RESILIENCE & OPTIMISM
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CONTENTS
CONTENTS The Middle East Council of Shopping Centres & Retailers 2nd Floor, DAC Office 207 Unit No. 11, The Offices 2 One Central, DWTC P.O. Box 9292, Dubai, UAE Tel. No.: +971 4 516 3061 Mob.: +971 56 548 1380 www.mecsc.org www.retailcongressmena.com
David Macadam
Chief Executive Officer david@mecsc.org
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Lea Venezuela Director lea@mecsc.org
Khaye Comanda Associate Director khaye@mecsc.org
Mariz Matocdo
Marketing Officer customercare@mecsc.org
Christian Baldonanza Digital Media & Innovation Manager
connect@mecsc.org
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WELCOME REMARKS
06
NEWS BRIEF & What’s New?
Relationship and Business Development Manager publishing@mecsc.org
Membership Executive membership@mecsc.org
Partnering Through a Pandemic
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The Need for Recovery Action Planning in Retail
26 Reimagining the New Normal for Retail 28
Insights on Resilience and Optimism
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The Consumer Journey Has Changed
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The New Normal – Luxury Resale
Food Central at City Centre Deira Serves Up a Perfect Example of Retail Optimism and Resilience
SPECIAL REPORT
SHOPPING CENTRE UPDATE 20
Silicon Central: Transforming Shopping into an Experience
SPECIAL FEATURE Angelo Dominic Lunas
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ON THE COVER
16 Consumer and the New Reality by KPMG Justin Espiritu
FEATURE
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Retail Real Estate User Engagement During “New Normalcy”
34 Getting UAE Healthier with Let’s Organic 35
Yardi Aspire Expands
36 Now: The Best Time for Transformation FEATURED MEMBER 38
One-on-One with Fahad Abdulla Al Othaim, Chairman at Abdullah Al Othaim Investment Company, Saudi Arabia
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WELCOME
RESILIENCE & OPTIMISM
WELCOME “Heroes are heroes because they are heroic in behavior, not because they won or lost.�
Â
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ON THE COVER
N.N. Taleb – author, scholar, risk analyst, a man who deals with problems of randomness, probability and uncertainty
Food Central Perfect Example of Retail Optimism & Resilience
Thank you to Younus Al Mulla
MECS+R Chairman Senior Vice President - Retail International Development, Shopping Malls Procurement & Government Affairs Majid Al Futtaim Retail
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 Shabani Managing Director The Retail Agency
Marcello Larizza, CSM, CRX General Manager Line Investments & Property LLC
We all need heroic behavior in our everyday lives these days. Our lives at the MECS+R and everyone’s lives globally have been a struggle in many ways over the past months. What we have learned is heroic behavior shows leadership. With the struggle, we become stronger and more able to successfully manage what we face daily through heroic behavior. Our team is successful because we are able to move quickly embracing the change. The team at MECS+R is a small dedicated group committed to our members. Our first Virtual Retail Congress is nearing readiness to launch on October 26 & 27. The final details are nearing completion thanks to the support of our speakers and team. We enable our members to facilitate their businesses. More than ever in 2020, we successfully bring people together to share knowledge and to promote your businesses in these ‘new normal’ times. Join us in celebrating the Retail Congress together online for the first time!!! With newly created digital platforms, the team at MECS+R can now help you to re-establish your networks and assist you to build on your knowledge base. Through us, your knowledge base in the retail industry continues to grow. Our team works tirelessly through our many areas of digital reach including the Retail People Magazine, What’s-Up Retail monthly newsletter and our recently launched E-Learning Platform GVS Global School for all Retail Professionals. Additionally, our Voice on Demand Podcasts, Video on Demand YouTube channel and our recently launched VLOG, all ensure you have every opportunity to build and expand your business. 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 digitally and physically held throughout the year. The Retail Congress issue of the Retail People Magazine is always the most popular edition. Other articles in this issue include The Customer Journey, Leisure Way, The Transforming Shopping Experience, LIP and Silicon Central, Organic Cuisine in Dubai, Second Hand Luxury – Gen Z and Millennials and Yardi Aspire expands education opportunities. Our team at the MECS+R again would like to thank our authors, our advertisers and you, our readers, 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. 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.
Nada Abou Saab
Director, Marketing, East Region Shopping Malls Majid Al Futtaim Properties
Rony Aoun
Founder & CEO SMAG SAL Lebanon
Wail Balkhair
Chief Commercial Officer Jabal Omar Development Company
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DAVID MACADAM
Chief Executive Officer MECS+R
MAZEN HAMZA QANDEEL
MECS+R Board Presidentv Executive Director, Granada Center
NEWS BRIEF
News Brief
New 15,000sqft dining destination to open at ICD Brookfield Place in Dubai’s DIFC
A new massive 15,000 square foot dining and entertainment destination is set to come up at the recently opened ICD Brookfield Place in Dubai’s DIF. ICD Brookfield has signed a pre-let agreement with Dubai-based food and
beverage company Bull&Roo Hospitality Investments for the concept. The value of the deal was not disclosed. The new destination, called The Guild, will feature eight different homegrown brands. It is slated to open in 2021.
“We are creating a new dining concept, unlike any other in Dubai, and the team is gearing up to launch an all-encompassing experience,” said Tom Arnel, Managing Director of Bull&Roo. Located in the DIFC, ICD Brookfield Place is a 1.1 million sqft office and retail complex, designed by architects Foster & Partners. The property features four acres of dining, retail and community space including a public area for arts and events along with an exclusive private member’s club, The Arts Club from London. The 53-storey project opened its doors to the public and a first wave of tenants last month, including Julius Baer, Natixis, Latham & Watkins, and Akin Gump. ICD Brookfield is a joint venture partnership between Investment Corporation of Dubai (ICD) and Brookfield Asset Management. Source: Gulf Business (https://bit.ly/2FImaWA)
World’s Largest Fountain Launched at The Pointe
The Pointe, Dubai’s premier lifestyle and dining destination by Nakheel Malls, launched the world’s largest fountain. ‘The Palm Fountain’, Palm Jumeirah’s latest waterfront attraction, will attempt to break a Guinness World Records™ (GWR) title on Thursday, 22 October during its inaugural launch event, and the public is invited to witness the celebration. Spread over 14,000 sqft of seawater, the fountain’s super shooter will stand tall at 105 metres and come alive with over 3,000 LED lights. The attraction is the only multicoloured fountain in Dubai and is a celebration of Dubai’s resurgence and ambition to aim for the sky. On the launching day, visitors of The Pointe were
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invited to enjoy an entire day of festivities, with all-day events and competitions from The Pointe’s restaurants and, starting at 4pm, an array of live entertainment including multiple DJ sets, dance shows, performers, a magical fireworks show. Omar Khoory, Managing Director, Nakheel Malls, said: “Nakheel Malls is proud to launch The Palm Fountain, a celebration of Dubai’s resilience and building on the expanding portfolio of iconic attractions on Palm Jumeirah. As pioneers of retail and lifestyle destinations in Dubai, the launch of The Palm Fountain is a testament to our commitment to support retailers and push boundaries to provide our customers with unique
experiences. We look forward to the inspiration this will bring customers at The Pointe, residents of Palm Jumeirah, our retailers, tourists, and the wider community”. Ahmed Al Khaja, CEO of Dubai Festivals and Retail Establishment (DFRE), said: “The Palm Fountain is yet another incredible addition to Dubai’s list of world-famous landmarks and is sure to be a big draw among residents and visitors alike. Its launch further cements the city’s status as a must-visit destination where guests from around the world can experience the best sights and sounds as well as unrivalled retail and tourist spaces. The Pointe’s standing as one of Dubai’s premier dining and leisure destinations has been further elevated with the unveiling of this record-breaking new attraction.” The Palm Fountain will have 20 bespoke shows with five different shows running daily between sunset to midnight (7pm to 12am) while swaying to an array of popular songs including Khaleeji, pop, classic, international and more. Each show will last for three minutes and will be performed every 30 minutes. Here’s the Youtube video. https://bit.ly/3mg9w0w
COMMUNITY MALL AL KHAWANEEJ WALK OPENS IN DUBAI New Community Mall Al Khawaneej Walk has opened its doors, hosting a string of homegrown and international brands for residents and visitors in the Al Khawaneej neighbourhood. The architecture of the mall embodies that of an agricultural greenhouse, blending rustic and modern design elements to offer visitors a vibrant social hive. Occupying both indoor and alfresco spaces, the venue also holds an 18-metretall rustic windmill and Last Exit Al Khawaneej, Dubai’s food truck destination. Al Khawaneej Walk brings new retail, F&B, Leisure and Entertainment choices, including the Géant Hypermarket, the American Hospital Clinic and a new warehouse gym with a ladies-only section and a 25-metre swimming pool. It also
offers the UAE’s largest Roxy Cinemas for movie bluffs. Local fashion and F&B brands such as Wanderlust, Surreal and Elyah Fashion, along with spas and salons have too found space in the Al Khawaneej Walk mall. Youngsters can enjoy at Kidoos, an interactive and supervised indoor play area, or at The Arcade by Hub Zero, a gaming zone offering a range of PC games, simulators, virtual reality (VR) experiences and other play zones. All points of entry and exit are equipped with thermal scanners, while all facilities adhere to the stipulated hygiene and safety regulations. Al Khawaneej Walk is open from 10am until 10pm from Sunday to Wednesday, and from 10am
until midnight from Thursday to Saturday. Source: Gulf Business (https://bit.ly/2GiIki4)
Expo 2020 Dubai Sends Message of Resilience as 1-year Countdown Begins Organisers of Expo 2020 Dubai said they aim to spread a message of hope amid adversity ahead of the fair opening on October 1 next year. With exactly a year to go until the Expo begins, fresh ideas on health, connectivity and travel will be shared to help people reconnect amid the Covid-19 pandemic. Organisers said they aim to convey the spirit of collaboration that will bring 192 countries together on the Dubai South site for the first Expo in the Middle East, Africa and South Asia.
