ISSUE 10 FEB/MAR 2017
CIRCUL ATED I N 45 COUNTRIES
Featuring
Mr. Kamel Shaban
of Brands International
Talks About Revolutionizing Men's Fashion
Al Maryah Central Next Generation Mall in the Heart of Abu Dhabi
Al Nassma Chocolate Conquering the World of Confectionery
Fashion and Lifestyle EVENTS
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NETWORKING
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BUSINESS DEVELOPMENT
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E D U C AT I O N
ABU DHABI’S
Next Generation Mall Opening in 2018, Al Maryah Central showcases a cosmopolitan lifestyle that embodies the sophistication of a big city. Located in the heart of the capital, it features iconic retail, with the first Macy’s outside of the USA, Abu Dhabi’s first Bloomingdale’s, The Galleria and over 500 shopping and dining options. To find out more about Abu Dhabi’s exciting new mixed-use retail development, see page 8 and 9. www.almaryahcentral.ae
CONTENTS 04
12
28
WELCOME MESSAGE
THE TRANSFORMATION OF KSA’S RETAIL SECTOR by Khalid Suleiman Aljasser
ONE DAY. A MILLION SMILES. RETAIL EMPLOYEES’ DAY by Ameesha Prabhu
06 BRANDS REVOLUTIONIZING MEN’S FASHION by Kamel Shaban
14 RECON MENA 2016 HIGHLIGHTS – THE CUSTOMER AND INNOVATION
29 08 DELIVERING SOMETHING EXTRAORDINARY IN THE HEART OF ABU DHABI by Daniel Parry
20 HOW TO ATTRACT THE BEST TALENT by Rahul Suri
AL NASSMA CAMEL MILK CHOCOLATE – ADDING EXCITEMENT TO THE WORLD OF CONFECTIONERY by Patrick Dorais
24 10 NEXTGEN EVENT IN JEDDAH
PROFITS ARE HIDING IN PLAIN SIGHT! by Shah Karim
32 MECSC BOARD MEMBER’S CORNER Featuring: Marwan Eskandarani & Maimunah Shebani
Disclaimer: The viewpoints, articles and opinions contained in the Retail People Magazine are not necessarily those of the MECSC or ICSC. Retail People | 3
WELCOME
Middle East Council of Shopping Centres 803, BurJuman Business Tower PO Box 43972, Dubai, UAE Tel: +971 4 359 7909 Fax: +971 4 355 8818 www.mecsc.org David Macadam CHIEF EXECUTIVE OFFICER DAVID@MECSC.ORG
Lea Venezuela DIRECTOR LEA@MECSC.ORG
Khaye Comanda ASSOCIATE DIRECTOR ACCOUNTS@MECSC.ORG
Mariz Matocdo MARKETING OFFICER CUSTOMERCARE@MECSC.ORG
Christian Baldonanza MEMBERSHIP/DATABASE ACCOUNTING EXECUTIVE MEMBERSHIP@MECSC.ORG
Justin Espiritu PUBLISHING & DATABASE MANAGEMENT COORDINATOR PUBLISHING@MECSC.ORG
Our team at the MECSC has grown. We have welcomed Justin Espiritu to our team heading up the Publishing Department. Reymond Lagmay has moved on from the MECSC closer to his home in the Philippines with a new role with Samsung in Malaysia.
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We include the latest retail trends, concepts and intelligence from the region and beyond in each quarterly issue of the Retail People Magazine. Through working together we have a stake in the success of the retail industry locally, regionally and globally through sharing information.
• What do you do today to keep current with the latest trends in the global retail industry?
The Retail People Magazine and our readership benefit with every issue through the fabulous input from our members. Our MECSC team is always eagerly welcoming new authors to publish a wide variety of current topics relevant to our members. Thank you to all our contributors this quarter including Patrick Dorais, Director of Sales from Al Nassma Chocolate, Dr. Khalid Suleiman Aljasser, CEO of Arabian Centres, Rahul Suri, Managing Director of Ritz Search, Ameesha Prabhu, CEO from TRRAIN, Kamel Shaban from Brands International, Daniel Parry, MD at Gulf Related in Abu Dhabi and Shah Karim CEO from SafeRock. Our Membership team at the MECSC is headed by Ian Baldonanza. We have enjoyed a steady rise in the number of new members through Ian’s hard work which is another way to ensure that the lines of communication are always open with our membership. A common question as feedback from our membership is ‘What benefit can the MECSC / ICSC membership provide for me as an individual in the retail industry?’
Where do you see your retail career going in the next year, three years, five years?
• Who would be important for you to connect within the retail business locally, regionally or globally that would make your retail career better?
• When did you last participate in an industry-wide regional networking event? • What if you began to share your experiences in the retail industry with like-minded professionals like yourself, if for no other reason but to know you are not alone solving the many challenges you face daily? A common response from long standing members of the MECSC / ICSC to the above questions includes that ‘our organization opens your eyes to the many possibilities, solutions, opportunities, relationships and alternatives that do make your life in the retail industry better…..everyday!!!’ The more involved you become in the MECSC / ICSC the more opportunity you have to learn from others. Our team at the MECSC / ICSC would like to thank all contributing authors for providing these great and informative articles. Thank you also to our members, advertisers and supporters who make each Retail People Magazine edition the great success that it is each quarter!! We trust that you will enjoy reading the Retail People Magazine as much as our team has enjoyed assembling it for you. Thank you
The benefits of being a member of the Middle East Council of Shopping Centres (MECSC / ICSC) are many. However, I always like to start the conversation with a few questions back to the person asking that question with: • What do you need to make your current role in the retail industry better?
