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WELCOME NOTE
Circulated in 45 Countries ISSUE 22 | JANUARY – MARCH 2020 MAGAZINE
RETAIL IN 2020 ONTO NEW DISCOVERY
WELCOME
“If you want to be successful, it’s just this simple. Know what you are doing. Love what you are doing. And believe in what you are doing. ” Will Rogers (American author, actor, humorist)
A Path to Success Featuring Eng. Wail M. Balkhair (Retail Professional of the Year) CEO, Sahat Property Management Co.
P.16: Purpose of Brands Beyond 2020 P.46: Marketing Strategies for Retailers P.51: Future of Food is Exciting
Magazine Curated By:
ON THE COVER: Eng. Wail M. Balkhair CEO, Sahat Property Management Co.
Thank you to
Younus Al Mulla MECS+R Chairman
Mazen Hamza Qandeel MECS+R Board President Executive Director Granada Center
MECS+R Board Members
Alessandro Gaffuri CEO & Founder CELS Group
Alfred Abi Antoun Head of Retail KSA & Egypt JLL MENA
Maimunah Shebani Managing Director The Retail Agency
Marcello Larizza, CSM, CRX General Manager Line Investments & Property LLC
Nada Abou Saab Director, Marketing East Region Shopping Malls, Majid Al Futtaim Properties
Rony Aoun Founder & CEO SMAG SAL Lebanon
Will Rogers is famous for his simple, true to life quotes which have a dramatic impact. With this quote, our role comes to life at the MECS+R. Our team is successful because we know what we are doing, we love what we are doing and we believe in what we are doing. Bringing people together, sharing knowledge and promoting your business is our job.
Our team at MECS+R helps you to build networks and build your knowledge base. Nothing is better and more effective for your business than building and renewing solid relationships. Through us, your knowledge base in the retail industry continues to grow. Our team works tirelessly to ensure you have every opportunity to build and maintain your profile. To excel in the retail business all you have to do is participate, be active in the industry and be present at our many events held throughout the year.
Our team at the Retail People Magazine continues to receive fantastic support from our contributing authors. We thank you for your time to write these articles. Thank you also for allowing your work to be published with us.
Our February 2020 issue of Retail People Magazine features many new topics of relevance. Food & Beverage, insights from industry leaders, new products which are now available in the market, digital ecosystem, branding strategy, wellness branding, growth of specialty retail in Abu Dhabi, the new digital strategy and Uzbekistan are all showcased in this issue.
Our team at the MECS+R again would like to thank our authors, our advertisers and you, our readership, we thank you for your support.
Your success and our success has helped us to understand that creating an organization with a clear vision is the lasting legacy we seek. The clear vision is the only way to connect with our audience who are our members, customers, partners and employees. Our Retail People Magazine inspires trust and loyalty.
The MECS+R organization is founded on these values of trust and loyalty for over twenty-six years. Knowing your vision and keeping that vision in focus is essential for enduring success. An unwavering vision also provides for the ability to rise above the others.
We invite you to become more involved and we welcome your articles, views and insights in our Retail People Magazine. Reach out to Mariz at customercare@mecsc.org.
Thank you to our members, advertisers, authors and supporters who make each Retail People Magazine issue better and more meaningful with every quarter we publish.
DAVID MACADAM Chief Executive Officer MECS+R
MAZEN HAMZA QANDEEL MECS+R Board President Executive Director – Granada Center
News Brief
In LIFE Pharmacy, the leading Middle East pharmaceutical retail chain just inaugurated its new store on December 18th, 2019 at Festival Plaza, Dubai. The inauguration marked the prestigious launch of its 215th store.
Spanning across an area of 3500 sq. ft., this exquisite store was inaugurated by the Chairman of the Al Futtaim Group, Mr. Omar Al Futtaim. This store aims to redefine the shopping experience by catering to all your shopping needs in beauty and health. This one-stop solution will provide you with an expansive range of high-quality sports nutrition, skin and hair care, make-up, mother and baby care, and other products.
All the customers are greeted warmly with free sampling of delicious products. You can take your pick from refreshing ice cream topped with Barlean’s Omega 3, Sunshine Nutrition’s effervescent or Cool Gummies, which are a hit amongst the kids. Guests can discover and enjoy LIFE Pharmacy’s meticulous collection of products and bag some amazing deals. Inspired by today's beauty and skincare innovations, the store displays a special section of makeup and derma. The store is divided into beauty and body care zone with an array of daily essentials. The Mother and Baby zone allows you to explore avast range of products for your little ones. Pamper yourself at the Tristerzone and experience the Aromatic relaxation services.