Construction of the country pavilions will be finalised by the end of the year and work over the last few months has been focused on landscaping and readying Expo-owned structures. “Our leadership has spared no effort, guided us, and provided all resources to ensure that our World Expo will be a true expression of the UAE’s values, reflecting its ambition to build a better future for us, the region and the world – a future of which coming generations will be proud,” Ms Al Hashemy said.
The World Expo will run from October 1 to March 31 with themes that aim to inspire visitors to alter the way they think and live. Businesses, educational institutions and governments will showcase projects that will highlight solutions to resolve pressing global challenges in sectors from energy, sustainability, agriculture and health.Source: The National (https://bit. ly/34j7OE8)
“Our World Expo has a mission to inspire hope, and in the coming weeks we will begin to share new details and ideas about space, health and wellness, travel and connectivity and other subjects that sit at the heart of this Expo,” said Reem Al Hashemy, UAE Minister of State for International Cooperation and Director General of Expo 2020 Dubai Bureau. New images showing progress at the site were released to reflect optimism about the future. Ms Al Hashemy thanked international participants and state entities for remaining committed to delivering the event. “The journey has been worth it, and in 365 days we will share our excitement and our passion with millions.”
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NEWS BRIEF
News Brief
Modon Set to Open Abu Dhabi Leisure Waterfront Community
UAE-based Modon Properties will soon be opening up its Hudayriat Recreational waterfront community, located within the 3,000-hectare Hudayriat Island, southwest of the Abu Dhabi main island. The move comes following a directive from HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to open the development for the public within a month. Sheikh Mohamed visited the Al Hudayriat Project site yesterday (October 14), during which, he was shown around the facilities of the key entertainment project, being developed by Modon Properties, a subsidiary of ADQ that specialises in developing vibrant and sustainable residential, in collaboration with the Department of Municipalities and Transport, Abu Dhabi.
of pearl diving in the UAE. The tour also covered the project’s ‘Marsana’, which represents the waterfront marine located in the heart of the project and includes a lineup of restaurants, an ice rink, and a kids waterpark. The Hudayriat Recreational Project is Modon’s second leisure destination after Jubail Mangrove Park announced late last year by Modon Properties as part of a series of entertainment schemes aimed at representing a shift in the leisure offerings within the emirate of Abu Dhabi. Sheikh Mohamed underlined Abu Dhabi’s determination to develop inclusive and unique environmental projects and increase green spaces across the emirate in a way that ensures
a healthier lifestyle for its community in addition to boosting social bonds, attracting visitors and tourists and turning the emirate into a haven for ecotourism. “Al Hudayriat project and other similar developments represent a qualitative addition that reinforces Abu Dhabi’s status on the global tourist map,” Sheikh Mohamed added. Department of Municipalities and Transport Chairman Falah Mohamed Al Ahbabi said: “In line with the directives of our wise leadership, we take pride in contributing to introducing this valuable addition to Abu Dhabi’s tourist and leisure offerings. We will continue at the Department to provide a sustainable environment for the future.” Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info)..
The Abu Dhabi Crown Prince was shown around 10 leisure facilities as part of the project, including the ‘Stars Gate’ which provides a unique destination for camping; ‘321 Sports Village’, which encompasses sports playgrounds and jogging and cycling tracks; ‘Challenge Village’; and ‘Hudayriat Heritage Walk’ which extends along the waterfront and provides the visitors with a cultural background of the island and the history
SEVEN Shares Exclusive Updates on Theme Parks in Saudi Arabia SEVEN’s head of attractions, Damien Latham, has shared exclusive updates including the locations of the company’s two theme parks in Saudi Arabia during the first ever blooloop V-Expo. Latham spoke about creating enduring entertainment destinations in Saudi Arabia, which is working on a host of attractions as part of Vision 2030. This aims to diversify the economy in order to reduce the country’s reliance on oil. SEVEN, a subsidiary of the Public Investment Fund (PIF), is developing a world-class entertainment ecosystem in Saudi Arabia. “SEVEN, and other entities under the PIF banner, are clearly all focused on that goal of developing entertainment infrastructure and bringing in world-class attractions to the Kingdom,” said Latham.
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“It’s 20 entertainment complexes across 14 cities and 50 cinemas, in our partnership with AMC cinemas, and two major theme parks. We are currently at a more advanced stage of design with our entertainment complexes here in Riyadh,” continued Latham, who also discussed IP. “We are talking to a number of global IPs that are interested in coming into the Kingdom and working with us, and we’ll continue to extend that invitation to others. The sheer amount of entertainment that we’d like to bring in, we’re inviting a multitude of different IP partners to begin those discussions and really start to evolve something and create something new and unique. I’m hoping that within the early part of next year, we will be able to make some key announcements there,” said Latham.
“When you’re in 14 different cities, you’ve got the potential there, we think, to create more than 22,000 jobs across KSA.” SEVEN theme parks located in Dammam and Abha. Source: Blooloop (https://bit. ly/316dUHl)
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WHAT’S NEW
What’s New? 4 Fashion Brands with SoHo Stores on the Future of the NYC Shopping District
SoHo, long one of New York’s most desirable retail hubs, has been undergoing a transformation since the pandemic began. For years, it’s been the go-to neighborhood for hip, mostly-online brands looking to make the most impact in brick-and-mortar with the fewest number of stores. It’s not uncommon for brands to have only a single store in SoHo and nowhere else. But SoHo was also strongly reliant on tourist foot traffic, something that has largely dried up and likely won’t return in full force for a while. Source: Glossy.co (Read More: https://bit.ly/352ZQzy)
Amazon Tests Palm Biometrics for Retail Transactions
Talk to the hand — that silly phrase could take on new meaning in food and other forms of retail, thanks to Amazon’s latest effort involving biometrics. According to Dilip Kumar, the company’s VP, physical retail and technology, Amazon One “is a fast, convenient, contactless way for people to use their palm to make everyday activities like paying at a store, presenting a loyalty card, entering a location like a stadium or badging into work more effortless. The service is designed to be highly secure and uses custom-built algorithms and hardware to create a person’s unique palm signature.” Source: Progressive Grocer (Read More: https:// bit.ly/37bGgns)
Zipline to launch on-demand deliveries of healthand-wellness products, first near the company’s headquarters in Bentonville, Arkansas. Now, Walmart has its sights set on making COVID-19 testing easier in partnership with Quest Diagnostics and DroneUp. The retailer is piloting drone delivery of at-home COVID-19 selfcollection kits, an innovative new way to provide additional, and contactless, testing options. Trial deliveries of collection kits in North Las Vegas start today, and those in Cheektowaga, New York, start in early October. Source: Progressive Grocer (Read More: https://bit.ly/37bGXgy)
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Post-COVID Rebound Seen Pushing Uniqlo Owner to Record Profit by 2021
Bed Bath & Beyond Sheds Some Retail Weight
Bed Bath & Beyond will sell its Christmas Tree Shops retail banner, its institutional Linen Holdings business and a distribution center located in Florence, New Jersey. The retailer, in the midst of an omnichannel push that also included job cuts, said it expects to generate approximately $250 million in aggregate from the monetization of these assets as it continues to optimize its portfolio, potentially including the sale of additional non-core assets, to further increase its financial strength and enhance shareholder value. President & CEO, Mark Tritton said, “Customers are responding well to the introduction of our new omni-always services, and we will continue to invest in our digital-first experience with a customer-inspired assortment that makes it easy to feel at home with Bed Bath & Beyond.” Source: Retail Leader (Read More: https://bit.ly/343sBgi)
TOKYO -- Japan’s Fast Retailing, which operates the Uniqlo chain, said Thursday it expects its earnings to hit a record high in the fiscal year ending in August 2021, after the coronavirus pandemic dragged down numbers this year. The company expects its net profit to surge by 82% year-on-year to a historical high of 165 billion yen ($1.57 billion) in the year ending in August, surpassing a previous high of 162 billion yen in fiscal 2019. It expects sales to reach 2.2 trillion yen in the fiscal year ending next August, just below the peak of 2.29 trillion yen achieved in fiscal 2019. Source: Nikkei Asia (Read More: https://s.nikkei.com/3lUD9o1)
Kuwait’s Delivery App Talabat to Start Operations in Erbil
Levi’s Opening New Stores, but Transforming the Experience
Walmart Sends COVID-19 Tests Flying by Drone
Walmart has really stepped up its investment in drone delivery in the past month. First, the retailer launched a pilot in Fayetteville, North Carolina, with Flytrex to deliver grocery and essential items. Then, Walmart teamed with
than 60 doors year-to-date, although primarily internationally, and has added another 85 doors from organic acquisitions. Looking ahead, Levi’s plans to open around 100 smaller footprint stores in the U.S., up from 30, some of which will be NextGen stores. Source: RIS News (Read More: https://bit.ly/3k1U33j)
Levi Strauss & Co. is opening stores, at a time when other retailers are closing doors, but the retailer is also investing in transforming the store experience and infusing AI and data analytics tech into its operations. In the U.S., Levi’s opened its first new NextGen store in North America last month at the Stanford Shopping Center in Palo Alto, CA, offering customization techniques and enhanced digital features to drive storytelling and sales. The apparel retailer has opened more