David Macadam CEO MECSC
Marwan Eskandarani Group Business Development Director Kamal Osman Jamjoom Group LLC. MECSC Board President
Media One Tower Dubai Media City PO Box 2331, Dubai, UAE T: +971 4 427 3000 F: +971 4 428 2261 motivatepublishing.com connect@motivate.ae
Thank you to MECSC Board Chairman Majid Al Ghurair, President, BurJuman Centre and welcome to our newly elected MECSC Board Members for 2016-2018.
Chris Capstick
Marwan Eskandarani, Group Business Development Director – GCC, Kamal Osman Jamjoom Group LLC
• What is it that would help you to better facilitate your retail business locally, regionally or globally?
PUBLISHER
Andrew Williamson, National Director – Head of Retail MENA, JLL
Ingrid Valles
Avijit Yadav, CMD, CSM, CDP, CLS, CRX, Chief Operating Officer, GLA Property Management Co. LLC
PROJECTS MANAGER
Rouf Majid
Khalid Aljasser, Chief Executive Officer, Arabian Centres Real Estate Co.
SENIOR DESIGNER
Luca Cappuccitti, Head of Global Business Development, DI Design & Development Consultants (UK) Ltd.
Sunil Kumar
Maimunah Shebani, General Manager, INMA Property Development LLC
GENERAL MANAGER - PRODUCTION
Marcello Larizza, CSM, CRX, General Manager, Line Investments & Property LLC
PRINTED BY IPP
Mohammad Alawi, CEO, Red Sea Markets Co.
4 | Retail People
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Opinion
BRANDS REVOLUTIONIZING MEN'S FASHION
BRANDS – Oman Avenues Mall
S Kamel Shaban Brands International 6 | Retail People
ince our launch in 2005, Brands has established itself as a leading destination for Men’s Formal wear, semi-formal and smart casual fashion and accessories. From our first store in Dubai, we now operate across the GCC with stores in UAE (11), KSA (4), Qatar (1) and Oman (1). We have plans to open further stores early 2017 in Qatar and UAE. In a retail environment which is traditionally dominated by global franchise brands, we have found our niche within the market and are one of the few home grown brands to succeed and thrive. We believe our success is based on our extensive product offer, no matter what age you are, what size you are and what your budget is, you will find what you are looking for in our store. When you visit our store, you will find a wide range of quality, fashionable products at affordable prices, in a pleasant and easy to shop environment.
We operate 6 in-house brands in our stores, Alberto Paolucci, Binnino, FT, Mosaique, Jack Morgan and DKS. Each has a very distinctive look and feel. Our suiting comes in a variety of fittings including slim, tailored and regular the same applies to our shirt collection. From our entry brand Alberto Paolucci which offers a wide range of durable suits made for everyday wear at the office up to our premium brand DKS which offers very high quality and stylish 100% premium wool suits for executives and that special occasion.
Opinion
BRANDS – Fujairah Mall, Fujairah
Each of our stores has a team of highly trained staff and as part of our exceptional customer service levels, each store has a number of tailors who can make any alteration to achieve that perfect fitting suit. Our vision at Brands is to become the number 1 destination store for men’s formal, semi-formal and smart casual in the GCC. We will achieve this with exceptional quality product at affordable prices combined with excellent customer service within an easy to shop environment. We will continue to grow our number of stores and have plans in place to open 5 stores per year over the next 5 years. We also have plans to move into new markets within the GCC and further afield.
BRANDS – Shindagha City Centre, Dubai
BRANDS – Dubai Creek
Retail People | 7
Opinion
DELIVERING SOMETHING EXTRAORDINARY IN THE HEART OF ABU DHABI Daniel Parry, Managing Director at Gulf Related, talks about their pioneering project in the capital of the UAE
CAN YOU TELL US A BIT ABOUT AL MARYAH CENTRAL AND WHAT MAKES IT UNLIKE ANY OTHER RETAIL DEVELOPMENT IN THE REGION? We are creating a mall for everyone everyday – a place for those living in or visiting Abu Dhabi to shop, eat and be entertained. Starting with luxury shopping and The Dining Collection at The Galleria, and continuing with Abu Dhabi’s most exciting family-friendly retail, casual dining and leisure collection at Al Maryah Central, our 360-degree offering has been designed to keep people coming back, time and time again – providing an experience which doesn’t currently exist in Abu Dhabi.
concepts, including La Petite Maison, Zuma, Roberto’s, Coya, Nusr-Et, Loca and Eat Greek. The Dining Collection, along with the multitude of casual, family-friendly dining options planned for Al Maryah Central, will see 100 new food and beverage outlets open on Al Maryah Island – meeting the high demand for quality dining diversity amongst residents and visitors to Abu Dhabi.
