Soaring prices push Egyptians to gift everyday goods this Ramadan

For many Egyptian families, buying gold jewellery for Mother's Day has long been a cherished tradition. However, this year, gold sales have not experienced the usual uptick. Instead, the focus has shifted to appliances and ready-made clothing.

Ramadan, Eid El-Fitr, and Mother’s Day are each a consumer peak season in their own right.

Traditionally, these occasions drive consumer spending, but rising prices — especially gold — have dampened enthusiasm. 

Gold prices surged in the past two days, reflecting broader global uncertainty.

Gold market struggles
 

Nady Naguib, former secretary of the Gold Jewellery Division at the Cairo Chamber of Commerce, explained that the financial strain of Ramadan, combined with the upcoming Eid celebrations, deterred many from buying gold. This prevented any significant recovery in gold sales.

Typically, gold jewellery sales rise by 30-35 percent during this period, but with prices continuing to climb, growth this year is limited to just 20 percent. Currently, sales are fluctuating between 10 and 15 percent, as many consumers prioritize essentials such as Eid clothing and traditional cookies (kahk) over luxury purchases.

Families are closely watching gold prices and hoping for a drop, while some anticipate further increases to capitalize on existing holdings. 

Naguib predicts prices could rise again, particularly given the global political climate and the renewed Israeli airstrikes on Gaza, as gold often reacts to political and economic crises

A surge in appliance sales, the top gift for Mother's Day
 

While gold sales are sluggish, home appliance purchases are booming this Mother's Day. According to George Zakaria, head of the Home Electrical Appliances Division at the Giza Chamber of Commerce, demand has increased by 30-40 percent compared to regular days.

This growth comes after a slow start to 2024, following a significant buying spree in 2023 driven by fears of price hikes.

Appliance prices started to stabilize with the recent Ras El-Hekma investment deal bringing in foreign currency. Refrigerators, for instance, have seen price reductions of up to 40 percent.

Air fryers are the most popular gift, priced between EGP 3,000 and EGP 5,000, followed by ovens at EGP 2,500 to EGP 4,000, and microwaves at EGP 3,000 to EGP 15,000. 

Smaller appliances are available with 10-20 percent discounts, while larger items like refrigerators and stoves see only limited price cuts. 

Blenders are priced between EGP 650 and EGP 2,500, depending on the brand. Dishwashers, however, remain the least popular due to their high costs

Modest clothing
 

Mohamed El-Daour, a member of the Ready-Made Garments Division at the Cairo Chamber of Commerce, noted that clothing sales have shown only a slight increase of 10 percent this year, hindered by weak purchasing power, seasonal weather conditions, and ongoing school terms.

Unlike other sectors, the overlap of Mother's Day and Eid boosted sales of women’s clothing, particularly headscarves and casual outfits. 

El-Daour explained that local production dominates Egypt’s clothing market, accounting for 70 percent of sales. The Egyptian textile industry has shown substantial growth, offering high-quality products at prices nearly 40 percent lower than imported alternatives, making them the preferred choice for many consumers.

Changing consumer priorities
 

Mohamed Mounir, 35, explained that the convergence of Mother’s Day and Eid, in addition to the financial strain of Ramadan and soaring prices, forced many families to rethink their shopping priorities. He decided to reduce his purchases of kahk and biscuits to buy a gift for his mother while prioritizing Eid clothes for his daughter. 

Shaimaa Abdel Aziz, 31, adopted similar strategies. She cut household expenses well before Ramadan early to afford gifts for Mother's Day and Eid clothing for her three children. Abdel Aziz managed her budget by preparing some items at home instead of buying them ready-made and focusing on her children’s essential needs. According to her, careful planning and balance are key to managing finances effectively, helping ease financial pressures without feeling deprived.