Delivery app Talabat, owned and operated by German Delivery Hero, will start its operations in Erbil, the Kurdistan region’s capital, early next year. The app, launched in Kuwait in 2004, is already present in Kuwait, the UAE, Saudi Arabia, Bahrain, Oman, Egypt, Qatar and Jordan, and has plans to expand further, starting in Erbil, before moving on to Federal Iraq later in the year. Talabat CEO Tomaso Rodriguez said: “Iraq is a country with a definite love of food, which is why we cannot wait to enter the market. We’re excited to enable that rich culinary heritage to be shared to the broader community by further developing the online delivery experience for customers, and partnering with local restaurants to fuel their growth through our platform, as well as creating employment opportunities for local talent across our operations. Source: Zawya (Read More: https://bit.ly/37ev0GG)
Brick and Click: UAE Food-tech Kaykroo Plans GCC Expansion
The food and beverage industry has been among the hardest hit by COVID-19, as diners have stayed away from restaurants due to movement restrictions, but foodtech company kaykroo is shifting to a different concept. Kaykroo, which has announced its official launch of four new brands, has fulfilled 1 million orders since the start of 2020 and is planning to expand across the GCC after raising $4 million in pre-Series A funding. Jihad El-Eit, Founder & CEO of kaykroo, said: “For many, 2020 has been a year of unprecedented challenges. For us, it was the year of reinvention. The high demand we have witnessed since the start of the year, with more than one million orders fulfilled by our existing brands, proves that it is now more important than ever for our customers to be able to enjoy the food they love, anywhere and at any time.” Source: Zaway (Read More: https:// bit.ly/3lPZbZ0)
Saudi Wealth Fund Explores Investing in Grocer Lulu
Saudi Arabia’s $360 billion sovereign wealth fund is exploring a potential investment in Lulu Group International, which runs one of the Middle East’s largest hypermarket chains, according to a person familiar with the matter. The Public Investment Fund (PIF) is considering buying a minority stake in the retailer, said the person, who asked not to be identified because the information private. Representatives for Lulu and PIF declined to comment. The talks were first reported by Reuters on Wednesday. Source: Arabian Business (Read More: https://bit. ly/2FEFnbD)
coincided with the celebration of the launch of the project’s second phase. Cairo Gate is Emaar Misr’s first project in west Cairo, spanning an area of 133 feddans in the heart of Sheikh Zayed, with investments amounting to EGP 11.5bn. Mohamed Alabbar, Founder of Emaar Properties, said, “Despite the harsh circumstances faced by the global economy during the past few months, Emaar Misr has a solid management basis, and it always sets up scenarios for various risks along with plans on how to tackle them. The Cairo Gate project will be the window which Emaar will open for the world to see the beauty of this rich area, located in close proximity to the Grand Egyptian Museum, the Pyramids, and the vital business areas in Cairo and Alexandria”. Source: Daily News Egypt (Read More: https:// bit.ly/2T2vYOb)
KidZania Reopening Six More Global Attractions
KidZania has announced that six more facilities are ready to welcome visitors, including KidZania Bangkok, KidZania Abu Dhabi, KidZania Santa Fe and KidZania London. Also joining the 11 KidZania attractions that have reopened since April 2020 are KidZania Guadalajara and KidZania Cuicuilco. KidZania Bangkok reopened on September 15. Its main objective is to ensure that the ‘new normal’ doesn’t affect the entertaining and educational experience of KidZania. KidZania Abu Dhabi, which reopened on September 26, was granted a permit to reopen following a thorough analysis of the actions taken by the facility at Yas Mall. It is operating with a maximum capacity of 660 people. The company has 27 locations in 20 countries, and is developing 10 more attractions in markets including the US, Indonesia, South Africa. Source: Blooloop Read More: https://bit. ly/31lEQDc)
Masdar and Miral to Develop Solar project at Warner Bros World Abu Dhabi
Masdar, a leading renewable energy company, has signed an agreement with Miral to develop Abu Dhabi’s largest rooftop solar photovoltaic project at Warner Bros World Abu Dhabi on Yas Island. The project will provide an estimated 16,000 solar modules across the theme park’s roof area of 36,000 square metres and will produce nearly 40 percent of its annual energy demand. Masdar will provide a full turnkey solution for the 7-megawatt peak (MWp) project, including design, construction, operation and maintenance. Mohamed Jameel Al Ramahi, CEO of Masdar, said “buildingrelated emissions contribute almost 55 percent of global electricity demand”. “We are proud to be supporting Abu Dhabi’s 2030 energy efficiency strategy to reduce overall electricity consumption by 22 percent and we look forward to leveraging our energy services experience to support Miral’s efforts of implementing energy efficient solutions across its destinations and attractions.” Source: Blooloop (Read More: https://bit.ly/3kbHUJr)
IKEA to Open Online Store First in PH
Walmart CEO says TikTok Deal Would help make social media more shoppable
Emaar Misr Launches 2nd Phase of Cairo Gate Project in Sheikh Zayed
Emaar Misr announced that the foundation stone of its Cairo Gate project, located in the west Cairo district of Sheikh Zayed, has been laid. The Foundation Stone Laying Ceremony
of the newly created company — but the deal must still get government approval. As part of the business transaction with TikTok’s Chinese parent company, ByteDance, Oracle would become TikTok’s cloud provider and a minority investor with a 12.5% stake. Source: CNBC (Read More: https://cnb.cx/3lXuwck)
Walmart CEO, Doug McMillon, said that the retailer wants to own part of popular video app TikTok because it sees social media as a huge business opportunity and a powerful way to reach customers. In an interview on CNBC’s “Squawk Box,” he said Walmart sees TikTok as a “discovery opportunity” for consumers to find merchandise they want to buy. Walmart has tentatively agreed to a purchase 7.5% stake in TikTok’s U.S. operations, and McMillon would serve as one of the five board members
IKEA, the Swedish-owned home furnishing retailer, will open first its online store in the Philippines months before the physical store in the Mall of Asia complex in Pasay City opens next year. “The company is bringing Swedish home furnishings and meatballs to millions more people in the coming year as it enters both Mexico and the Philippines, with web shops opening up months before the physical stores in both countries,” the company announced this along with a report for its sales revenues in the southeast Asia. The Manila Ikea, the world’s largest IKEA store when it opens in 2021, is designed from the start to house an e-commerce fulfilment operation and a customer contact center. Source: Manila Bulletin (Read More https://bit.ly/3m9wbf3)
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COVER STORY
at City Centre Deira Serves Up the Perfect Example of Retail Optimism and Resilience S
uccessful shopping malls are more than just sizable indoor shopping centres. When designed to effectively engage with the people they serve, these impressive retail destinations become all-important pillars of the communities they operate in; standing tall as crucial sources of support that uphold the structure of modern towns and cities — of society. Operated by Majid Al Futtaim — the leading shopping mall, communities, retail, and leisure pioneer across the Middle East, Africa, and Asia — City Centre Deira is one of Dubai’s most successful malls.
region’s first flagship shopping mall to house international brands, dining outlets and entertainment offerings. Today, more than 22 million people visit the mall each year, frequenting its wide selection of food, retail, leisure and entertainment outlets.
The mall was launched in 1995 and is the UAE’s first shopping, lifestyle and entertainment mall. Nestled in the heart of the Deira area of Dubai, it also enjoys the proud distinction of being the
Food Central is the focal point of the mall’s AED 377 million redevelopment project; an ambitious project launched to further enhance mall visitors’ shopping experiences by creating a more
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In addition to celebrating its 25th anniversary, the mall recently introduced a new culinary experience to the region with the launch of Food Central: a one-of-a-kind gastronomic destination that redefines mall dining, providing a modern update on traditional food hall concepts.
memorable and convenient customer journey. In the wake of COVID-19, Food Central — as with City Centre Deira’s wider development — speaks to the resilience of Majid Al Futtaim, City Centre Deira and the retail industry. It attests to the grit and mettle the UAE as a whole is renowned for while reflecting the optimism of its consumers and the business community. That Majid Al Futtaim and City Centre Deira have invested so much time, money and resources to ensuring the mall remain successful in accomplishing its goals — creating great moments for everyone, every day — only goes to show that, in spite of the challenges presented by crises such as the coronavirus pandemic, there remains a great deal of confidence in the power of retail to inspire cherished memories for the friends, families and communities that have come to rely and lean on flagship destinations like City Centre Deira as the pillars of their lives. This investment has not only led to the introduction of Food Central, but it has also resulted in improved mobility and the enhanced flow of footfall to key parts of the mall to create an even smoother shopping experience; with additional elevators and escalators being unveiled in the mall’s Centre Court and East Court. These additions, as with that of Food Central, ultimately underline Majid Al Futtaim’s commitment to reacting swiftly and appropriately in order to match customers’ evolving behaviours, habits and demands.
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COVER STORY
While a number of notable and marquee businesses and brands have been left with little recourse or room for optimism, Majid Al Futtaim and its range of malls have been spurred on by the current circumstances to innovate; innovation is one of the secrets to its success over the years
— a key factor that has helped — and continues to help — the company develops unique experiences for its customers. Food Central is a prime example of this focus on innovation. The culinary concept was born from a desire to better serve mall visitors through engaging and immersive experiences. Shoppers and diners are invited to socialise, eat, drink, shop, and unwind; while enjoying unique and engaging installations such as a live beehive activation dripping with fresh honey, and Tube Dubai: an art installation consisting of flexible nets suspended from the walls and ceiling, forming a floating landscape for visitors to use as a social space and explore the venue from above. The new concept has been introduced in recognition of the fact that today, customers are looking for increasingly personalised experiences. It has been developed in response to rising consumer expectations for fresh and authentic dining options, with the innovative gastronomic destination
“
Food Central is City Centre Deira and Majid Al Futtaim’s response to this shift in preference. It delivers a renewed shopping and dining experience for the people of Dubai.