The store provides you with an unforgettable retail experience as it is a true reflection of our culture and values. A delightful and warm welcome as you step into Life Pharmacy’s newly opened store, “your one-stop solution for beauty and health.” LIFE Pharmacy opened in your new local
In the year and decade ahead, consumer goods companies must go beyond the product to deliver services and experiences that are entirely relevant to the individual consumer when it really matters – while also contributing positively to the world. With that in mind, here are three trends that are set to shape the consumer goods industry this year: 1. Convenience, Redefined: Time-poor consumers will always need quick and easy food options that give them what they want instantly. For years, brands have been focusing on snacks to serve this consumer need. But for how much longer? With the focus increasingly on healthy eating, might 2020 be the year consumers hit the snacking saturation point? Today’s technologies open up so many more possibilities to give consumers exactly what they need. Convenience today is about doing the small things well, focusing on the detail and using digital technologies to deliver something that’s "just right" for each individual. Home delivery services are already meeting this kind of growing need. 2. Local Goes Hyper-Local: In 2020, more of us will be looking to slim down the intensity and environmental footprint of Three Trends to Watch in 2020
modern digital living. We’re seeking more sustainable, hands-on, tangible experiences. That’s bringing food production ever closer to the home. Local is going hyper-local.
Thanks to huge advances in technology and pervasive digitalization, hyper-local precision horticulture is becoming a viable option for everyone, even on a micro-scale. It opens up the possibility for everyone to grow food with reliable results, no matter how little outside space we have – or time to spare. 3. Tech Takes The Lead: Technology is now the key accelerator for consumer goods companies looking to achieve hyperrelevance at scale. The ability to blend both physical and digital experiences in individually personalized solutions is a big trend to watch for.
Consider how beauty brand Coty is changing the way it interacts with end-user consumers through augmented reality. Its Magic Mirror lets you try out different hair colors and find your preferred shade instantly. Currently the Magic Mirror is available only in professional hair salons, but it won’t be long before this innovation becomes the norm in retail stores or even at home. Source: CGT Insider, Laura Gurski (https://bit.ly/2NP1FZa) Ramez Shehadi, Managing Director of FACEBOOK MENA Shares Trends Shaping the Consumer Experience in 2020 Businesses continued to place their customers at the heart of everything they do. Brands that invested in serving relevant and personalized communications, products, and services emerged victorious, with higher brand awareness, higher customer retention, and even higher customer satisfaction ratings. As we enter 2020, we expect trends like messaging, ever-evolving technologies like AR and VR, and personalization to further shape the consumer experience. In order to go the extra mile to meet people, businesses in the MENA region can prepare by adopting new strategies and marketing tools to capture attention, improve customer support and drives business results. Source: Arabian Business (https://bit.ly/38vWvZR)
Bahrain Mall plans to Open 'first of its kind' Entertainment Hub Dilmunia Mall Development Company has announced that a major new entertainment hub at Mall of Dilmunia in Bahrain is in its final stages of development. Funscape World, the "first of its kind" in Bahrain, will offer a wide range of entertainment spaces which will include various zones. Sheikh Mohammed bin Duaij Al Khalifa, CEO of Mall of Dilmunia, said: “We are delighted to announce that Funscape World will be completed within the next few months. Funscape World aims to further diversify the existing realm of indoor entertainment and set a new standard for entertainment offerings within the Kingdom of Bahrain. Source: Arabian Business (https://bit.ly/2RIvHP9)
UAE Banks Offer $13.7bn Financing to the Retail Sector The UAE’s banking system increased the total value of financial support provided to the retail sector during the first nine months of 2019, according to statistics issued by the Central Bank of the UAE. By the end of September, the value of financing to retail companies reached AED50.4 billion ($13.7 billion), up by 5.4% or AED2.6 billion compared to the end of December 2018. The activity witnessed by the sector is in line with figures recently published by the National Economic Registry, which showed that the number of licenses issued in 2019 exceeded 40,000, state news agency WAM reported. Source: Arabian Business (https://bit.ly/2uvFIar)
Dalma Mall induces nostalgic moments for a gathering of over 15,000 fans with arabic folklore music
Dalma Mall was filled with euphoria and merriment as thousands of spectators gathered to attend the performance of the YouTube sensation, TAKKAT band. For their first international debut performance, TAKKAT witnessed an overwhelming gathering of over 15,000 fans who lined up in the mall hours before the concert began. Originally from Damascus, TAKKAT claimed its global popularity with its most popular song “Yum Alhob” with nearly 50 million views. Known to revive timeless melodies of the Arabic folklore songs, the band made its first international debut in the UAE at Abu Dhabi’s favourite mall – Dalma Mall.
