30% loss of sales in retail sector due to rain
25 Nov 2017
Saudi Gazette report
JEDDAH — Sales in commercial stores in Jeddah declined by 30 percent in the aftermath of Tuesday›s rain.
Many shops had to be closed after rainwater inundated storefronts and in some cases damaged stocks.
The losses and the decline in sales also affected fuel stations as a result of rainwater mixing with gasoline. The Ministry of Commerce closed down at least five pumps due to contamination of fuel following the rain, Al-Madina newspaper reported.
A number of shops, real estate offices and car workshops remained shut as customers were unable to reach them because the flooded streets. Many distributors and suppliers also stopped work. Car repair shops received about 1,000 vehicles damaged due to rain.
The head of the Commercial Centers Committee at the Jeddah Chamber of Commerce and Industry, Mohammed Alawi, estimated the loss to the retail sector due to the rain at SR5 million.
He pointed out that Jeddah has more than 5,000 shops and commercial outlets.
Awad Abdullah, an investor in the retail sector, said: “The distributors pulled their vehicles from the streets as a result of the rain. Many trucks that left Jeddah carrying stocks to neighboring areas were either stuck and broke down due to floodwater.”
Economic expert Farooq Al-Khatib said the commercial sector in Jeddah was affected every time it rained, negatively impacting financial returns of traders and investors. Mohammed Al-Shamrani, an investor, pointed out that only a percentage of fuel stations have sufficient protection to prevent water from entering into their tanks, while most stations inside the neighborhoods and on highways lack such safety means. This was revealed by field teams from the Ministry of Commerce that visited the sites following the rain.
Spokesman for the Ministry of Commerce and Investment Abdul Rahman Al-Hussein, said the field control teams examined gas stations in Jeddah to ensure that water did not seep into fuel tanks. He said the teams closed down a number of gas stations and compelled their owners to repair cars that were damaged after refilling contaminated fuel.