Retail Giants Exit Middle East Market

River Island and Debenhams Bid Farewell to the Middle East – What Does This Mean for Shoppers and the Retail Sector in the UAE?

Dubai, one of the Middle East's most renowned shopping paradises, faces a significant change regarding the presence of international fashion brands. Two British-rooted department store chains, River Island and Debenhams, are permanently closing their doors in the United Arab Emirates – marking not just the closure of stores, but the end of an era.

Withdrawal of British Brands

River Island, a flagship of British street fashion for decades, closed 33 stores in the United Kingdom in 2025 and is now starting its withdrawal from the Middle East. The closure of units operating in the UAE, Kuwait, and Qatar has been announced, accompanied by massive discounts of up to 75% as a final attempt to draw loyal customers.

Several factors are behind this decision. According to the British press, River Island faced rising operational costs and a shift in shopping habits toward the online sphere, leading to significant loss of revenue. The company is closing a substantial portion of its physical stores as part of a court-approved restructuring plan.

Debenhams faced a similar fate, having closed its physical stores in the United Kingdom as early as 2021, and has since kept the brand alive only through its stores in the Middle East. In the UAE, Debenhams was present in three major locations – the Dubai Mall, Mirdiff City Centre, and Mall of the Emirates – but now only the latter remains temporarily operational, as the others have already closed.

The Economic Reality Behind the Downsizing

Both British brands were operated under license by the Kuwait-based Alshaya Group. This company represents many other globally known brands in the Middle East, so these closures are not isolated cases. Pottery Barn and West Elm have met similar fates, also leaving Dubai and Abu Dhabi shopping streets.

The transformation of the retail sector is not a new phenomenon. After the pandemic, the shift towards online shopping accelerated even more, a trend felt in the Emirates as well. Once iconic, physically-present store networks are struggling to keep pace with online fashion platforms, especially as associated rental fees, logistical challenges, and human resource costs continue to rise.

The Dubai Mall, Mall of the Emirates, and other premium shopping locations have attracted shoppers from around the world for decades. The closure of such stores is therefore not just about a brand – it's also about how the retail sector tries to adapt to changing consumer expectations.

How Do Shoppers Feel?

For shoppers, the closure of these stores can also mean an emotional loss. Both River Island and Debenhams are iconic brands representing not just fashion but a lifestyle as well. Local shoppers – especially those who favored British style – will increasingly need to look elsewhere, whether it be online shopping or discovering other local boutiques and brands.

Many remember nostalgically the department store model of Debenhams, where men's, women's, children's clothing, shoes, home goods, and cosmetics were available under one roof. Such shopping experiences are becoming rarer – not just in the UAE, but worldwide.

What Will Take Their Place?

This question concerns many, especially regarding the Dubai Mall and the Mall of the Emirates, where every square meter is worth gold. It's likely that new, more digitally-focused, modern concept stores or global brands will occupy the vacated spaces. It’s not impossible that technology-oriented showrooms, sustainable fashion brands, or even experience-based pop-up stores might be given a chance.

The Future of Retail in the UAE

Dubai remains one of the world's most attractive commercial centers. The shopping fever, tax-free status, concentration of luxury brands, and tourism are all factors ensuring that the retail sector won’t lose its significance. However, the focus increasingly shifts towards omnichannel solutions, digital experiences, and sustainable business models.

Physical stores will not disappear entirely – but those players who cannot adapt to the rapidly changing environment will quickly be left behind. River Island and Debenhams serve as a warning sign to other still-operating store chains that the time for old models is over.

Closing Thoughts

The withdrawal of River Island and Debenhams from the United Arab Emirates is not just a financial move, but also the closing of an era. For local shoppers, it is a farewell to a well-known brand, and for the market, a warning that adaptation, innovation, and customer experience are the keys to the future.

After the brands' departure, new opportunities may open up for other players – but only those will succeed in the long run who understand and meet the needs of modern consumers while preserving Dubai’s shopping-based identity.

(Source of the article based on River Island's announcement.)