Speaking on the occasion, Mr. Bhupinder Singh, General Manager & CFO, Dalma Mall said “The concert was absolutely mesmerizing. Apart from the success of the event, Dalma Mall is proud to identify such budding talents from across the globe and bring them to the UAE with an effort to offer something unique to our mall visitors. The band’s electrifying performance had the mall’s atrium and gallery jampacked with thousands of fans gathered to watch them live. After receiving such a tremendous response, we at Dalma Mall will continue to offer more of such events and performances throughout the year”.
The grand performance was organized over two days; the first one was hosted at the recently launched Fizz Lounge in Zeal Entertainment Centre on 16th January; followed by a public performance live at the main atrium of the mall on 17th January. A special meet and greet session was also organized with the band members for the Fizz Lounge customers. The band performed on traditional Arabic folklore revived from the old times, bringing back memories and melodies of the old back
to life. The group performed on a number of chartbusters from the world of Arabic music which included their most popular song “Yum Alhob” which has nearly 50 million views as of date and still growing. One of the band members while thanking the fans at the mall, said; “On behalf of the entire team, I'm grateful for this love, respect and enthusiasm that you have shown us. This is the first time we are in the UAE and I couldn’t have been more ecstatic to see such an overwhelming response.”
For more information on upcoming events and interesting activation in Dalma Mall, please visit www.dalmamall.ae
DUSOUL, the affordable luxury brand, celebrated a new step in its expansion by opening its boutique at the iconic Mall of the Emirates.
The new boutique is aimed at serving the discerning fashionista with its enviable line of jewelry designs & celebrity-endorsed international brands. DUSOUL showcases a unique mix of in-house designed collections, brought to life by the natural elements of sun, sea, sand and the stars which together form the icon of Dusoul.
DUSOUL, a Dhamani Group brand, is strategically positioning itself as the jewelry powerhouse for the aspirational and inspirational millennial generation. The new Mall of the Emirates outlet reflects this identity, providing a wide variety of handcrafted designs to find the perfect jewelry gift to suit any occasion.
Commenting on the opening, Dhamani Jewels Group CEO and Managing Director, Amit Dhamani, said that the UAE, and Dubai in particular, has been experiencing a rise in demand in the market for bespoke jewelry and ‘DUSOUL’ was created to meet that demand.
“As the undisputed fashion capital of the region, Dubai has been witnessing a growing need for exquisite and affordable local and international brands. In particular, jewelry tops the demand list and DUSOUL is poised to meet that demand. We have a collection of carefully selected jewelry pieces at very attractive price points at all DUSOUL stores in Dubai,” said Amit Dhamani.
Rohit Dhamani, CEO, DUSOUL, emphasized the brand’s commitment to giving jewelry enthusiasts in the region, quality products and designs, made available at an attractive price point which is the statement of the brand – Jewelry with Soul.
“We are proud to be marking yet another key milestone in our journey to bring to the region the finest jewelry collection that fits the dreams and aspirations of the Dubai fashionista. Our pieces are created with longevity and keeping the individual customer in mind. This is what separates DUSOUL from the rest - a uniqueness that also enables our customers to stand out from the crowd”. DUSOUL by Dhamani launches new boutique at the iconic location – Mall of the Emirates
BackLite Media wins exclusive 5-year deal with Novo Cinemas to supply on-screen advertising and branding for customers across the GCC
BackLite Media, the region’s premier outof-home (OOH) advertising company, has secured a deal with Novo Cinemas to manage on-screen cinema advertising and branding in UAE, Bahrain and potential new locations in Saudi Arabia.
The exclusive five-year deal, which commenced in January 2020, positions BackLite Media as the go-to media sales agency for all on-screen advertising and branding opportunities across cinemas by one of the region’s largest entertainment providers. The deal underscores BackLite Media’s commitment to expanding it’s offering and bringing its expertise to customers across the region.