WHAT CAN A CUSTOMER EXPECT TO EXPERIENCE AT AL MARYAH CENTRAL? Al Maryah Central truly embodies the sophistication of a big city, with an emphasis on local familiarity, walkability and discovery. Careful consideration has been put into every
CAN YOU TELL US MORE ABOUT THE DINING COLLECTION AT THE GALLERIA? Daniel Parry Managing Director Gulf Related 8 | Retail People
Following five years of planning, The Galleria recently announced the creation of The Dining Collection, which comprises renowned chef and restaurateur-led, award-winning
Next Generation Mall in the Heart of Abu Dhabi
Opinion
Macy’s – Al Maryah Central
element so that our customers can choose from a selection of activities – ranging from some serious retail therapy, to a coffee and cake in one of our many parks. It’s the type of place you could quite easily spend the day, without feeling like you’ve been in a mall, by unwinding in an environment that takes advantage of its spectacular waterfront location.
created 100,000 square feet of landscaped, green open spaces – designed to maximize the use of outdoor space. Choreographed water fountains, a carousel, children’s playground and sporting activities, will be featured in Family World and Sports World. Our entertainment offer will also include a 21 screen VOX Cinema with Laser IMAX.
WHAT ARE SOME OF THE KEY FEATURES OF AL MARYAH CENTRAL’S SHOPPING, DINING AND ENTERTAINMENT OFFER?
IS AL MARYAH CENTRAL ON TRACK TO OPEN IN 2018?
Designed in conjunction with Rockwell Group, our signature Food Marketplace will provide a variety of day-to-night dining experiences – from café kiosks, to one of the many fine dining restaurants. We’ve also
In September 2016, we announced that Al Maryah Central is 50% leased, with over 785,000 square-feet of signed leases, in a significant milestone for the development.
In 2014, we announced our anchors – Bloomingdale’s and Macy’s – the two largest purposebuilt department stores in the region. In 2015, we announced
Bloomingdale’s – Al Maryah Central
completion of our capital raising and appointed Multiplex as our contractor. In September 2016, we announced that Al Maryah Central is 50% leased, with over 785,000 square-feet of signed leases, in a significant milestone for the development. Over 60 more brands have been secured with leading retailers, including Dubai Holding Group, Majid Al Futtaim Group, Chalhoub Group, Al Tayer Group and many others. The series of landmark partnerships will bring favored international brands, including a 35,000 square-feet flagship Zara, All Saints, Lululemon and Alice and Olivia – all planned for our 2018 opening.
Family World – Al AlMaryah MaryahCentral Central
Retail People | 9
Networking
NEXTGEN JEDDAH
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he Next Generation Networking Reception Jeddah was held at the Park Hyatt Hotel, Jeddah, Saudi Arabia on 10th October 2016. It was a successful event hosted by our many Sponsors and the MECSC/ ICSC. We would like to thank all our sponsors including Arabian Centres, Riyadh Park, Jeddah Chamber
of Commerce, KINAN, Red Sea Mall, MallzApp, Wojooh, Sparky’s, Faden Media, Park Tabuk, Al Mahmal Center, JLL and all the people who attended the event. A Big Thank You! The NextGen Networking event brings retail industry professionals together in an environment to facilitate business development, knowledgesharing and networking. MECSC is hosting NextGen events throughout the MENA region. Check out the MECSC Event Calendar at www.mecsc.org to join a NEXTGEN event near you.
10 | Retail People
Opinion
THE TRANSFORMATION OF KSA’S RETAIL SECTOR
F Khalid Suleiman Aljasser CEO Arabian Centres 12 | Retail People
or an economy heavily reliant on oil revenue, contributing roughly 80 per cent of its GDP, this is a time for modulation, with great potential for growth and diversification amid low oil prices. One such strategic avenue for the Kingdom of Saudi Arabia (KSA) has been the recent transformation of its retail sector on the back of market demand and a youth-led demographic transition, forming part of its overarching Vision 2030. Having eased restrictions on foreign investment leading to increased interest from international retailers, there is potential for strong growth in the Saudi retail market. Apart from simply being the largest economy in the Middle East, a rapidly growing population with access to disposable income is cited as one of the catalysts for surge in mall construction and sector performance, according to the KSA Retail 2016 report by Colliers International. The report states that KSA’s population is expected to increase from 32.3 million in 2016 to 34.3 million by 2019, of which approximately 65% of the current population is comprised of a generation that is born between 1977 – 1994 and a teenagers generation that is born in 1995,
Opinion
which create new and favourable social drivers for consumption. More women entering the workforce, and the potential of being able to drive have also influenced lifestyle and behavior patterns which are important trends for retailers and mall operators to be aware of and incorporate in their strategy and product/tenant mix respectively. For instance, under the feminisation laws in Saudi Arabia, shops selling fragrances and makeup were among the first in the retail sector to move towards recruiting primarily Saudi female staff, a trend which several retailers chain, was quick to adapt under the new regulations. Similarly, indicators also point to an increase in digital penetration in the Kingdom. The Communication and Information Technology Commission states that the total number of mobile subscriptions reached around 48 million by the end of Q2 2016, with a penetration rate of 152%. The number of Internet users in the Kingdom continues to rise rapidly, reaching about 22.4
KSA’s population is expected to increase from 32.3 million in 2016 to 34.3 million by 2019, of which approximately 65% of the current population is comprised of a generation that is born between 1977 – 1994 and a teenagers generation that is born in 1995. million at the end of Q2 2016, with a population penetration of 70.4%. The increasing demand for Internet services and broadband was attributed to high usage of social networking applications, video downloading and gaming, inferring an impetus for e-commerce and digital innovation in the retail space. At Arabian Centres, innovation is a core pillar of our growth strategy
and an essential component of our evolving relationship with our clients, customers and visitors. Our innovative smart phone Application (App) recently won an excellence award at the annual Middle East and North Africa Retail and Shopping Centre awards in Dubai, and we are also one of the first mall groups in Saudi Arabia to use mobile-phone tracking technology to analyse visitor traffic patterns within our malls. The data and insights gathered from the exercise were then utilized in the design and retail/leisure mix in Arabian Centres malls, which have some of the highest number of visitors and footfall in the Kingdom. In essence, despite the tightening of markets both globally and regionally, the kingdom is on the edge of a retail boom. Contributing one in every six jobs, the sector has the ability to make a dramatic impact on KSA’s economy, propelled largely by a growing population, and a demographic shift toward people with higher disposable incomes and a greater propensity for fashion, dining, leisure and entertainment.
