How to prepare your store for Ramadan 2024

Why is Ramadan so important for retailers?

Huge demand for shopping

Regarding sales, Ramadan is the most significant time of the year. Our data shows a 32% uplift in sales compared to the other months.

Change in shopper behaviour

Ramadan is more than a sales season. It is a complete shift in behaviour for nearly the entire population. As working hours and schedules change, so does how people shop and consume entertainment. There is a much larger focus on community, with brands and advertising not being at the top of shopper's minds. This makes it more difficult for brands to get cut through but also presents a huge opportunity to brands that get it right as the demand for entertainment and storytelling increases¹.

This behaviour change also presents the opportunity to convert more first-time sales. 56% of people who celebrated Ramadan in Saudia Arabia and 65% in the UAE say they expect to spend more during the holy month¹. The change of routine and more time spent with family and friends listening to their recommendations allows you to get more customers to try your products ².

Shoppers expect value

Ramadan is a time to get together, but with that comes increased spending. Whether treating the family to special gifts or spending extra on food for hosting Iftar followed by Suhoor, 80% of surveyed Saudi Arabian consumers believe shopping is an important part of the festive period ⁴. The difference between Ramadan and other times of increased spending is that retailers are expected to offer special deals and Ramadan editions to join the celebrations. 81% of regional shoppers are excited about brands’ special Ramadan editions and deals ⁴.

This does not necessarily mean shoppers are looking for price discounts, many shoppers look for more ethically, sustainably and locally produced items during Ramadan ³. Charitable giving and the community are a large part of the blessed month. Shoppers are willing to spend more if they see their money going into something positive. A growing theme in the region that we predict Ramadan will only encourage ⁵.

Your Ramadan retail strategy

You need to complete two goals to maximise your sales throughout the period.

1. Continue to provide the best shopping experience despite the change of routine during Ramadan.
2. Increase sales with some tactical changes to your marketing.

PART 1: Change of Routine

Adapt to the change in shopping behaviour to continue to provide the best possible shopping experience during the blessed month.

Hours

The obvious major change in your traffic will be due to Iftar, with a skew towards much later peak hours. You can see from the comparison below between Ramadan and an average week for the rest of the year.

A few things to consider are making sure that your customer support is adjusted accordingly and looking at the impact of any of your marketing campaigns. Schedule posts on social media to go out later and check if your digital ads are running at the updated peak times.

Stock management

Demand planning

Before any sales season, the first thing to do is to check your previous year's data to understand the demand levels for your products. Break it down by product, category, and location to understand if there are any significant Ramadan trends you need to consider.

It’s also worth considering what products you sell will be popular during Ramadan. Gifting is a big part of the holy month, so if you sell gift sets or products that are popular presents, make sure you have more stock than usual.

Your projections may look strong enough to warrant taking on board extra staff or hiring extra warehouse space. If that’s the case, plan and consider that in your budget.

Reverse logistics

As with any period of increased sales volume, you will get an increased level of reverse logistics, that’s returns coming back in. Make sure your staff and procedures are equipped for that eventuality.

Delivery

Retail businesses need to plan their delivery strategies carefully during Ramadan. Due to the altered shopping habits and increased demand, delivery times will be affected.

Communicate with customers about potential delivery delays and offer flexible options wherever possible. This is another reason to make sure your customer support is available during the busy season, as it’s almost certain that there will be an increased amount of customer support traffic.

The worst thing to do is to make promises you can’t keep. Use your demand planning analysis from previous years to give you an understanding of volume. Talk to your delivery partners, and remember all other brands are in the same position as you.

PART 2: Capitalise for your brand

It’s hard to think of a period anywhere in the world that so dramatically changes a collective consumer’s behaviour. As we explored above, not only the amount of spending but how they interact with brands undergoes a big shift.

Brands in the region typically spend a third of their year's marketing budget on Ramadan, so it’s essential to get right to set up success for the rest of the year ⁷.

Brands that go dark during Ramadan could suffer a 39% reduction in total brand awareness ¹

The space available to get your message across increases, but so does the audience's expectations to have community-driven content. Also, don’t neglect the increased importance of word of mouth during Ramadan. Ensure your brand is a positive conversation source by ensuring your customer buying experience is perfect.

Another key change due to Ramadan is the spending audience tends to skew slightly older. This implies a higher average order value, increasing revenue ². This is mostly due to the older generation hosting Iftars and being more traditional.

Different industries are affected in different ways. Fashion and grocery are the most positively affected during Ramadan. Electronics spending is much more focused on Black Friday and Cyber Monday.

Ramadan is all about community, gifting and being with friends and family. Hence the increase in fashion and food.

Timing

When is the right time for your marketing push?
There are two distinct spikes during Ramadan: pre-Ramadan week and pre-Eid week. Pre-Ramadan week is dominated by the grocery, home and fitness sectors as families stock up and prepare for a month of change. Then, pre-Eid week is when fashion and beauty take over as celebrations ramp up.

Don’t panic if sales decrease in the first week. A well-thought-out strategy will more than makeup for it in the second wave. It’s also worth noting that Ramadan is the time for fashion and beauty to shine. While there is still an increase, electronic sales tend not to be as strong as the increase from Black Friday.

There will also be implications of a winter Ramadan in 2024. Iftar will be earlier, and the weather will be cooler, allowing for more time for shoppers to get out and about. Predictions are for a strong year for in-store retailers in 2024.

Offer value

As mentioned above, Ramadan is perceived by shoppers as a time of great value. But how do you convert that sentiment into positive sales for your brand?

There are a few tactical strategies you can use to get this to play into your hands.

1. Bulk deals are hugely popular.

   Due to the community nature of the holy month, shoppers often plan for a few weeks. So shoppers find increased value in offers such as buy one get one free.
   
2. Take advantage of the increased demand to attract new customers.

   Increase your first-time buyers with tactical offers to new customers. There is no better time in the year to get shoppers to try your product.


   
3. Shoppers value convenience.

   Price-led discounts are not the only way shoppers find value in Ramadan. Due to the hectic social schedule, quick free delivery is highly sought after.

Messaging

During the holy month, worshippers look for brands to enhance their spiritual experience of Ramadan rather than disrupt it. Brands must authentically connect with their customers during this period, using the right tone and message of community and charity.

Here are some examples and advice when executing campaigns during Ramadan.

1. Dettol and Noon share blessings with delivery heroes

   
2. How KitKat created a chocolate to break your Ramadan fast.

   
3. Ramadan content tips from TikTok

Sources:

¹ Think with Google - 4 consumer shifts from the most digital Ramadan of all time — and what they mean for 2021. Georges Odeimi, Ahmed Safwat. January 2021 

² Redseer Middle East - Unwrapping Ramadan 2022

³ Ramadan 2024: 3 easy-to-action marketing tips to help your ads stand out. Lynn Mazloum. December 2023

⁴ 2024 Ramadan & Eid al-Fitr Insights. Toluna Matrix Lab. 2024.

⁵ 20% of Saudi consumers ready to pay more for local products: PwC Middle East. 2024 

⁶ Ramadan: a new frontier – by Mindshare’s Keram Mazouzi. 2023