With over 20 years’ proven experience in enabling advertisers to reach captive audiences of cinemagoers, BackLite Media will draw on its extensive partnerships with leading tech companies to deliver the most impactful cinema advertising. Through a focus on targeted buying routes for advertisers, the company will provide an excellent platform for brands to engage with their target audience, whilst ensuring a worldclass experience for cinemagoers.
Novo Cinemas is credited with pioneering change and transforming the entertainment experience in the region, consistently pushing boundaries and bringing innovative and evolutionary technologies to the cinema sector. With theatres that serve as ‘cinema experience
hubs,’ Novo has over 116 screens in 11 locations across the UAE and Bahrain.
Leveraging cutting-edge technology that backs Novo Cinemas, BackLite Media will offer advertisers a diverse choice of on-screen advertising and branding opportunities that will help deliver their message effectively to a wide crosssection of the public across the region.
Debbie Stanford-Kristiansen, CEO, Novo Cinemas, said: “As one of the largest and the most innovative cinema chains in the region, we are focused on providing best-in-class experiences for our viewers. Our cinemas, surging in the number of cinemagoers year-onyear, also serve as the perfect platform for advertisers to engage with their target audience. To continue delivering exceptional value to our advertisers, we are appointing BackLite Media, with its long-standing experience and presence in the region and proven expertise within the advertising sector, serves as a perfect fit for our goals. We look forward to a successful partnership together.”
Vindico Opens Opportunity with 10,000 Days of Education
The opening of Waitrose & Partners at The Galleria Al Maryah Island in Abu Dhabi is the 10,000th time Vindico has coordinated the people and processes to open a retail brand’s store inside a new shopping centre. In celebration, Vindico launched ‘Opening Opportunity’ and has given 10,000 days of schooling to children in India, an opportunity of education for every shop or restaurant that Vindico helps open.
Peter Row, Vindico Co-Founder explains: “As entrepreneurs, we understand the role business can and should play in making a positive impact and as we have expanded internationally, we have always sought to be gracious guests in the countries we operate in. ‘Opening Opportunity’ puts these two values into action by becoming a business for good that gives back to the communities that host us.” “The next 10,000 brands we open in retail development projects will be very different – who they are, their physical formats and evolving commercial models. We see most of these being delivered in emerging markets such as India, where we will be launching in 2020, which as they open will also give many more children something we value greatly – the opportunities that come from education.” About the ‘Opening Opportunity’ launch event, Morne Fourie, General Manager for Marketing at Waitrose UAE said: “Vindico representing our Landlord partner, Gulf Related, made it easy for our team to focus on the design and fitout of our new store by managing the complexity that comes with the opening in a large shopping centre project. We are happy we could celebrate our collective effort in our new Waitrose Al Maryah.” Saudi's Muvi Says to Open Flagship Riyadh Cinema in Early 2020 Muvi Cinemas, Saudi Arabia's first homegrown cinema brand, has expanded its presence to Riyadh, welcoming its first audiences at Al Hamra Mall. The first Muvi cinema in Riyadh accommodates over 500 guests in six screens, and also offers seats for audiences with special needs and has a concession area that hosts Skinny Pizza. Muvi Cinemas said in a statement that it will be opening its flagship location in Riyadh in the first quarter of 2020 at U-Walk. The openings are part of an aggressive expansion plan to launch 20 locations by end of 2020 across the region, the statement added. Source: Arabian Business (https://bit.ly/37rPBow)
Dubai-based Mouawad jewellery to expand to Asia Pacific by 2021 Jewellers to the stars, Dubai and Geneva-based Mouawad Group, is planning on expanding to the Asia Pacific starting in 2021 and continue the roll-out of stores over the next decade, according to Pascal Mouawad, co-guardian of the Retail Division. Mouawad is one of three brothers running the fourth-generation family business famous for its A-list celebrity clientele and Guinness World Records. “We have a strategy of continuing our expansion in different markets, specifically Asia Pacific; that’s our target for the next decade, so China, Hong Kong, Singapore, Indonesia and Malaysia. We want to expand our distribution network in that part of the world. Source: Arabian Business (https://bit.ly/2GfYmWL)
Nakheel Chairman Ali Rashid Lootah Resigns, Mohammed Ibrahim Al Shaibani to Chair New Board Nakheel, the master developer of Palm Jumeirah, has reshuffled its board with Ali Rashid Lootah resigning as Chairman and Mohammed Ibrahim Al Shaibani taking over. Lootah resigned to join Dubai World Board, which is headed by Sheikh Ahmed bin Saeed Al Maktoum. "Nakheel has managed under the stewardship of Lootah and his years of dedication to steady its course and return to profitability. On behalf of the new board, I would like to thank Ali and wish him the best of luck in his new role. He will undoubtedly bring his energy, drive and commitment to his new role and responsibilities," said Al Shaibani. Source: Khaleej Times (https://bit.ly/2upEygU)
The Al-Futtaim Group has opened its second “Festival” branded mall in Dubai, at Jebel Ali, and anchored by the largest Ikea Store in the UAE (at 35,500 square metres). In all, there will be 120 outlets at the “Festival Plaza”.