Retail People | 13
RECon MENA
Our Sponsors and Partners: PLATINUM ANNUAL SPONSORS • Hamat Property Co. • Gate Avenue at DIFC • Arabian Oud International ANNUAL SPONSOR • Arabian Centres GOLD SPONSORS • Red Sea Market Company – Red Sea Mall • Line Investments & Property LLC • Unified Real Estate Development Company • Al Othaim Real Estate Investment & Dev. Co. SILVER SPONSORS • CELS Events • Kinan International Real Estate Development Co. • Retail Emotions • Alef Group LLC • Dalma Mall • Afkar Lighting Equipment Trading • Business Automation & Security Systems (BASS) • GLA Property Management
HIGHLIGHTS OF RECon MENA 2016
THE CUSTOMER AND INNOVATION
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• A record of 1200+ delegates over the three days. • Sold out Exhibition Area and Gala Dinner – again this year!!! • Since 2013, MECSC achieved together a 3-fold increase in the number of entry submission now totaling 118 award entries in 2016. A record of 51 awards presented on stage this year! • RECon and MECSC mobile App launched. • A first – Deal Making sold out and received fabulous feedback from our delegates. • Pre-conference workshop was an outstanding success. Out of 35 delegates expected to come, surprisingly received 125+ delegates attended the Intensive Workshop on Retail Property Management. • Launch of the VIP – CEO’s invitation only dinner at Pier Chic for 85 guests. • Recognition of all MECSC RECon sponsors with an acknowledgment of their support at the kickoff Cocktail Party. A Massive Thank You to Everyone who attended and participated in the 2016 RECon Conference – The Customer and Innovation and Congratulations to the 51 Gold and Silver Award Winners in the recently concluded MENA Shopping Centre & Retailer Awards.
Group FZE • BTC Fashion
Pre-Conference
• Brands International
• MATALAN • Aldar Properties • Yardi Systems Ltd • Reem Mall
• Grand Optics OFFICIAL AIRLINE PARTNER • Emirates Airline
14 | Retail People
Cocktail Reception
• Univision Media LLC/Le Chateau Bleu EXCLUSIVE GALA DINNER SPONSOR
David Macadam, CEO of MECSC said, “This year, we are celebrating 22 years of successfully running the most successful conference dedicated to Retailers and Shopping Centres in the MENA region. One of the highlights of RECon MENA is the celebration for the Retail Awards which play a prominent role in encouraging and offering recognition to the success and achievements of Retailers and Shopping Centre Teams.”
Some of the Highlights of RECon MENA 2016 are:
BRONZE SPONSORS • Azdef Group/AZAB Production
he 22nd Anniversary of RECon MENA 2016 took place at the Ritz Carlton DIFC on October 30, 31 and November 1, 2016. RECon Conference Celebrated the Retail Industry – Credibility – Recognition & Innovation.
RECon MENA
OFFICIAL EXHIBITION CONTRACTOR • Kingsmen Middle East LLC OFFICIAL TECHNOLOGY PARTNER • Hypermedia WELCOME COCKTAIL RECEPTION SPONSOR
CONFERENCE BREAK & LUNCH SPONSOR AND DELEGATE BAG SPONSOR
Conference
• Arabian Oud International
• Line Investments & Property LLC EXCLUSIVE GALA DINNER COCKTAIL SPONSOR • MATALAN LANYARD SPONSOR • Brands International DELEGATE BADGE SPONSOR • Kinan International Real Estate Development Co. STATIONERY SPONSOR • Line Investments & Property LLC • Reem Mall CONFERENCE DELEGATE & GALA GIFT SPONSORS • Line Investments & Property LLC • Alef Group LLC • Brands International • Arabian Oud International • Al Nassma Chocolate LLC • Savant Data System • Right Selection
• Nearbuy Solutions • Alissar Flowers • Arab Luxury World
Gala Dinner
SUPPORT PARTNERS
• Secure World • Dhamani • Al Nassma Chocolate LLC • Crystal House Sharjah MEDIA PARTNERS • City7Dubai • Khaleej Times • Selfie TV • SCT
Retail People | 15
group
Meet the next generation of retail marketing. From relationship building to engagement strategies, the international firm that gives your customers experiences beyond expectations.
www.cels.ae | info@cels.ae offices in TORINO, DUBAI, DOHA, KUWAIT CITY
Light up your visitors’ experience! Discover the magic of the No.1 decorative lights manufacturer in the Gulf.
