Riyadh Metro construction causes business slump
The Riyadh Metro has been in the news lately, but not everyone is happy about it.
Local businessmen with shops along Olaya Road are experiencing a dire slump in business, with many saying they have hardly had customers in weeks.
Shop owners along the road have complained that they haven’t made a single riyal throughout October because no one comes to the area, Fares Ali, a salesman at one of the shops, told Arab News on Friday. Demand has fallen 90 percent since traffic was rerouted along Olaya Road because customers can no longer park in front of shops.
The big discounts offered by some shops along the road have still not helped improve lackluster sales performances, added a Syrian salesman at one of the shops.
“Before they reach us, their attention is drawn by other retailers also trying hard to make a sale,” he said.
“In other words, there are too many shops for so few, if any, customers,” he added.
Many of the salesmen expressed apprehension that they might lose their jobs since their employers may just decide to close down “because there’s no return on their investment,” the Syrian shopkeeper said.
Aside from the lack of return on investment, they’re also worried over how to pay salaries and meet operational costs, such as electricity bills, he added. “However, high-end shops don’t seem to be rattled since they employ other sales strategies to charm customers. They put on a friendly appearance or exude warm friendship to impress walk-in customers, including those who are merely windowshopping.”
“They’re not rattled because their employ- ers have deep pockets to meet overhead and operational costs. They think they can ride out the storm,” said a salesman for a high-end shop.
“These high-end shopkeepers know that they already have a niche market for their products because their customers find their items vital for their daily necessities,” he said.