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serving up a variety of interactive dining experiences that immerse customers in the theatre of cuisines all around the world. Food Central is City Centre Deira and Majid Al Futtaim’s response to this shift in preference. It delivers a renewed shopping and dining experience for the people of Dubai. City Centre Deira’s redevelopment emphasises that innovation is crucial to overcoming challenges. The retail industry’s digital and e-commerce push reiterates this. This could also be seen with Majid Al Futtaim and its range of malls, such as City Centre Deira. With customers now prioritising safety and convenience when they shop, retailers and brands have fixed their attention on developing retail experiences that cater to this demand. This has led to the omni-channel era of retail; one marked by accessible, streamlined experiences in which customers can engage with their favourite stores using an app or by visiting a retailer’s website. Majid Al Futtaim has risen to the challenges posed by COVID-19 to develop a robust digital and omnichannel strategy to deliver pioneering concepts that constantly set a new benchmark in retail, property, leisure and entertainment. Over the course of the last few months, the company has introduced offerings such as Click & Collect, which allows customers to shop online and collect their groceries from a pick-up spot at an allotted time; as well as a new, engaging platform set up to present customers with a glittering array of luxury and exclusive brands: THAT pop-up store and curated multi-brand mobile app, offering shoppers
even more access to exclusive luxury collections. In addition to THAT and Click & Collect, Majid Al Futtaim has also launched Trends at Your Doorstep (a platform launched to help its UAE mall tenant partners continue trading following the government-mandated closure of malls). As technical as all this might be, people are still very much at the heart of these innovations; with malls such as City Centre Deira using these digital platforms to please and create more great moments for their customers. It is this human-centric philosophy that shapes the mall’s many corporate social responsibility efforts and sustainability; be it helping Majid Al Futtaim to accomplish its goal of having a Net Positive business model by 2040, or pushing for energy efficiency. It is this single-minded determination to curate spaces where families, friends and communities are given endless opportunities to craft memories that not only speaks to the retail industry’s confidence in its future but inspires it.
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In launching Food Central, City Centre Deira continues to innovate and evolve in line with customer needs and Majid Al Futtaim’s vision for the retail sector.
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SPECIAL REPORT
CONSUMER & THE NEW REALITY "Credits: This report was originally published on KPMG website" To understand the lasting impact of COVID-19 on consumers’ needs, behaviors and preferences, KPMG International has sponsored a consumer pulse survey of over 70,000 consumers across 12 markets in six separate waves from May – September 2020. Each wave set out to determine how the evolution of COVID-19 is affecting consumer behavior and in turn, what implications this will have for organizations. Broad sector coverage with deep dives into: - Grocery retail / non-grocery retail
- Travel & Tourism
- Banks
- Entertainment & Leisure
Trust in retail has been eroded
- Insurance
Retail, and grocery retail in particular, was initially seen positively during the COVID-19 situation. Trust in these sectors was higher than any other — however as time has passed, this trust has eroded with a significant decline compared to W1 (-10% for grocery, -8% for non-grocery). Net trust is now negative for both sectors. Net trust has declined for both grocery and non-grocery retail — with more customers now saying they have less trust in the sector than before.
+8% +3%
August 2020
May 2020
Grocery
I trust the sector more than before COVID-19 I trust the sector less than before COVID-1 9
-2% Non- grocery
-5%
Percentage showing net trust, i.e. trust more than before minus less than before And to what extent do you trust each type of company now, compared with before the start of the COVID-19 situation?
Retailers need to demonstrate that they are still taking personal safety seriously in order to rebuild consumer trust. It requires a restoration of visible aspects of customer safety that were evident during periods of lockdown.
Source: Consumers and the new reality, KPMG International, May–August 2020
Trust is driven by retailers demonstrating the same values that customers hold themselves — customers are expecting retailers to focus even more on protecting customer safety. #1 driver of trust in grocery retail (#2 non-grocery)
Brand’s values match my own
#1 focus expected by customers: More social distancing and hygiene safety measures in store Increase in importance since May/June
+4%
Drivers analytics, importance of purchasing attributes against trust in sectors Which of the following is important to you now when buying a product or service? Thinking about you as a customer, what type of things do you think grocery/non-grocery retailers should be focusing on now, as a result of COVID-19? Source: Consumers and the new reality, KPMG International, May–August 2020
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Consumer spend has increased — reflecting the necessity faced by many customers to consume more at home.
Grocery baskets are larger, but filled less often
This is in contrast to spend on non-grocery — across almost all markets, particularly Hong Kong (SAR), China (+33 percent), mainland China (+24 percent) and Brazil (+19 percent vs. pre-COVID-19). France is the exception (-1 percent). Customers are shopping less often and are much more thoughtful about where they choose to shop — especially in Canada and France, where frequency is even further reduced (-45 percent and -29 percent respectively vs. pre-COVID-19). Net spend on grocery is expected to increase as more customers consume at home… Net spend
Pre-COVID-19
Next 6–12 months
+11%
Financially secure customers feel they will spend more ( 16 percent) with even financially overwhelmed customers spending more than pre-COVID-19 (+8 percent)
Percentage showing net spend, i.e. spend more than before minus less than before And thinking about your monthly spending, how do you think this will change in the next 6–12 months compared with before COVID-19? Source: Consumers and the new reality, KPMG International, August 2020
Grocery spending is up despite a loss of trust. Retailers will need to better understand the motivations behind this behavior if they are to encourage customers to stay loyal once restrictions are lifted.
… but they are shopping less often than before COVID-19.
-17% Pre-COVID-19
Net frequency Financially overwhelmed customers are shopping less often (-19 percent)
Now
Percentage showing net frequency, i.e. shop more often than before minus less often than before Are you shopping for groceries more often, the same or less often now than before COVID-19? Source: Consumers and the new reality, KPMG International, August 2020
Dramatic drop seen in nongrocery spending
Customers believe they will spend far less in the future on their non-grocery retail. This pattern is reflected in all markets. Retailers need to consider what steps can be taken to restore customer confidence. Similar to grocery, personal safety is a key driver of customers to online channels and a necessity in store. Decreased spend on non-grocery is seen across all markets. US (-20 percent), Germany (-25 percent) and mainland China (-25 percent) see a slightly smaller degree of reduced spend but still significant compared with pre-COVID-19 Website channels have risen in use for retail while use of large stores has fallen dramatically. +35% +24% Large supermarkets/ stores
+21%
+14%
Large retailer websites
Other online for grocery
Online shopping services, e.g. Amazon
-23% -39% Grocery
Non - grocery
How have your shopping habits with retailers changed during COVID-19? Source: Consumers and the new reality, KPMG International, August 2020
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SPECIAL REPORT
Non-grocery retailers need to provide compelling reasons as to why customers should visit their stores or websites and make purchases in the short-term.
With digital the undisputed channel of growth and being a key way to meet customers’ new expectations, brands must ensure their online offerings are easy to use and integrate seamlessly with their overall omni-channel offering. The profitability of the channel will also need to be reviewed carefully as in many cases, online is far superior to the physical store. What does this mean that the role of the physical store? Do retailers need to think about how to best use their physical space to maximize their returns? The industry will also need to assess many of its traditional KPIs such as sales per square meter and how they suit this new reality. Customers state a willingness to return to stores but only if their concerns over personal safety are alleviated. This will require detailed store planning to improve safety by minimizing touchpoint exposure and reducing potentially harmful interactions.
Use of online channels is driven by a desire for personal safety and convenience of the channel. For grocery, safety is even more of a concern for financially overwhelmed customers (53 percent).
26%
Grocery
Easier to find what I want
Non-grocery
27%
30%
Easier to pay
Quicker process
38% Easier to compare products
50% Safety/Don't need to interact with people
44% Easier to find what I want
44% Flexible delivery options
56% Safety/Don't need to interact with other people
Why do you think you will continue buying online/your groceries more online? Source: Consumers and the new reality, KPMG International, August 2020
Only 1 in 3 customers express a strong desire to return to large supermarkets/stores in the future — there is still a lot to do to build consumer confidence.
35% Grocery
36%
Non - grocery
Do you miss going to supermarkets/large retail stores as often as you used to? Answering Yes, and seeking to return as soon as possible. Source: Consumers and the new reality, KPMG International, August 2020
Customers expect visible evidence that retailers are addressing their expectations for safety, before they would be more willing to return.
What would convince you to return to large stores? Grocery
Non-grocery
1 Sanitized baskets/trolleys
1 Enforced social distancing
2 Provide hand sanitizer
2 Provide hand sanitizer
3 Enforced social distancing
3 Limited number of customers
4 Lower prices
4 Lower prices
5 Staff wearing PPE
5 Sanitized baskets/trolleys
What would a supermarket/large store need to do to encourage you to go back to a store, in the near future? Source: Consumers and the new reality, KPMG International, August 2020
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Consumers will pay more to support their community
Support for local suppliers has continued over the past months, with a strong desire to support the community as well as the perception that local goods are higher quality. Predicted use of local suppliers has decreased slightly over the past months, but still remains high. Consumers continue to feel strongly that they will make greater use of local suppliers in the future and they are also still willing to pay more for goods when they do.
Down 3% vs.W1
Grocery
Percentage showing the net change (% more likely to use, minus % less likely to use) post-COVID-19) Thinking about your personal preferences in grocery/non-grocery shopping, how do you think your brand preference will change in the future, once all restrictions are lifted, compared with before the COVID-19 situation? Less/same/more
20%
18%
Down 5% vs.W1
Non- grocery
88% s
When you buy from local suppliers, would you be willing to pay more for locally sourced products in the future?
85%
Source: Consumers and the new reality, KPMG International, August 2020Source: Consumers and the new reality, KPMG International, August 2020
While value for money remains
Beneath the surface desires to support the local community, there is an undercurrent of safety conscious behavior — including perceived safety of buying locally, and wishing to travel less distance.
the most important driver of consumption retailers and suppliers should try and avoid a race to the bottom.We are experiencing a signiďŹ cant trend towards supporting local suppliers and this could offer an opportunity to counteract this price pressure. Many consumers tell us that they would pay more to support their local community. This may have implications for large retailers who could partner with local suppliers and global brands who may consider localizing their brand strategy.
62% Why do I want to use local suppliers more in future?