Festive settings, custom creations, 3D video mapping & light art. Learn more on
afkarcreations.ae
Opinion
HOW TO ATTRACT THE BEST TALENT (In 2017)
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erve customers better is in most cases the mantra for retailers and shopping mall developers. When initiatives and strategies are undertaken one of the first steps to follow is identifying and hiring the best talent to execute the vision at hand. The question is, how do you attract these top performers?
ONLINE – FIRST IMPRESSIONS MATTER Online presence is usually the first point of contact a potential candidate shall have with your business. The brighter the professional the more research they shall be conducting prior to the initial meeting. Google your company for yourself and see if the results are satisfactory, key items include: does your website accurately display information regarding your brand and employer values? Is your presence on social media inviting and creative, thus displaying a constant evolution and growth?
NON-TRANDITIONAL MEDIA & MULTI-CHANNEL RECRUITMENT
Rahul Suri Managing Director RITZ SEARCH Retail & Mall Recruiters 20 | Retail People
Job descriptions on Job boards are basics. When you are seeking applicants who are forward thinking you need to target them beyond traditional channels. Social Media is a powerful tool when used correctly, examples include LinkedIn talent solutions, Facebook customized ad campaigns plus post vacancies on your page, videos on YouTube, Instagram recruiting and Twitter to spread the word. Last but not the least, a Careers page on your own website where candidates can apply directly for vacancies and thus allowing you to further build your database for current and future hiring.
Opinion
MOBILE RECRUITMENT STRATEGY 75% of jobseekers look for the next move using their mobile phones. 23% of companies have mobile optimized career pages. 4% of companies have mobile apps. Job seekers are already visiting your career sites and looking at jobs via their mobile phones. Their decision to apply or not may depend on if you’re portal is optimized and ready to accept their interest. Optimizing your recruitment strategy allows you to reach the busiest candidates and it makes it easier for hiring managers to create job posts and share them across social media, on the go.
HANDPICK THE BEST AND LET THEM KNOW THEY’RE WANTED
INTERVIEW REMOTELY Everyone is busy. In many cases you will find interviewing via an online tool, for the first round, to be quite efficient, especially across borders. The time saved will be mutually appreciated by your team and the candidate. Suggestions: Skype or GoToMeeting.
Retail & Mall Recruiters
Passive candidates are most likely to be your dream hires, demonstrate that you are willing to go the extra mile for their attention by reaching out to them in a personal manner. An article in BusinessWeek cites the case of video game company Red 5 Studios, who handpicked 100 ideal candidates and got to "know" them by researching their social media profiles and past work. The startup then sent each one a personalized iPod equipped with a welcome from the CEO. "The flattery paid off: More than 90 recipients responded to the pitch, three left their jobs to come on board, and many more potential hires discovered the company through word-of-mouth buzz generated by the search," BusinessWeek says. www.ritzsearch.com
When initiatives and strategies are undertaken one of the first steps to follow is identifying and hiring the best talent to execute the vision at hand. Retail People | 21
Adrenaline rush for the entire family! Now Open At Mall of Qatar XtremeLand A brand of Al Othaim Leisure & Tourism
XtremelandME
Opinion
PROFITS ARE HIDING IN PLAIN SIGHT!
T
he recent 2016 RECon in Dubai brought together business leaders, visionaries, and company executives from the Gulf region and across the Atlantic. While there was realistic discussion of the region's economic woes, there was also exploration of new ideas and how to put the region on the international map. Profits seem to hiding in plain sight – even in the Gulf. To find them, management has to heed the call for tough actions during tough times. At times like these, businesses have to embrace decisions based on hard facts, and take actions grounded in reality. For the sake of shareholders, management should shift focus from top line to bottom line, ensure that merchants runs leaner shops, reallocate marketing spend to increase marginal returns, and engage the customer.
SOUKS AND MALLS – THE RETAIL GAME IS STILL THE SAME Traditional souks have evolved into our sophisticated current-day malls. The traveling traders of the Middle East and Africa have become the sophisticated supply chain, merchandising, and online customer platforms of today. But through this evolution, have retailers lost their way? Retail has become so rich in technology that it is easy to forget that it's there to support people's desire for personal contact while shopping. Email offers and messages can never replace the face-to-face interaction between the customer and the salesperson.
