Top Retail Trends in the Middle East Region

Mr. Duaij Khalifa Al Rumaihi is the Mall Director for City Centre Bahrain, the leading shopping and lifestyle destination in the Kingdom of Bahrain. In this role, Duaij oversees the mall’s management team to ensure visitors have memorable experiences when visiting the mall and that strategic partnerships are established with retailers, contractors, third party suppliers, and local authorities.

DUAIJ AL RUMAIHI

Mall Director CITY CENTRE BAHRAIN MECS+R BOARD MEMBER

From the pandemic to supply chain bottlenecks, the retail industry has had its share of challenges in recent months. That is why digital transformation is more important than ever. Those retailers that build a secure, flexible, and app-centric network infrastructure are in position to adapt to the changes, whatever they may be. But retail today is not just about weathering challenges. It is about creating exciting new experiences for customers. Experiences that are seamless and fast whether in-store, at home, or on a mobile device. When we look back, the trends from offline to online retail were already visible. But the pandemic accelerated everything. We know that retail brands are ever-evolving, consumer preferences are shifting, and at City Centre Bahrain, we are adapting to the next wave of digital transformation. Fully in line with this trend, Majid Al Futtaim has a strong vision on the malls of the future. In the Middle East, online retail still accounts for a smaller share of the market, at an estimated 2-3% compared with 1015% in western economies. However, the demand for online retail is growing quickly. The Middle East is home to the youngest population in the world, with 60% of the region’s population aged under 30. With a high youth population and an interconnected region, the Middle East population spends the most time on social media networks.

The Covid-19 pandemic has also transformed the way we live our lives, with users in Middle East reporting that they have been spending even more time on social media. Extensive lockdowns have led to changing consumer patterns and a shift to online channels for various activities such as shopping, learning, and socialising. We are seeing consumers focus on online shopping for their groceries, personal care products, and household supplies.

In Bahrain, consumers have adapted to changing patterns during the pandemic, as various factors such as price, location and in-store convenience affect decisions. Consumers increasingly value local suppliers, supporting the local community and value brands that are more locally relevant. Retail brands need to show their commitment to the local community and align their supply chains to the growing trend of a desire for localness.

At City Centre Bahrain, we ensure the brands we work with continue to maintain our customers’ interests. We also engage in community activities – our most recent one in Ramadan is an art competition with local schools. We told children to submit artwork under the theme of “What makes you smile?” during the holy month to encourage acts of kindness. We pride ourselves as an enabler of gathering the local community to create valuable memories and participate in important campaigns. As consumer patterns are constantly changing, we are closely monitoring the market to implement best practices and stay in line with regional trends. We launched our first Majid Al Futtaim self-digital redemption kiosks earlier this year, allowing customers to redeem their receipts and enter draws via tablets that have been installed within the mall instead of queuing at the physical redemption desks. We have also transformed our paper transactions into electronics, resulting in faster transactions.

Entering a post-pandemic world, we envision a transformative retail sector in Bahrain and the region. We have witnessed a rise in mall visitors since 2022, due to the ease of COVID-19 restrictions and the opening of the King Fahd Causeway – an important source of mall visitors from neighbouring Saudi Arabia. We are confident that we will continue to adapt to changing patterns and maintain visitor levels pre-Covid. So, what does the future hold for the retail sector? Virtual experiences are increasingly becoming a priority for consumers they are getting more comfortable buying products virtually. Majid Al Futtaim recently launched the Store of the Future in Mall of the Emirates in the UAE, a concept that allows customers to interact with the fully digital concept store, showcasing a futuristic shopping journey. This personalised experience offers a glimpse into how the retail industry in the region is shifting. Innovations like AI and machine learning can be implemented to benefit the retail sector in ways that increase efficiency and contain interconnected data. IDC researchers said that within two years, 40% of top retailers will use AI-enabled decisions to drive improvements in retail including customer lifetime value, productivity, and profitability. Omnichannel tools are creating more meaningful shopping experiences, and the importance of consistency across online shopping and the instore experience is very valuable to customers. Customer’s value same day delivery and in-store pickup, features that we have implemented during and post-pandemic. Sustainability will also be a major factor in retail within the coming years. Forrester researchers predict that between one-fifth and up to half of the online consumers ranked environmental responsibility among the top reasons for buying products. At City Centre Bahrain, we ensure that the brands we interact with are implementing sustainability values and are in line with Bahrain’s agenda to achieve netzero emissions by 2060. We are constantly looking for ways to enhance our customers’ experience, connect with the local community and support local talent. We are proud to be Bahrain’s destination for unique shopping experiences and to create valuable memories. In line with Bahrain’s digital transformation journey and with the available digital infrastructure, we are continuing on a pathway to modernise the retail sector and revive its growth.