Circulated in 45 Countries
ISSUE 23 | APRIL – JUNE 2020
M AGAZI N 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 P.28: Retail Development Industry Post COVID-19 Thoughts P.40: Mall of Dilmunia – Keeping it Colorful
Magazine Curated By:
CONTENTS
CONTENTS 05
WELCOME NOTE
The Middle East Council of Shopping Centres & Retailers
Unit 507, 5th Floor, Arenco Tower Media City, Sheikh Zayed Road PO Box 43972, Dubai, UAE Tel: +971 4 359 7909 Fax: +971 4 355 8818 www.mecsc.org
NEWS BRIEF & WHAT’S NEW? MIDDLE EAST 06
Mall of Dilmunia Announced the Opening of Tamimi Markets
06 Emaar Malls Defers Rent for Retailers in Light of Coronavirus 07 COVID-19: UAE Approves Decisions on Reducing Water & Electricity Bills of Businesses
David Macadam Chief Executive Officer david@mecsc.org
Lea Venezuela Director lea@mecsc.org
08 Coronavirus: Inside the New Field Hospital at ADNEC
Khaye Comanda Associate Director khaye@mecsc.org
09 Bahrain Launches Virtual Mall in Kingdom for Shoppers
Mariz Matocdo Marketing Officer customercare@mecsc.org
Christian Baldonanza Digital Media Content & Innovation Manager connect@mecsc.org
10
E-commerce Businesses Back in Action as China Gears up for Online Shopping Festival
11
Walmart Mandates Masks for Associates; Ramps Up Hiring (Again)
Justin Espiritu Relationship and Business Development Manager publishing@mescs.org
11
IKEA Says Visitors Returning Fast to Reopened Shopping Centres in China & Germany
Angelo Dominic Lunas Membership Executive membership@mecsc.org
07 Bahrain Extends COVID-19 Preventive Measures to Ramadan 09 DAFZA Launches Incentive Package for Free Zone Companies
INTERNATIONAL 10 Post-COVID: Hermès Earns $2.7 Million in Sales after a Flagship Store in China Reopens
ON THE COVER 12
The Family Business New Ideas and Concepts to the World of Specialty Retail
A Motivate Connect Publication
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 Greg Wilson Publishing Director - Connect
Ingrid Valles Senior Projects Manager
Rouf Majid Art Director
Sunil Kumar General Manager - Production
Binu Purandaran Assistant Production Manager Printed by Emirates Printing Press, Dubai RETAIL PEOPLE . APR-JUN 2020 .03
CONTENTS
BUSINESS ENTREPRENEUR 16
40
Mall of Dilmunia – Keeping it Colorful
What Makes a Family-Owned Business Last
FEATURED ARTICLE SPECIAL COVID-19 REPORT
42
The Dilemma: Primary Fixtures for Short Term Occupancy
43
Shopfront – A Brand that Transforms Space into a Retail Theatre
44 Novo Cinemas puts Customers and Colleagues at the Heart of their CX Strategy
18
COVID-19: Impact on Global Retail
24
What is Coronavirus (COVID-19) and its Effect on the Business World
26
Helping Retailers Comply to Government Directives While Keeping Customers Calm and Informed in Unprecedented Times
27
Shopping Centres: In the Post COVID-19 World
28
Retail Development Industry Post COVID-19 Thoughts
INSIGHTS 30
AMAZON – The Leader in E-Commerce
SHOPPING CENTRE UPDATE 34
How to Design a Shopping Mall
38
ABU DHABI MALL – Re-beautified Look to the Future
04. RETAIL PEOPLE . APR-JUN 2020
46
The Future is Here
47
Intelligent Retail
48
Retail’s Next Big Shift
50
Stay Relevant in the Age of Social Distancing
51
Native Tradition Illuminated Anew
52
Do you want your Message to Stick? IN FOCUS
54
“DALMA MALL” – Target Hearts Not Minds
MECS+R MEMBER’S SEGMENT 56
Members on Board and Corporate Members FEATURED MEMBER
58
One-on-One with Mazen Makarem, Marketing Manager, Balubaid Real Estate
Disclaimer: The viewpoints, articles and opinions contained in the Retail People Magazine are not necessarily those of the MECS+R.
WELCOME Circulated in 45 Countries
ISSUE 23 | APRIL – JUNE 2020
MAGA Z IN E
A FAMILY BUSINESS
WELCOME “Life is what happens when you’re busy making other plans.”