Shah Karim CEO SafeRock 24 | Retail People
Opinion
MILLENNIALS, GEN Z, AND WHAT RETAIL IS ALL ABOUT RECon made us think about why people go shopping and whether retailers need to move back closer to the customer. The retail industry has a perceptible level of insecurity dealing with the customer. This can be overcome with a better understanding of customer behavior. We can do this today from the digital footprints they leave behind. For example, Millennials and Gen Z consumers use electronics to merge online and offline experiences and this provides the opportunity to track their engagement and behavior like never before. The goal of the retail business today is the same as in the days of trading salt for spice: "I'll give you something you need in exchange for something I want". It's the goal of making a profit from each and every transaction. Today's businesses have to keep an eye on basics and make decisions based on facts and ROI. Gulf retailers are far behind as they have taken the easy path for the last two decades. Outside of top-tier malls, shopping centers in the Gulf region are hurting economically. Oil price changes, rapid changes in customer behavior, new consumer technology and social platforms, and the dramatic growth of online retail have all contributed to this slowdown. Traditional retailers also face intense challenges from new shopping formats that promise easier online transaction and better customer service. It is clear that shopping centers need to find new ways to meet the needs of customers and they have to deliver greater profits.
THE SECRET TO MAXIMIZING PROFITS Today's retailer need is to improve their understanding of customer demand. They need tools to do this
because the problem is quite mathematical and complex so even a large team has difficulty figuring it out on their own. SafeRock has an excellent forecasting solution that will reduce out-of-stocks, improve safety stock, and reduce clearance – all of which leads to greater profits and shareholder returns.
How to maximize profits and ROI: The key to maximizing profits is to measure return on investment (ROI) with accuracy. This is central to SafeRock's Sales Forecasting and Promotion Optimization solutions. Our systems calculate baseline and ROI for millions of SKUs and transactions daily. We use Big Data to improve profits and increase transactions. Companies in the GCC should take advantage of such solutions. Create value for shareholders and partners: Current management needs to focus on profits with laser-like precision and improve free cash flow to pay dividends to shareholders. The right analytics can accurately show which brands make money, which promotions increase profits and ROI, and whether one offer is more profitable than another. Clarity of results ensures a better handshake between brands, retailers, and shopping center operators. 3000 years ago, everyone traded spices for salt, and this trading satisfied mutual needs. Today, we have monetized the transaction, but the basic need remains and it is measured by each person's unique form of ROI. Yesterday it was time and a sack of salt. As we saw at RECon, today it's entertainment, engagement, and a way of connecting, along with a touch of ROI. Retail People | 25
Advertorial
RETAIL EMOTIONS
Local craftwork in XXL size: a centre with customers proud of their region.
A Dr Kersten Rosenau CEO and Owner Retail Emotions 26 | Retail People
large German shopping centre company wanted to know what impact seasonal decorations really had on customer perception: the results of the research hit like a bomb! Customers not only perceived the atmosphere as being greatly enhanced, higher scores were also achieved for the tenant mix, car parking, access to the centre by public transport and nearly all other key factors of the shopping centre. “In the eyes of the customer, good decorations simply change everything and they start to see everything through rosecoloured glasses”, says Dr. Kersten Rosenau, CEO and owner of Retail Emotions. MECSC member, Retail Emotions, is one of the most important companies in the business worldwide and also working in the Arab world. Whether for Ramadan or for the Christmas season, Retail Emotions is aware of current trends. “Design and once again: design! Made-to-measure, of course, for each client and their individual needs” Rosenau says. As the architecture and the interiors of shopping centres become increasingly more sophisticated, so do the decorations. These just cannot be from the peg. Westfield London has to be decorated completely different
than the GUM in Moscow or the Mall of Berlin: each centre naturally has its own DNA. The visitors can feel this too. If every-thing fits well together, then the positive effects are further enhanced. To make this happen, first-class designers are a must. Retail Emotions is proud to have a world-class team. With the demand for high standards, budgets are also increasing. Amounts of AED 2,000,000 are not unusual for a decoration scheme, and there are also centres spending AED 5,000,000 or more. This is where a further trend comes into play: quality! The quality can be seen by the clients, who are impressed, enthusiastic and proud of their decorations. Quality also means that decorations can be used for several years without any problems: here the investment really pays off. ‘Think big’: gigantic objects are also in vogue. New York sets the standards here with its spectacular Christmas decorations, as well as its extravagant shows. Retail Emotions boss Rosenau: “First-class decorations in connection with great music and spectacular light effects to create a show is a big topic for us at the moment!” www.retailemotions.ae ka@retailemotions.ae +971 54 443 7408
MECSC
PRESENTS
NETWORKING EVENT We are pleased to invite you to the Riyadh Next Generation Networking Reception which brings retail industry professionals together to facilitate business development, knowledge sharing and networking. The reception will take place on Wednesday, 15th March 2017 from 6:00pm until 9:00pm at the Ritz-Carlton Riyadh. We look forward to seeing you all there!
RSVP online at www.mecsc.org or call MECSC at +971 4 359 7909 or more details
www.mecsc.org
ONE DAY. A MILLION SMILES.
