SEAMLESS SYNERGY: BALANCING TECHNOLOGY AND HUMAN CONNECTION IN MENA’S RETAIL REVOLUTION

The Middle East and North Africa (MENA) region has always been known for its rich cultural heritage and vibrant fashion scene; however, with the rapid advancement of technology, the region is undergoing a profound transformation in the way people shop, communicate, and express themselves. From e-commerce, VR and AR to automation and social media, the influence of technology on fashion and lifestyle in the region is undeniable. With this seismic shift, it’s imperative to remember that the human touch remains invaluable and preserving the essence of human connection while harnessing the potential of technology is essential for a thriving retail industry that prioritises customer experience and satisfaction. At Majid Al Futtaim Lifestyle, our commitment to striking the right balance has yielded remarkable results, with our online sales doubling over the past year.

Fahed Ghanim Chief Executive Officer Majid Al Futtaim Lifestyle

E-commerce platforms emerged as a game-changer in the early 2000s, and it comes as no surprise that it quickly became an essential method of shopping, given our young and tech-savvy population. Moreover, VR and AR technologies have taken online shopping experiences to new heights, with virtual try-on services not only enhancing customer satisfaction but also reducing the rate of return - a win-win for shoppers and retailers alike.

Automation technologies have also revolutionised retail operations. Selfcheckout systems, automated warehouses, and inventory management software have streamlined processes and enhanced operational efficiency while the integration of AI is allowing for deeper analysis of vast amounts of data to predict trends and personalise recommendations.

Fahed Ghanim is the CEO of Majid Al Futtaim Lifestyle which includes more than 65 stores and 18 digital platforms across the MENA region. Majid Al Futtaim Lifestyle holds exclusive licensing rights across the region for Lululemon, LEGO, Abercrombie & Fitch, Hollister, AllSaints, Crate and Barrel, CB2, Poltrona Frau, Ceccotti, Shiseido and THAT, a Majid Al Futtaim Lifestyle multi-brand concept store and app.

Majid Al Futtaim Lifestyle’s Digital Transformation Journey

Since embarking on our transformation journey five years ago, Majid Al Futtaim Lifestyle has invested in cutting-edge digital infrastructure to enhance customer experiences and operational efficiency. In 2022, we increased our online presence to 18 platforms and strengthened our advanced analytics team to support our network of 65 stores across the region to deliver a seamless, unique and personalised omnichannel journey for our customers.

THAT Concept Store, our multi-brand homegrown concept, continues to raise the bar with its digital innovations, becoming the first retailer to take over the Store of the Future in Mall of the Emirates with its immersive Digital Display Canvas, Magic Mirror, Beauty Mirror and Store Analytics, transforming the way customers interact with the store.

In 2022, Majid Al Futtaim Lifestyle launched a dedicated e-commerce platform for lululemon, which will propel the brand’s growth beyond its remarkable 10X expansion achieved within the last three years in the region. Our online sales have doubled since last year across all brands and contributed to more than 20% of our total revenue for our Home category, which includes brands such as Crate and Barrel and CB2. We anticipate that upward trend to continue as we further invest and innovate our platforms and supporting technologies.

In terms of automation, we invested in planning tools to automate repetitive tasks, deploying 30+ RPAs (Robotic Process Automation) so employees can focus on insights and areas that require human ingenuity and problem-solving, as well as assortment forecasting to avoid personal biased decisions and mitigate stock issues. These two innovative measures have not only improved operational efficiency but we also project a minimum 3% uplift in revenue as a result.

As we continue on this digital transformation journey and automation becomes more prevalent, it is incumbent upon us as retailers to invest in upskilling programs to empower employees. At Majid Al Futtaim Lifestyle, we have wholeheartedly embraced this commitment to continuous development for every level of staff, so we can drive sustainable success in the evolving retail landscape.

Striking the Right Balance

As Majid Al Futtaim Lifestyle continues to innovate, we never lose sight of the power of human interaction in retail. Retail frontliners possess the unique ability to build personal connections with our customers and these interactions create a sense of trust, foster loyalty, and contribute to the longevity of customer relationships. We take great pride in our Net Promoter Score of 71.0 across our stores in MENA, a true testament to our unwavering dedication to customer satisfaction. No algorithm or machine can replicate the warmth and empathy that comes from human interaction. It is this aspect that sets the retail experience apart from online shopping, making it a vital component of the industry’s success.

Since embarking on our digital transformation journey in 2018, Majid Al Futtaim has quadrupled in size, achieving a record 38% growth in like-for-like revenue in 2022. We plan to continue on our growth trajectory as we foster lasting connections with our customers and deliver exceptional experiences at every touchpoint. In an ever-evolving retail landscape, our continuous innovation, focus on customer centricity and employee empowerment ensures the company’s relevance, adaptability, and ability to cater to the dynamic needs of today’s customers.