72% 48% 47% 37% 38% 31% 38% 36% 34% 36% 32%
Want to support local community
Products are made/sourced locally
Safer to buy locallySafer to buy locally
Less travel time
Better for environment
Products better quality
Why do you say you will buy more from local suppliers once all restrictions are lifted? Source: Consumers and the new reality, KPMG International, August 2020
To view the full report, click this link: https://bit.ly/3obJZr1
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SHOPPING CENTRE UPDATE
Silicon Central
‘Transforming Shopping into an Experience’
Mr. Salim MA Director Lulu Group International
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“Our vision is to enhance the retail experience for our customers and partners and receiving awards for all the malls that took part is a testimony that the Line Investments & Property team is committed to excellence in the new age initiatives and community events they bring to the malls.”
T
he shopping mall and management division of Abu Dhabi-based Lulu Group International, Line Investments & Property LLC (LIP) boasts an impressive portfolio of malls through the Gulf and India. Moreover, with a strategic vision for future growth and development across the GCC, LIP reiterates its position as a renowned industry leader in offering the right kind of support to make any brand a sure-fire winner as it introduces its retail project in Silicon Oasis. LIP’s latest development is Silicon Central in Dubai, a threelevel retail and leisure destination that will provide an enhanced shopping experience to its neighbouring communities. With a total of 220 stores in 81,500m2, Silicon Central will include a 9,000m2 hypermarket and a 7,800m2 department store, alongside a 35,500m2 array of retail shops and services that will offer a broad mix of brands tailored to ensure shoppers’ complete satisfaction. Adding to the unique shopping experience, a diverse range of dining options will comprise of 24 casual restaurants and cafes as well as 21 food court units, making it the perfect place to catch up with friends and families in an enjoyable atmosphere or to enjoy a quick snack on the run. A wide range of entertainment options are also on offer, including a 12-screen cinema, a 6,800m2 Family Entertainment Centre, incorporating a 2,000m2 New Generation Entertainment Centre for both kids and grownups to stay active, plus a 2,500m2 gym to keep the community in shape. It’s all about convenience
Traditional Marketing: Digital Campaigns & Social Media Khalidiyah Mall for Enhanced Website (Silver) Traditional Marketing: Sales Promotions & Events Mushrif Mall for Talentology 2019 (Silver) The winners of the Retail Congress MENA Awards 2019 were selected by a jury of regional and international industry experts in retail.
Line Investments & Property LLC (LIP) reiterates leading position as the preferred investment and property management company for the retail sector with a focus on the upcoming Silicon Central project in Dubai. and accessibility, with nothing forgotten, including 3,500 car parking spaces. With such a broad range of options, Silicon Central is set to be the destination of choice for families and entertainment seekers throughout its immediate catchment area, which takes in a population of 500,000 people, and further afield. LIP’s success and commitment to excellence have not gone unnoticed either, with the organisation picking up five awards at the Retail Congress MENA Awards 2019. Held in the Ritz Carlton, DIFC, the Awards Ceremony honoured the most outstanding achievers in the shopping mall industry in the MENA region. LIP took part in the event together with entries from Mall of Um Al Quwain, Al Wahda Mall, Mushrif Mall, and Khalidiyah Mall, winning one gold and four silver awards in the following categories:
With unparalleled expertise stretching across every conceivable specialist field of endeavor, including locationsourcing, design, development, management and marketing, LIP is fully committed to being the preferred investment and property management company in the retail and real estate sector of the regions it operates in. It currently offers 360-degree retail solutions in 23 malls in six countries, with several further properties planned for the future in new cities and markets.
Design & Development Mall of Um Al Quwain (Gold) Net Operating Income (NOI) Enhancement Al Wahda Mall for Celebrity Visit (Silver) Traditional Marketing: Cause-Related Marketing Al Wahda Mall for Operation Smile (Silver)
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SPECIAL FEATURE
Retail Real Estate User Engagement During “New Normalcy” to is disrupted. To remain viable, the challenges center not only around how well shopping centres respond to customer safety but rather how they continue to utilize the physical-digital-spatial sphere in facilitating wary customers. The picture on the right presents some key insights for shopping centres to elevate customer experience during this new normalcy. As a retail real estate placemaker, Propdea focuses on providing proactive and immediate-mobilizing solution models for clients to build resilience and reach their investment targets during these uncertain times. Fortunately, there are several tools and tactics available for shopping centre operators to engage with their users. Next, hear from Hyperin Inc. on how communication is key in nurturing both customer and tenant trust.
Tools of Engagement
T
he 2020 pandemic is predicted to have long-lasting effects on how we work, do business, and organize our everyday lives. The journey towards reopening got us reflecting: how does the retail real estate industry recover and evolve from here? One fundamental curiosity is how to respond to the transformed expectations of shopping centre users (i.e. tenants and customers). We identify this next chapter as “the new normalcy.” Returning to spend time at shopping centres has been a way for people to maintain some sense of normalcy. However, if lockdowns are forced to resume, digitally savvy customers will waste no time jumping on the e-commerce bandwagon again. Likewise, retailers continue to adopt new digital tools to attract shoppers. Tenants expect shopping center operators to diversify their digital practices and investin an omnichannel strategy to engage with customers and boost sales. Individual brands have demonstrated creative ways of exploiting their direct-to-customer strategies. While shopping center operators retreated to manage tenant-permanence and provide necessary safety measures for the pandemic-fatigued public. Shopping center-led innovations were hardly declared, if at all.
Re-mapping the customer journey Customer experience-centrism has been emphasized in retail real estate development for quite some time now. Under current circumstances, the customer journey retail real estate traditionally caters
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Spring 2020 highlighted the importance of empathy. The common realization was that investing in tenant communication and empathizing with their distress increases tenant engagement and commitment to the landlord. However, tens or hundreds of tenants per property understandably overload managers. Thus, appropriate tools to support this relationship are crucial. After a shift in marketing tone, the new normalcy pushes us to get back to more aggressive campaigning to keep customers engaged. How? First, participating tenants in campaign planning are advised, involving tenants’ input in designing customer journeys around them. Second, as campaigns now have shorter time windows to react, processes must be adjusted accordingly to enable quick and dynamic operations. Understanding the performance of campaigns requires agile and well-integrated reporting tools, observing sales revenue, OCR, and other key indicators. Reviewing the results with tenants is
also advised to further boost commitment. Landlords must prepare for shorter reporting cycles to stay updated with the day-to-day business of their tenants. Here, HyperIn tenant engagement tools are valuable companions. Emphasis on demonstrating safe shopping will stay on the agenda for months to become. Shopping centres have a pool of channels to innovate with such as websites, interactive screens on the floor level, and mobile applications. This physicaldigital-spatial interaction and experience scope offers a unique advantage for shopping centres in navigating against the growing e-commerce landscape.
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The ones that have been investing in their tenant communication processes have been able to deliver good results in tenant engagement.”
Anna Salo-Toyoki Business Designer, Propdea Oy – Researcher in User-Centered Marketplace Design at Aalto University, Finland
Propdea – Ideas for Profitable Properties Propdea Ltd. is your partner in retail property and city center development. We specialize in commercial planning, provide goal-oriented leasing, and transform development drivers and goals into feasible models of operation. Our process emphasizes user-centered thinking while managing the complexity and logic of the retail property investment sector. Visit www.propdea.fi
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The new normalcy benefits from solutions like HyperIn CONNECT in reconnecting the shopping centre customer journey touchpoints. The HyperIn CONNECT mobile application, website, and digital wayfinding solutions are your daily tools in communicating with customers and facilitating customer experience.
MANAGE. MONETIZE. CONNECT. hyper[in] brings a game-changing solution for people who MANAGE shopping malls. We provide all the tools for multi-channel communication, collaboration, and integration between you and your tenants. You can MONETIZE spaces to outside advertisers and marketers. You always have up-to-date information that you can use to CONNECT to consumers and understand them better. We are a Red Herring Top 100 Winner in recognition as one of the leading private technology and innovation companies.
Hannu Käki VP, Business Development HyperIn – Founder of PropTech Finland
Visit www.hyperin.com
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FEATURE
Partnering Through a Pandemic We have always backed the role physical space will play in the changing relationship between brands, their customers, and the buildings that connect them. Our optimism remains and our resilience allows us to help those we work with play their part in the reinvention of retail real estate.
W
Peter Row
Founding Director Vindico
hich comes first: resilience or optimism?
Does having the resilience to get through the eye of a storm earn you the right to be optimistic, or is optimism a cornerstone of resilience?
We each have a personal perspective pondering this question, for when life inevitably throws us challenges, our own answer will follow. But when an entire industry finds itself in the eye of that storm, finding a collective response becomes transformative. The Vindico team and many of our peers in the Middle East share a decade bookended by market shocks. In the aftermath of the 2009 global financial crisis, resilience preceded optimism through a period of surviving what felt like an existential test. In 2020, as the world wrestles an ongoing pandemic whilst transitioning beyond its economic impact, a seam of optimism has been there throughout. Seeing COVID-19 as an accelerant, rather than a change agent, underpins that optimism. Many facets of the digital and social disruption we have before us were already there. The reinvention of retail real estate that was underway is
Vindico has partnered with 3DWD, a global leader in 3D designed shopfront and hoarding activation.
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happening faster. So, now we see resilience translating into action - creativity, acceleration, focus and collaboration. What does resilient optimism look like for us? Partnership. With shopping centre projects in our DNA, we have looked across from Dubai to Mumbai watching the organised retail sector find its long-term footing. In August, we launched a partnership with ANAROCK Retail, part of India’s largest independent property services company, to serve Indian shopping centre and airport developers. What started as brand and distribution, extended into a product partnership as we understood how the agility now needed by our shared clients could come from integrated retail leasing and delivery. This month we partnered with 3DWD Creative Services, a global leader in 3D designed shopfront and hoardings specialising in vacancy management. Founder & CEO, Dion Pouw, sought a partner to better serve Middle East retail developers, managers, and brands. A deeper synergy emerged as post-COVID vacancy rates climbed, focus on customer experience sharpened, and our collective client base began to look at how every piece of the retail environment, including the humble hoarding, must make a positive contribution.