RETAIL EMPLOYEES’ DAY
R
etail is one of the fastest growing industry sectors in India and has seen remarkable transformation over the last 2 decades. India's retail market has the potential to grow from USD 630 billion in 2015 to USD 1,1001,200 billion in 2020 on the back of a young demographic, rising income levels and increased urbanisation. The retail industry employs over 45 million people, making it the second largest employer in India. Given the aggressive growth projections in Indian retail, the effective engagement of employees in the retail industry is an increasingly critical requirement to accelerate growth by providing exemplary customer service levels and maximising sales. It was in this light that Mr B.S Nagesh, NonExecutive Vice Chairman of Shoppers Stop, established the Trust for Retailers and Retail Associates of India – TRRAIN in 2011, with the objective of achieving immediate and lasting change in the lives of retail associates in India. TRRAIN has undertaken various initiatives to boost retail employee engagement and development, including awards for excellence in service (TRRAIN Retail Awards), Pankh-Wings of Destiny, an initiative to provide jobs to Persons with Disabilities (PwD) in retail, TRRAIN-Aptech Retail Education program and its flagship event, the Retail Employees’ Day (RED). Retail Employees’ Day is celebrated every year on 12th December, encouraging employers and customers to recognise the efforts of retail associates across the country and eventually the world and express gratitude for their untiring support. Since its inception in 2011, RED has grown to reach over 4 million employees across 2 countries – India and Turkey and across geographies and has become one of the top 3 days in the retail calendar. RED 2016 saw widespread adoption across retailers and brands of all sizes from small single shop retailers to a large retail group, a disability center training people for retail celebrating
Ameesha Prabhu CEO TRRAIN 28 | Retail People
to airport retailers, from kiranas to local associations- it turned out to be a huge industry wide celebration. Not only the industry but also the consumers have thanked their favorite brands and participated in the celebrations. The event also received support from brand ambassadors across multiple brands, ministries of central and state governments of India & the Prime Minister of India. The simple action of saying Thank You has garnered an estimated digital footprint of over 20 million. In 2016, Retail Employees’ Day also inspired the Business Excellence Department in the department of Economic Development UAE and various retailers to join hands and celebrate Retail Employees’ Day in UAE, making this simple idea a truly global phenomenon. Retail Employees’ Day has often been quoted as the day that helps the retail sector stand together as one, unlike any other celebration. Planning for the day starts over 1.5 months in advance and most companies have a separate budget crafted to carry out activities on the day. It has gone to become an occasion for employees from the Head Office and stores of different brands to celebrate together. An impact study on Retail Employees’ Day was conducted across different types of retailers, involving CEOs, HR heads, store managers, malls, and most importantly, the store employees. Organizational leaders see an immediate impact on sales post the Retail Employees’ Day celebrations. With high energy levels in stores from December onwards, store managers have attributed Retail Employees Day with setting a positive tone for the most important sale period for the retail industry. A single day can truly have a lingering positive impact and be instrumental in instilling long lasting pride and joy in the retail sector. With the support and encouragement from retailers, the day is on its way to becoming an iconic industry wide celebration in India, Turkey, UAE and across the world.
AL NASSMA CAMEL MILK CHOCOLATE
ADDING EXCITEMENT TO THE WORLD OF CONFECTIONERY
Q Patrick Dorais Director of Sales Al Nassma Chocolate LLC
uantity over quality – in recent years, one new trend was quickly following the next and cheap lifestyle products were flooding the global markets in masses. The key to success was cheap mass production; a tendency which was affecting all areas of sales. But the world of shopping is rapidly changing. Nowadays, consumers are not easily impressed by bulk offers and promotions anymore, but seek extraordinary and exclusive product or more precisely, experiences. Particularly in the confectionery and gift segments, price no longer plays the primary role in terms of purchase motivation and the “wow” effect is more and more a criterion for product selection. There is a growing demand for local brands offering new
and exciting, yet very exquisite and homegrown products making shopping an experience rather than a mere cash transaction. This change of consumer expectation challenges shopping destinations around the globe. Al Nassma camel milk chocolate perfectly addresses all these new developments. Being an exclusive and worldwide unmatched product this Retail People | 29
Since 2008, Al Nassma chocolate is conquering the world of confectionery and is now adding flair and excitement to a number of renowned, exclusive and premium shopping destinations such as Harrods in London, Julius Meinl am Graben in Vienna and KaDeWe in Berlin. Growing strong as a brand in its UAE-home market, Al Nassma is present at all major tourist sights and landmarks in the UAE, such as The Dubai Mall, Burj Al Arab and at the highest tower in the world, Burj Khalifa. Apart from its home base, Al Nassma has established itself at major duty free and travel retail providers, not only in the Gulf region, but also in places as far away as Jakarta, New York City, Bangalore or London. More space and more focus on confectionery as an impulse category will enhance a retailer’s revenue; the “colorfulness” and wide appeal of these kinds of products can act as a signal to increase footfall, penetration and conversion in any retail outlet. The company name has its roots in the Arabic language and portrays a seasonal breeze, which brings respite to the peoples of the desert. And with its uniqueness and exclusivity, Al Nassma camel milk chocolate definitely brings a breath of fresh air to the world of shopping.