The Group also owns and operates Dubai Festival City, as well as another in Egypt. Initial forecasts are for the mall to attract 10,000 visitors a day, with the numbers picking up as the residential community being built next door - wasl Gate - gets delivered in phases. The first handover of homes at Wasl Gate are scheduled from next week onwards. Festival Plaza has an overall area of 648,000 square feet, and as is common in the mall industry these days, F&B options take up quite a significant portion.
Incidentally, the Festival Plaza is the second mall to have opened in Dubai in just over a fortnight’s time. The Nakheel Mall on the Palm delivered 1.1 million square feet of new capacity to the city’s retail and entertainment space. (There’s plenty more to come in the months ahead, at Dubai Hills (by Emaar), Al Khail Avenue and Deira Islands Night Souk (both from Nakheel). Source: Gulf News (https://bit.ly/2Rw8vFd)
The UAE Cabinet on Monday announced that Air Arabia Abu Dhabi would be one of the country's national carriers. The announcement was part of the Cabinet's first meeting during 2020 the Year of Preparation, chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The UAE Cabinet approved Air Arabia Abu Dhabi as a national carrier airline for the UAE in order to enhance civil aviation in the country and to allow the aviation sector to keep pace with future development plans and
directions. The resolution reflects the importance the government attaches to the aviation sector.
The UAE government has invested considerable effort to improve this sector and support all the businesses working in it. The government gives the aviation sector all forms of support in line with the comprehensive development plans occurring in the country. Source: Khaleej Times (https://bit.ly/2RQvtFO) Arada welcomes Spinneys, Starbucks to Nasma Residences Nasma Residences will play host to Starbucks, the worldwide coffee house company, and Spinneys, the Middle Eastern supermarket chain, after both brands signed agreements to lease retail space at the New Sharjah project that is being developed by Arada. The Spinneys and Starbucks outlets will be based at Nasma Central, the project’s community and retail complex, which overlooks a lushly landscaped 13-acre park. Featuring almost 44,000 square feet of leasable space, Nasma Central will also include a Bright Education preschool, a Health First pharmacy, an Emco Express laundry, the Arada Gym and Clubhouse, an 8,600 square foot centre for health and wellness that will include a swimming pool. Sixty-five percent of Nasma Central has now been leased out. Source: KBW Investments (https://bit.ly/37wkvvT)
Carrefour opens first store in Uganda The first Carrefour store in Uganda was officially opened by trade, industry and cooperatives minister, Amelia Kyambadde in Kampala recently. “The entry of a global retail brand like Carrefour goes a long way in ensuring that the expanding community is catered to. With rapid urbanization, there is an increased demand for superior and high-quality products offered at great value, and we are very confident that in Majid Al Futtaim, we have the right partner,” she said. Majid Al Futtaim, is the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia. Located at the popular Oasis Mall, the store covers 2,800 square metres, catering to the evolving customer needs in Uganda and responding to the growing demand for modern retail in Kampala. Source: 256 Business News (https://bit.ly/3aL7q3R)
Lulu to open 20 Hypermarkets in the UAE over 2 years UAE retailer Lulu Group has announced that it will open 20 hypermarkets in the UAE within the next two years which will further dominate its retail threshold in the country, according to Yusuff Ali MA, Chairman and Managing Director of Lulu Group International. Lulu opened 2020’s first hypermarket in Dubai South, Festival Plaza Mall, which is close by a 15-minute drive from the stateof-the-art venue of this year’s most awaited world event, EXPO 2020. Dawoud Al Hajri, Director General of Dubai Municipality inaugurated the new store in the presence of Yusuff Ali M.A, Chairman and Managing Director of LuLu Group and other dignitaries. The hypermarket which is also 186th of the group will feature LuLu’s new design format of world-class layout and aesthetic lighting that mirror the combined contemporary approach and industrial style. Source: Zawya (https://bit.ly/2RVO03G)