The Need for Recovery Action Planning in Retail Founded in 2005, Confiz is global technology services and solution company with Fortune 100 companies as its clients. The company, a certified Microsoft Gold ERP Partner, employs more than 400 individuals worldwide and has its offices in North America, the Middle East, with Global Delivery Center in Pakistan. For details visit www.confiz.com
MOHAMMED REZA
Head of Business Development Confiz Limited
Mohammed Reza is the Head of Business Development and leads the enterprise applications business for Confiz Limited in the Middle East.
R
While recovery is most likely to be gradual, another scenario could include a spike of demand as soon as the lockdown is completely lifted as buyers indulge in euphoric spending. Constant monitoring of incoming traffic in stores has now become crucial for decision making and adaptation. This is where the role of tech companies like Confiz comes into play.
At Confiz, we offer retailers customized services and solutions such as ERP and CRM solutions, real time in-store footfall analytics, industry benchmarking, and periodic measurement of performance metrics for their stores and staff, among many other.
etail brands across the world continue to experience decreased sales owing to the reduced traffic due to COVID-19. The businesses which in the pre-covid world used to strategize to increase profits are now forced to focus more on their cash reserves, managing liabilities and analysing liquidity ratios. To make things worse, uncertainty regarding the future is exacerbating the struggle faced by retailers. Strategizing and planning is now supposed to be based on an altered consumer behaviour and the definition of the new ‘normal’ would not be clear until the customers are fully back in stores again. Given this fact, retail business owners have already started preparing for recovery action plans for multiple future scenarios but the ones who haven’t, it’s high time that they start doing that already. The impact severity of the pandemic suggests that the retail space which we were present in before would not be the same in the short run. Exact forecasts of demand for brick-and-mortar stores might seem difficult to calculate at this point in time but what is more certain is the loss in consumer confidence. An example from China tells us that even if 90% of the apparel stores were re-opened, footfall and purchases had dropped by 50-60% from pre-corona levels.
With the pandemic changing how retailers operate, the need for IT solutions for managing their business functions showed a steep spike. Considering the needs of our potential and existing clients, during the days of smart lockdown, we offered them solutions tailored to their current needs through the provision of features like heat-mapping for their stores, optimal store placement, and measuring stores staff’s performance through our real-time data measurement tools. Being certified Microsoft Dynamics 365 Gold Partner, we helped retailers in multiple regions across the globe (Middle East, North America and Pakistan) operating on legacy technologies or using technology at a minimal level, transform the way their businesses operate. For example, Confiz is relatively new in the Middle East region. However, in a short span of nine to eleven months, we helped companies like Bani Yas Cooperative Society and ADCOOP with the implementation of Dynamics 365 ERP and CRM solutions. Although the adverse impact of Covid-19 has been contained with rigorous efforts of governments across the globe, but the pandemic has for sure altered the way we live our lives. With this changed consumer behaviour and shopping preferences, the businesses which will be quick to implement technology in the way they function would definitely have a better chance of survival and growth in the future.
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FEATURE
Reimagining the New Normal for Retail
T
he way we all are currently living and working Joelle Elias Manager, Retail Consulting differs vastly from MENA at JLL this time last year. Joseph Kerbaj At least a third of the Associate, Retail Consulting world’s population has MENA at JLL been impacted through lockdowns and quarantine. The full impact of the changes that have come about as part of the new normal remains to be seen. As the retail sector continues to be one of the hardest hit from the outbreak, retailers have been forced to revamp their business models to maintain cash flow and seek out opportunities to keep up with the rising market disruptions. For retailers, the primary focus in the short term remains on preserving cash. A rising number of retailers and leisure operators are assessing options to offset the loss of revenue from their physical store portfolios. For example, proactive gym operators are offering subscription services to stream online workout sessions while high-end restaurants are offering meals for delivery or collection, and others have turned eateries into mini supermarkets. Social responsibility too is being closely monitored by all, especially as more time is spent online. In addition to generous donations and the manufacturing of masks and hand-sanitisers, various cosmetics and luxury brands have embraced live streaming for sharing make-up and fashion tips. The changes adapted during the year have altered retailers’ long-term objectives to safely target a wider market by embracing technology. In the current environment as the structural change in the retail market accelerates, greater emphasis will be placed on the shift toward a flexible omni-channel retail model and sustainable fulfillment. ‘Retail beyond Covid-19’ can be captured through five key pillars that we expect are here to stay:
Digitally Adapting The online shopping surge, sparked by the outbreak, is continuing to change consumer habits. Along with all other pressures on profits, such as price competition, traffic declines, inventory overages, and increased cost of running a business due to increased safety measures, the quick pivot to digital is adding its own pressures. What we are witnessing is increased e-commerce integration as part of which virtual online platforms are being set up to support the wider community. As part of this integration, customers are now able to visit the stores and shop virtually and have items delivered straight to their homes. The “New Normal” Some of the implications of COVID-19 have created a need within retailers, both start-ups and franchise, to promptly embrace technological implementations which are here to stay, such as contactless payments, convenience, and self-service, to name a few. These changes reflect embedded costs to retailers remodeling their structure to account for a lower margin for error. The new normal also reflect the consequences of a recessionary economy driving shoppers to off-price stores and essential items. The Battle by Category The performance of retail has been dependent on the specific category. For example, the grocery industry has peaked in 2020, with growth expected to decline in 2021, as part of a correction and stabilization post-pandemic. Meanwhile, other retail categories are expected to witness a correction of growth as consumers adapt to the new normal, and operators customize their offering accordingly. Space Redefinition The recovery from the closure period has been uneven and is based on the location of a retailer. Brands are increasingly aware of the impact of their
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physical portfolio and are adapting to changes by re-assessing existing locations and exploring newer formats, such as drive-throughs, fulfillment centres, and kiosks. In addition, with prolonged uncertainty of the performance of brands, comes the increased scrutiny on sales-to-rent ratios and a more conservative approach on investments in brick and mortar. Pop up Power Short term stores are set to thrive going forward as retailers will look to tap into pop-up markets to reduce their rental liability. We expect to see an emergence of pop up stores occupying vacant spaces within developments, activating the mix and fulfilling both operators’ and developers’ requirements for a new offering to attract additional footfall. The region has already witnessed pop-up drive-in movie theatres and pop-up socially distanced restaurants, considered as a new well-adapted feature to the industry, and we expect this trend to only continue. As a result, many retail assets are therefore being earmarked for alternative uses, where “excessive” retail space may be considered to be re-purposed for other activities. Given the challenges and many changes that have come about as a result of the current environment, the need of the hour is for retailers to rethink their operations and supply chains. Having the right infrastructure for the fulfillment of online orders will be crucial for trading, which means existing store networks will need to be reassessed. The long-term success of retailers will depend on the ability to adapt and deliver quickly and
the effectiveness of engaging with the right target audience.
Joseph has extensive retail experience in the region specifically in the UAE and KSA markets, his primary role is to undertake a wide variety of strategic and development advisory for numerous types of developments and local, regional, and international retail, F&B, and entertainment operators. Joelle provides real estate advice to developers, retailers, and investors across the Middle-East and North Africa region, to date she has advised on numerous developments across more than eight countries within the GCC and Levant area delivering strategic retail expertise.
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FEATURE
Insights on Resilience and Optimism
I
Ishwar Chugani
CEO and Managing Director GIORDANO MIDDLE EAST
would like to take this opportunity to say hello to all my industry friends and colleagues. Thank you to the entire MECS+R team for inviting me to share my own personal experiences and insights during this interesting time.
A few days after the lockdown, I came across a quote that changed my entire perspective – “We cannot control what is happening, but we can control the way we respond to what is happening.” With this in mind, we put all our energy and focus to ensure our team at Giordano and their families were all well. We kept our employees informed on how we as a company were handling the situation and what we were doing for them. We wanted them to know that we were available to them at any time during this challenging and unpredictable time. We engaged with them consistently and encouraged them to be part of the company decision-making process. Companies who take proactive steps and have the flexibility to respond to the market changes are less affected than those who take their time or do nothing at all. Covid19 has taught us the importance of shredding complexity in anything and everything to allow for faster decision-making. This allows us to be more nimble and flexible. In times like these, we have to be able to bend with the situation, and not snap against it. We noticed a dramatic shift in how people work, dress up, shop, and socialize after staying at home for a period of time and having to comply with the health and safety protocols during the pandemic. And so, we as a retailer also had to adapt to our consumers’ lifestyle changes - for example, the rising demand in comfort wear for ‘at-home’ time and a preference for contactless or cashless transactions. Some industries especially fashion like
us have to now focus more on seasonless stock – embracing the classic ‘Less Is More’ approach. Consumers today expect more honesty and transparency from brands and businesses. Health and Hygiene are taking precedence and consumers are keen to know how brands are managing that end to end. We have also had to rethink our supply chain to bring in more flexibility. After careful review, we have reduced our options and numbers of SKU’s, as many of the items that were good sellers before may no longer be moving as they were. Investment in Digital Innovation and our online business will be a priority across all levels. We learned so much from this pandemic that we were able to accomplish many positive changes, technology-wise, in a few weeks that might otherwise have taken us years.
Going forward, a key area to look at would be how to improve the ways our team members can work remotely and how we can enhance contactless solutions and payment methods in our stores - we are seeking more innovative ways to reach out to our customers, remotely and virtually, to enable them to continue shopping with us. The GCC region has all the ingredients to support the growing retail market. We are fortunate to be located in a very resilient and dynamic market. The GCC’s geographical location, especially the UAE as an international hub, will always be an asset and the continuous influx of regional and international tourism will keep feeding the growth. When situations change, you have to rethink current strategies and build on the strengths that have served you well in the past. With this in mind, retailers need to decide what they are good at and what they stand for and then make sure that every aspect of their operation reflects that proposition. In the past, it was all about becoming a bigger retailer and most major brands wanted to have bigger stores and more square feet than other retailers. With the rise of the e-commerce giants, the mindset has changed. Today, profit growth can come from contraction – closing unprofitable stores and pulling out of poorly performing business areas.
