LOEWE, sister company of LOUIS VUITTON is closing its store in Dubai by the end of this month. A smaller Loewe store within the Burjuman Mall closed earlier last year.
PRADA is another brand which has had tough times in Dubai, having already been absent for more than a year after closing its store in Burjuman early 2010. A new store is announced for late this year.
Market sources indicate that Gianfranco Ferre within Dubai Mall and some other brands within Burjuman are likely to close by the end of this year. Apart from the financial crisis and the drop in number of wealthy travellers to Dubai, the commercial retail market has been re-organizing, Dubai Mall and Mall of the Emirates now dominating the market, driving out of business older malls such as Burjuman. The advantage of the two malls are their major attractions, the Acquarium at Dubai Mall and the Ski slope at Mall of the Emirates and the large number of diverse quality dining outlets.
Less than a week from the start of the Dubai Shopping Festival, most of the major luxury brands such as Gucci, Louis Vuitton, Armani and Hermes are sold out with few merchandise left. That is why, most of them introduced gradually the new season. The festival lasts till 20th of February but will be more medium and mass market oriented. Less performing brands: Tom Ford, Valentino, Dolce Gabbana.
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