Mainstream retailers on British high streets miss out on the power of the Muslim pound
With buying power of up to £30 billion (Dh142.76bn) a year, British Muslims represent a huge consumer market – but one that many mainstream retailers are failing to tap into.
On Edgware Road, London’s “Little Arabia”, the pavements are bustling with customers keen to buy clothes, fabric, jewellery and snacks in time for Eid Al Adha.
The many local independent and family-owned stores are well prepared for a surge in business at this time of year, while the Lebanese restaurants and shisha bars are even livelier than usual. Most outlets are open late, some around the clock.
But a short walk away in Oxford Street, Britain’s bestknown shopping street, it is a very different picture with few visible signs that the UK’s largest retailers are making any effort to market Eid.
While supermarket chains such as Tesco rolled out a range of special spreads in the lead-up to Ramadan and Eid Al Fitr this year, there has been much less promotion this time around.
According to a report in 2014 from the Muslim Council of Britain, the Muslim market is worth £20.5bn a year to retailers in the UK.
But Mohammed Shafiq, the chief executive of the Ramadhan Foundation, believes that amount is much higher.
“It certainly would have gone up to at least £30bn,” Mr Shafiq said. “There is huge potential there for investors.
“That is the really important thing to remember. You’re not doing the Muslim community a favour by having dedicated clothes lines and so on. You’re
helping your business to grow.”
Mr Shafiq said British retailers had woken up to the opportunity in recent years but there was a lot more that could be done.
“Five or six years ago, we started seeing some of the supermarkets in Muslim and Asian areas lay out a small selection of Ramadan-related and Eid-related goods and materials. But that’s about it.”
The level of marketing is clearly far less than for other festivals, such as Christmas, Easter and Halloween, which are major events in the British retail calendar.
“The retail market spends billions on Halloween, bonfire night and special occasions like that. What’s wrong with spending some money on Ramadan, Eid, and Hindu and Jewish festivals as well?” Mr Shafiq said.
One British company that is actively courting the Muslim pound is Hotel Chocolat. The upmarket confectionery chain advertised a range of Eid products on its website, including hampers of chocolates with no alcohol or gelatin. Many Muslims avoid eating gelatin as it can contain processed pork.
“We have really showcased it in the shops,” said Angus Thirlwell, the chief executive. Muslim customers “loved how we are participating in this event”.
Mr Shafiq said H&M was the only retailer that put up any sort of festive Muslim posters, usually at the end of Ramadan. He said anti-Muslim sentiment was a major reason leading British brands shied away from promoting Islamic festivals.
“There is a real fear among retailers that because of the rampant Islamophobia in our society, their brand will be damaged if they somehow support Muslims to come and shop there,” he said. “I think that definitely plays a big part.”
He said that when supermarkets started rolling out halal foods several years ago, it provoked an outcry from sections of the British public, particularly on the far-right but also in some of the mainstream media.
“There was a fear that ‘Muslims are taking over our supermarkets’,” Mr Shafiq said. “Even then, that sort of mentality has not gone away.”
Najah Jawed, who works at Nawras chocolate and dates shop on Edgware Road, said that mainstream retailers were missing an opportunity.
“We do some extra merchandising and marketing around Eid,” Ms Jawed said. “Mostly we advertise online and that works well with our customers.
“Larger shops that you’d find on the high street don’t really seem to do anything for Eid. Maybe they are missing out on part of the market but Eid is a good time of year for our sales.”
The British fashion brand Aab, which sells a range of modest clothing online and in various department stores, also looks forward to this time of the year. It puts out a special Eid collection every year, a month before the festival.
“We definitely see a spike in sales during Ramadan and Eid, and then the second Eid as well,” said Altaf Alim, Aab’s commercial director.
Mr Alim said mainstream department stores such as Debenhams, which stocked Aab’s lines, did recognise the value of the Muslim pound, but more could be done.
“There is definitely awareness and an impetus now for many mainstream brands and retailers to tap into this market,” he said.
“A lot of stores do promote the first Eid but less so the second one. They are missing a trick there. Perhaps it’s a case of more education needed so that they understand the different festivals.”
The argument is even more compelling given the British high street is facing tough times with economic uncertainty and rising inflation.
“Retailers should be grabbing an opportunity like this with both hands – particularly in a difficult market like this,” Mr Shafiq said.
“The Muslim pound is a huge resource and incredibly lucrative if you get it right.”