RETAIL PEOPLE . OCT-DEC 2020 .28
Retailers will have to continuously look for more innovative approaches to training and staff development to adapt to the evolving retail landscape. To be a salesperson is not enough – retail employees are ambassadors to the brand and integrate to the human experience. And shopping is all about relationships. Today’s customers rarely buy from a company, they buy from a person, a person they trust, a person that is knowledgeable, and a person that delivers what is promised.
As retailers, we need to go back to basics to make shopping enjoyable and make sure factors such as customer service, health and safety, price point, technology integration are taken care of so that a customer’s in-store experience is as seamless as possible. Today’s customers expect no less. A company’s culture is the ultimate competitive advantage. Competitors can steal your products or services or even key employees. However, they cannot steal a great company culture. In my over 40 years in retail, I have learned that the key to survival is not assets, not funds, not systems, not processes but PEOPLE and their ATTITUDES. To continually exceed customer expectations, brands must ensure that customer interaction are rooted in empathy, engagement, and emotional intelligence areas that have not been talked about enough. The retailers that will survive and thrive are those that understand their customers – and know what services they will value in-store. There is no single magic formula that works for all retailers. The way forward for retailers is to understand the critical importance of connecting with consumers. The future of retail will be built around the experience economy, where what you sell is less important than how you sell it. Forget about product differentiation – the future of retail will be all about distinct experiences – create one, and you will establish a long-term relationship with your customers.
Ishwar Chugani receiving the Retail Professional Award at the 2019 Retail Congress MENA
I end my talk with a quote from Steve Jobs – “Get closer to your customers. So close that you tell them what they need well before they realize it themselves.”
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FEATURE
THE CUSTOMER JOURNEY HAS CHANGED
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ell, the last few months have been a frantic roller coaster ride for the entire globe with brands going in a frenzy, having no or little control to salvage Kabir M. Malkani their sales as the pandemic has Assistant GM – Marketing created a large vacuum in generating Shopping Malls LALS Group any sort of remuneration. With the complete disruption in sales due to the restrictions in movement; business heads, sales teams, and marketers are trying to find an acceptable equilibrium in sales by continuously devising new strategies to reclaim their almost lost trade. A key factor that will aid organizations to recoup from this unexpected and indefinite situation lies in deciphering and understanding the NEW CUSTOMER JOURNEY and identifying what alterations will comply with the new normal and reduce customer friction. Will the customer journey continue to change? That depends on how soon the vaccine is created and manufactured for use in the market and also on the ease of movements and health and safety provisions. Customer civic sense will play an important role in seizing this change. The longer it takes for the vaccine, the stronger will be the new habits etched into customers’ minds. Customer preferences are not, and never have been, singular. They solely shop as per their comfort and convenience. What captivates and
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entices them is not only the in-store experience but the ease of the route laid down to reach the product. How well the route is laid will define whether the customer continues to embrace the brand beyond the pandemic. Hence, companies must ascertain and determine where and how they can connect with their loyal customers during this period in ways that are most suitable to them. Here, Omnichannel marketing will play a key role in achieving this memorable experience, and this is attainable only through the existence of a retail store! Though the role of the store will change!
What truly makes for a good experience? Speed. Convenience. Consistency. Friendliness. And one big connector: human touch—that is, creating real connections by making technology feel more human and giving employees what they need to create better customer experiences. Source: pwc.com/future-of-cx
Customer experience is the new battlefield! 86% of customers are willing to pay more for a better experience! source: research by American Express
Companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience. a study by Temkin Group
Customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience. source: pwc.com/future-of-cx
There will always be a human aspect to commerce, and that means there will always be a demand and urge for brick-and-mortar. Human is a social being, he needs to connect with friends, go out for coffee, make physical purchases, visit the mall – online shopping doesn’t allow this human interface and connection. IKEA is the best example of an instore experience which garnered large queues outside their stores on the days following the relaxation of lockdown measures. Ideally, people will always want a face to face interface especially when they want to purchase products like electronics, laptops, mobiles and TVs. People like to shop in person for products that require some understanding of technical aspects, price comparatives, detailed specs, availability of various models and certain colors. While a customer may get competitive pricing from online sites, they would still like to evaluate and validate the product physically. If physical stores cease to exist, then this offline – online interaction and integration of client and sales
providers will fade away to oblivion. Brick-and-mortar is here to stay, though, they may need to innovate and strategize themselves differently to sustain and survive after the pandemic. There must be an amalgamation of physical and online stores. In the west, brick-and-mortar retail has started to implement a ‘web-rooming’ or ‘showrooming’ approach. Retailers advertise only those products online which are available in the stores so customers can view and select the product via online sites but need to visit the stores to purchase the product. This union will be very beneficial for both online and retail platforms. Will Brand building still be necessary? – Definitely yes. Due to the emergence of numerous online platforms majority of brands are trying to establish themselves in this upcoming online arena; and there has been a huge paradigm shift in the customer mindset and hence brands due to COVID19. Therefore, brand building and visibility are crucial for brands if they wish to make a lasting impact on new customers. Simultaneously, they also need to focus their efforts on retaining their loyal customers as they are vital for the success of any business. The industry now needs visionaries who can propel and reinvigorate bricks-and-mortar retail back in the business and create a mark for themselves for the imminent future.
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FEATURE
The New Normal – Luxury Resale Ritesh Mohan is a passionate retail professional with over 22 years in the Retail sector, handling some of the biggest brands in the beauty, fashion, and fragrances retail and FMCG sector. He is also known as #retailritesh.
O
Ritesh Mohan
Retail Expert www.retailritesh.com
ne of the aftermaths of any economic slowdown is the emergence of new brands that offer value for money proposition and it is even applicable to the luxury brands.
Traditionally, Luxury brands remain insulated from any kind of economic and recessionary pressures but the slowdown gives rise to a new kind of luxury retail called “Preloved Luxury” Goods, Second-Hand Luxury or Pre-owned Luxury Retailing. Let’s decode the market for Pre-loved luxury goods.
How big is the market of Pre-loved luxury goods? The global pre-owned luxury goods market accounted for USD 27,353.6 million in 2018 and is estimated to reach a notable in 2024, registering a compound annual growth rate (CAGR) of 12% between 2019 and 2024. (Source- kdmarketinsights.com)
Why this sector is in the limelight or what’s fueling growth into this sector? To answer the above, we need to understand the evolution of the target audience or target customers. Earlier the segmented customers for any luxury brands were affluent connoisseurs, industrialists, and businessmen, who appreciated the finer things in their life.
Trust and authenticity - The core of Pre-loved Luxury During the research for this article, I stumbled upon a concept called Rebag, a platform exclusively for selling and buying preowned designer handbags. The platform offers a resale experience with a seller-first mindset that is all about immediacy and transparency. Rebag purchases the bags outright at fair market value, which are calculated by their highly-trained buying personnel. Sellers simply upload a few pictures to get a free quote and receive a payment within 2-3 days of Rebag evaluating and approving the items. Buyers of pre-owned bags can feel safe knowing that they’re getting authentic designer goods at attractive prices. Creating an Ecosystem for pre-loved luxury
Customer who already owns a luxury product
Buys another luxury good
sells the product
First time Luxury Customer aspirant satisfies its craving The first customer gets confidence in the liquidity offered by luxury goods
With the rise in the disposal incomes and rise in the aspirations of tech-savvy, successful entrepreneurs who are not only striving to make their presence felt but also striving to fulfill their aspirations for luxury goods and brands.
The seller of luxury goods gets more conviction that their luxury goods are liquid and they end up purchasing more luxury goods.
According to the GCC statistical center, Saudi Arabia captured around 57.7% of the disposable income in the GCC and is followed by the United Arab Emirates with a percentage of 28.5.
As per the research done by ThredUp, Millennials and Gen Z are adopting second-hand fashion 2.5 times faster than other age groups.
Luxury fashion becoming more affordable and accessible
Hence pre-owned or pre-loved luxury goods are creating their own channel of customer acquisition by attracting first-time younger consumers.
Pre-owned luxury goods are the ideal choice for high-end fashion as they offer luxury goods at lesser prices. The world of pre-owned luxury goods is segmented by products into five categories: Clothing, footwear, bags, jewelry & watches, and accessories.
Diminishing fear of the fake and the rise of authenticity As technology diminishes the fear of fake luxury or counterfeit luxury goods & with the advent of stringent local laws on counterfeit goods; the segment is witnessing a growth in a number of new startups in the field of pre-owned luxury goods. Firms like Farfetch and our homegrown, The Luxury Closet, are making their mark on the pre-loved luxury goods. It is opening a gateway of opportunity for the market to grow in the upcoming years.