camel milk chocolate is creating a ‘sense of place’ meaning that the brand is giving customers a local, exotic and personalized feel big global brands are not able to offer. Based on a very distinct key ingredient, the camel milk, all products are Halal and of the finest quality and as such enjoy a relevance and business potential also outside of the geographical area where one traditionally finds camel herds. Al Nassma – first & finest camel milk chocolate – entirely focuses on the creation of a pure and exclusive delicacy. As a bean-to-bar producer, all ingredients are controlled and of impeccable quality and even people who don’t consider themselves chocolate connoisseurs will for sure be able to detect the difference. As innovative as the product itself, Al Nassma is also adapting to the different requirements of markets and target groups. The brand is very particular about outstanding quality as well as deluxe packaging. The products are presented in wrappings and boxes prepared from finest materials, making them an immediate gift and souvenir. Al Nassma camel milk chocolate is not a chocolate for mass distribution on the global market but rather focuses on selected luxury outlets. The brand is very careful in selecting distribution partners and points of sales. Choosing a unique way of presentation and sales with its exciting and eye-catching in-store presentation - the iconic golden camel-shaped kiosk - this unique chocolate is a beacon of originality in any 5 star location, shop and mall.
h e swe e t e s t t re a s u re o f A ra b i a .
FIRST AND FINEST C A M E L M I L K C H O C O L AT E .
Made from camel milk and finest ingredients like genuine Bourbon vanilla and pure cocoa butter, Al Nassma chocolates symbolize the discerning taste of the Arabian world and a unique and halal quality product. For travelers looking for a distinctive and delicious gift, Al Nassma represents the refined elegance and luxury of Arabia. Already a regional success, Al Nassma is looking forward to showing our global trade partners how our offer can help drive footfall, penetration and conversion in your outlet. Please contact us on office@al-nassma.com.
www.al-nassma.com
BOARD MEMBER’S CORNER
STAY POSITIVE
W
herever you look today in the world you can find negativity. In fact it’s the easiest thing to do to be negative. Some individuals also become very creative about negativity and have ill thought theories formed and negative results are forecasted. One of the great quotes of all times to me was by Henry Ford “Whether you think you can, or you think you can't – you're right” Many of the most successful people choose to stay positive and spread the positive energy around them. To be positive is not to suggest that we ignore the facts and the figures of today’s economy, not at all! What our retail industry is going through is likely happening to other corners of the world as well. It is up to each leader in his or her organization whether on the Retailer side or the Landlord side to choose wisely and turn this situation around and make the best out of it. Now is the time where all parties should sit around the table to discuss the road map to pass through these difficult times together with the maximum possible benefits for all. This road map does not necessarily have to include a loss of revenue to either one or both parties. Both parties instead must focus on maximizing the outcome and increasing productivity. We need to identify the most creative ways of increasing the footfall of mall traffic and improving the conversion rates of the retailers. At the same time, both parties have to be realistic and transparent. If something needs fixing, then better to take action sooner rather than later. Long term and strategic partnerships have always proven to be much better than one sided short term gains. Finding mutual ground for all parties involved is always the fairest thing to do. Working together can only be helpful for all parties. Be careful about entering a negotiation with only your business best interest in mind. Think Positive, Act Positive and Stay Positive … nothing will come on the other side but positive results.
Marwan Eskandarani Group Business Development Director - GCC Kamal Osman Jamjoom Group LLC MECSC Board President
32 | Retail People
PLACE MAKING A SHOPPING CENTERS UNIQUE IDENTITY
P
lace Making is the art and science of making authentic, vibrant and resilient spaces within a retail development. It is the process of making a shopping center come to life. Place Making gives a unique identity to the development ensuring an authentic experience is delivered. The whole idea of Place Making is to become that “third place” (a comfortable social space complementary to one’s home and work space) and to create sociable places where people meet and engage in activities. Key social trends, shifting preferences, and new ways of socializing are key drivers to the future of retail. Customers are more demanding than ever. They want more experiences that’s why retail developments should be focused on creating people-centered spaces that provide more experience. For a retail development to be successful in the long term, the experience elements should be designed into the masterplan. Traditionally, shopping centers were built and then the concept of how to promote customer loyalty and customer engagement were discussed. That doesn’t work anymore. Place Making needs to be embedded during the design and planning stage of a shopping center for it to be successful. Proactive steps to “design in experience” is the new trend in the Shopping Center industry. Food is a big driver when it comes to Place Making but there are many other Place Making directions that can create vibrant hearts throughout the development. Some key directions are; Arts, Texture, Learning & Innovation, Events and Leisure. The main benefits of Place Making are creating customer loyalty, increasing footfall, a distinct identity, local ownership, memorable experiences, always something going on, and increased customer engagement. Place Making isn't obvious or easy. It is not a “product” but an experience – where the whole is greater than the sum of its parts. Developers must be innovative in the design approach of new shopping centers by creating centers of community that are active, engaging and fun.
Maimunah Shebani General Manager INMA Property Development LLC
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Facilities Retail Facilities F&B Retail City Cinema F&B Terrace area Cinema City Terrace area
13,000 square metres 3,000 square metres 13,000 metres 8 screensquare complex Including IMAX 3,000 square metres Outdoor culinary experiences 8 screen complex Including IMAX Outdoor culinary experiences
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