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Shining star – Pre loved luxury segment
FEATURE
Getting UAE Healthier with Let’s Organic
T
he recent addition to Dubai’s culinary ensemble is the 100% organic restaurant & café, “Let’s Organic”, the homegrown brand uses handpicked ingredients and produce from farms in the Ahmed Mohammad Abdulla UAE & globally. The “Let’s Organic Alqaz Alfalasi Chairman Restaurant & Café” is located in the Organic Farms & Let’s Organic heart of Dubai at Al Ferdous Complex in Jumeirah serving the tantalizing Mediterranean and Italian cuisine. One of the highlights of this restaurant is also its traditional cooking methods, there are specialized firewood ovens to bake the pizzas, and the cookware is also made of natural materials, which offers an exceptional taste to all of the dishes served. The menu has an extensive offering of fresh and healthy salads and nutrition-rich smoothies; including a special kids’ menu catering to the young ones. The selection of dishes also offers a variety of gluten-free and vegan options; ensuring there is something for everyone at Let’s Organic. Let’s Organic Restaurant & Café is the brainchild of Ahmed Mohammad Abdulla Alqaz Alfalasi, Chairman of Organic Farms & Let’s Organic and Mohamed Sohel Ellikka, Managing Director, Let’s Organic. Their efforts began with the opening of the 5,000 sq ft Let’s Organic Store in December 2019. They managed to make this a unique venture by connecting with over 50,000 marginal farmers directly and through partner organizations, farmers group, self-help groups and NGO’s internationally. They believe that the basic need of people is to have access to good and healthy food. Harmful chemicals and pollutants are taking a toll on people’s health and the human body is not designed to
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digest food loaded with additives and chemicals. Let’s Organic works closely with the UAE government and embraces ethical and sustainable practices whilst supporting local farmers and producers offering customers a wide variety of organic products from farm to home; in his continued determination to create an organic community in his home country of UAE; Mr. Alfalasi is now launched the 100% “Let’s Organic Restaurant & Café.” Some of the benefits of organic food
Organics keep GMOs out of our food
No pesticides used
No artificial preservatives and flavors
No antibiotics and hormones
More flavorful
Stronger immune system
More nutrition for your family
It supports local farm and farmers
Help reduce pollutions
It also saves energy and protects save the earth
The team’s vision is to provide a global platform for an organic lifestyle accessible to every person in the GCC by 2022 and educate consumers on the benefits of adopting an organic lifestyle, offering healthy alternatives for children by supplying compromise-free products, providing affordable high-quality organic products, using only recycled and bio-degradable packaging within a waste-free supply and to engage in CSR initiatives for a brighter and sustainable future.
Aspire Expands Now Available for Middle East Clients Yardi Aspire, a dynamic on-demand learning management platform is now available to Yardi clients in the Middle East.
Y
ardi Aspire, formerly known as Yardi eLearning, offers online courses and live webinars in areas ranging from software skills and compliance to company policies and custom career development. Said Haider By hosting all of an organization’s Regional Sales Director – Middle East training-related course content and Yardi documents in a centralized platform, Aspire reduces the time needed to create, maintain, and administer courses. Automated reporting functionality tracks learning progress and organizational trends. Recognizing the critical need for virtual training and the unique challenges faced by learners who are practicing social distancing, the Yardi Middle East support team and the Yardi Aspire team have worked to deliver creative learning options developed specifically for our clients in the Middle East. We’ve packaged the training style and product expertise of Yardi’s Middle East software support team into interactive, mobilefriendly courses in the Yardi Aspire Learning Management Solution. We are excited to announce the release of a new Middle East collection of online learning courses that ready to be delivered directly to you and your employees. We’ve taken the liberty of bundling our courses into role-specific learning plans that deliver effective training to the right individuals. “Aspire offers property managers a budget-friendly way to establish an immersive, intuitive training program very quickly and easily,” according to Said Haider, Regional Sales Director - Middle East Yardi. “The platform’s role-based learning plans put the right topics in the right hands. The convenience and efficiency of Aspire advance employee career development and therefore organizational success.”
This new partnership was conceived with one specific goal in mind - to assist clients like you with essential software training during a time when live classroom training is simply not an option. This is just one of many ways that friends at Yardi are working together for you.
You now have two options for accessing the Middle East course collection. If you want to create and administer your own training program, contact your Yardi sales representative to license the Aspire Learning Management solution. If you want to leave the administration to us and receive free access to the courses for a limited time, contact your Support representative to request student access for your employees in the Yardi Training Middle East University. All courses in the Middle East collection are made available, free of charge through December 31, 2020, to all learners enrolled in the Yardi Middle East Training University. Contact your Yardi representative to secure accounts for your team to start learning today! Yardi is offering a series of special online learning opportunities that help Yardi clients in the Middle East operate efficiently in a social distancing environment.
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FEATURE
Now: The Best Time for TRANSFORMATION The Value of Happiness is measured in time and such times spent feeling happy are those we do not and would never regret.
W
e surely have lost some precious time to enjoy the current challenges we are facing, but it does not mean that we are not looking forward to a joyful and delightful experience. While GASTON GAITAN the world is staying safe and nears Founder to a full recovery, where safety and theleisureway comfort will be evident, the excitement constantly rises. We all cannot wait for that day we can go out with no fear or question of “Is it safe?” But rather, just pure intention of adding wonderful moments to be remembered and shared, to have a new set of experiences hanging out with good friends and family, to let our kids play freely, and enjoy all our favorite leisure activities.
This is the best time for a great transformation We, theleisureway, are taking this phase to prepare and develop a more ambitious and inspirational leisure world for everyone. We see this stage as an opportunity presented to provide a better and more fun environment to foster a greater journey not just only to experience, but also, to be remembered. Now is the perfect time to prepare and develop more magical and majestic places and experiences for shopping malls, or any kind of real estate developments, so they could provide what the customers deserve and demand. People desires not just a safe place, but also, innovative places in the future where they could spend time with friends and family to create more and more special memories.
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theleisureway did not stop imagining new ideas to help our clients. We are always more than ready to partner and work with our clients in any field of real estate in creating a much better environment for customers and consumers, and together, achieve a faster and easier recovery. Achieving something that has not even been done before. Let the positivity live through; believe that this will be over before we even know it and remember, new great, and amazing leisure places await us.
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7/25/17 2:35 PM
Circulated in 45 Countries
ISSUE 23 | APRIL – JUNE 2020
MAG AZIN E
A FAMILY BUSINESS Featuring Rachel Walton Founder and Partner of Pop Retail and Upscale Retail Chelsea Lauren Walsh Retail Development Manager of Pop Retail and Upscale Retail
+SPECIAL REPORT: COVID-19 IMPACT on Retail P.16: What Makes a Family-Owned Business Last
Magazine Curated By:
P.28: Retail Development Industry Post COVID-19 Thoughts P.40: MALL OF DILMUNIA – Keeping it Colorful
Retail People Magazine is for all members of the retail world. The MECS+R wants Retail People to be the foremost source of knowledge information for the retail industry, where MECS+R members can have an active voice in the activities of our organization. With readership in over 45 countries, we are continuously creating a voice in the MENA region. Bringing the best in every retailers and raising their profiles at the optimum level.
RPM is indeed one of the best initiatives by MECS+R and it’s so enriching to be associated to it both as an audience and as a contributor. And it has so much more coming. All we need to do is Stay Tuned.
– Juby Jose
Head of Marketing & Specialty Leasing Dalma Mall, Abu Dhabi, UAE
Retail People Magazine keeps the readers updated on where is the industry is heading, so your business can cope with the trends, and participating in articles, which I love to do here, will keep the community aware of your profile and involvement in the industry.
– Eng. Wail Balkhair
Chief Operating Officer Jabal Omar Development Company Jeddah, Saudi Arabia
FOR ADVERTISING & FEATURED ARTICLE INQUIRIES T: +971 4 516 3061 / +971 56 548 1380
FEATURED MEMBER
One-on-One with… Fahad Al Othaim is the Chairman of Abdullah Al Othaim Investment Company. He is successfully managing diverse world-class shopping malls and leisure portfolios including huge expansion leisure projects within the Kingdom of Saudi Arabia, GCC area, as well as Egypt and Africa. Fahad led these companies through start-up, survival, turnaround, and growth modes. Currently, he is leading 7,000+ multinational employees in the group with revenues of over 8 billion SAR. The Retail People Magazine had a quick cozy chat with Fahad who is a longtime member and supporter of the Middle East Council of Shopping Centres & Retailers. 1. Share a brief background about yourself. I’m Fahad Al Othaim, Chairman of Abdullah Al Othaim Investment Company. After my graduation in Riyadh, Saudi Arabia, I went to the United States for higher studies and pursue a degree in Shopping Malls and Retail Management. Upon successful completion of my study, I joined the Al Othaim Group and am continuously developing world-class shopping malls in the region. I always believe especially for shopping malls and leisure industries that “there is indeed a better tomorrow ahead.” 2. Did you choose your profession or did it choose you? While completing the higher education, I knew that I have to join the family business and develop it further; which is usually a tradition in the Kingdom of Saudi Arabia and that is how in a way the business chose me. 3. What originally got you interested in your current field of work? Being raised in a business environment got me fascinated about retail. And it is great to see how retail has evolved and transformed over a period of time. 4. What career advice would you give to your younger self? My advice to my younger self would be to follow the same path which I had followed; going hand in hand with the values of the business and family and it is great to see my brothers following the same career path and become part of the family business as Board of Directors. Full Name:
Fahad Abdullah S Al Othaim
Short Name:
Fahad Al Othaim
Nationality:
Saudi
Job Title:
Chairman
In the current situation, the lesson experienced is to implement crisis management key decisions to optimize the business. One must be persistent in his approach while being dynamic and being adaptive to the trends and requirements of the market.
Company Name: Abdullah Al Othaim Investment Company Birthday:
21 August 1979
Hobbies:
Practicing different types of sports and reading
Education:
Retail Management
Life’s Quote:
“
There is indeed a better tomorrow ahead.
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5. In our current situation right now, what is the lesson learned you may consider?
"
6. Being a long-time member of the MECS+R for the past 17 years, how does it benefit you? Being a long-time member of MECS+R has been a fruitful journey. It certainly benefits in networking and is a great platform to share knowledge and best practices in the industry and to keep with the current trends across different verticals of retail. 7. What is your passion in life and what inspires you? My inspiration is my father, Abdullah Al Othaim. He is my mentor whom I look up to; from getting involved at the early stages of business; to having business transformed into a conglomerate. My passion in life is to create unforgettable experiences for our customers and to grow the business exponentially; paving a way for future generations to take it to new heights. The success of Fahad has been so pronounced in the past one decade primarily due to his dedication and commitments towards achieving the short-term and long-term goals and his efforts to give the best in shopping malls and the leisure and entertainment industry.
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