Featuring Rachel Walton Founder and Partner of Pop Retail and Upscale Retail
John Lennon – singer, songwriter and peace activist
Chelsea Lauren Walsh Retail Development Manager of Pop Retail and Upscale Retail
+SPECIAL REPORT: COVID-19 IMPACT on Retail Magazine Curated By:
P.16: What Makes a Family-Owned Business Last P.28: Retail Development Industry Post COVID-19 Thoughts P.40: MALL OF DILMUNIA – Keeping it Colorful
ON THE COVER:
Rachel Walton Founder and Partner of Pop Retail and Upscale Retail Chelsea Lauren Walsh Retail Development Manager of Pop Retail and Upscale Retail
Thank you to
Younus Al Mulla MECS+R Chairman
Mazen Hamza Qandeel MECS+R Board President Executive Director Granada Center
MECS+R Board Members Alessandro Gaffuri CEO & Founder CELS Group
Alfred Abi Antoun Head of Retail KSA & Egypt JLL MENA
Maimunah Shebani
John Lennon is famous for his wonderful music, prolific songwriting and prophetic quotes. With Lennon’s quote, our lives at the MECS+R and everyone’s lives globally have been changed dramatically and fundamentally beyond description. People’s lives around the world have been turned upside down. Our team is successful because we are small, united and are able to pivot quickly being flexible to the new realities of life. Working from home, our role at the MECS+R is now more important than ever to bring people together, share knowledge and promote your business in these unsettling global events with Coronavirus (COVID-19). With a newly created digital platform, the team at MECS+R can now help you to reestablish your networks and assist you to build on your knowledge base. Nothing is better and more effective for your business than building and renewing solid relationships. Through us, your knowledge base in the retail industry continues to grow. Our team works tirelessly through our many areas of digital reach including the Retail People Magazine, What’s Up Retail monthly newsletter and our soon to be released E-Learning Platform GVS Global School for Retail Professionals will ensure you have every opportunity to build and maintain your profile. To excel in the retail business all you have to do is participate, be active in the industry and be present at our many events digitally and physically held throughout the year, when it is safe to do so. We pondered on making the entire issue about the COVID-19 but chose instead to showcase the successes of Family Business as the theme for our May 2020 issue of Retail People Magazine. Our digital reach via the What’s Up Retail newsletter has more current and urgent messages around the Coronavirus impacting our world. Family business is the highlight of the May issue of Retail People Magazine, an update on Amazon, more news on digital ecosystems and AI, soft opening for Mall of Dilmunia planned, branding strategy, the new digital strategies and of course COVID-19 and the impact on business globally are showcased in this issue. Our team at the MECSC again would like to thank our authors, our advertisers and you, our readers, we thank you for your support. Your success and our success has helped us to understand that creating an organization with a clear vision is the lasting legacy we seek inspite of global events such as the COVID-19. The clear vision is the only way to connect with our audience who are our members, customers, partners and employees. Our Retail People Magazine inspires trust and loyalty. The MECS+R organization was founded on these values of trust and loyalty for over twenty-six years. Knowing your vision and keeping that vision in focus is essential for enduring success. An unwavering vision also provides for the ability to rise above the others regardless of the global shutdown.
Managing Director The Retail Agency
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.
Marcello Larizza, CSM, CRX
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.
General Manager Line Investments & Property LLC
Nada Abou Saab Director, Marketing East Region Shopping Malls, Majid Al Futtaim Properties
Rony Aoun Founder & CEO SMAG SAL Lebanon
DAVID MACADAM Chief Executive Officer MECS+R
MAZEN HAMZA QANDEEL MECS+R Board President Executive Director – Granada Center
Wail Balkhair CEO SAHAT Property Management Co.
RETAIL PEOPLE . APR-JUN 2020 .05
NEWS BRIEF
News Brief M I D D L E
E A S T
Mall of Dilmunia announced the opening of Tamimi Markets Mall of Dilmunia, developed by Dilmunia Mall Development Company, recently announced the opening of Tamimi Markets' first branch in the Kingdom of Bahrain and GCC, along with Nature's Market's new branch. Owned by Tamimi Markets, both supermarkets will offer visitors a comprehensive range of food items and home products. Covering a total area of 1,800 sqm, the new branches of Tamimi Markets and Nature's Market are located on the lower ground floor of Mall of Dilmunia conveniently located opposite the Dilmunia Canal with direct access to the Car Park. Tamimi Markets offers a huge variety
of fresh, top-quality produce, meats, local and imported foods, as well as household products and many more, all at competitive prices. The store also offers an extensive range of healthy, organic, dairy-free, glutenfree and sugar-free foods, in addition to specialized sections for cheeses, deli meat and freshly-baked goods. Nature's Market offers a curated selection of natural, organic foods, and over 5,000 products from around the world with an aim to raise awareness among visitors encouraging a healthy lifestyle through its healthy offerings that include cosmetic healthy supplements and dry food groceries.
DXB Entertainments gets a new CFO DXB Entertainments, the theme park operator, has confirmed Remi Ishak as its new Chief Financial Officer, after the incumbent, John Ireland, put in his resignation. Ishak was holding a similar title at Emirates REIT (Real Estate Investment Trust), the asset management company under Equitativa Group. “At DXBE, he will be responsible for the continued implementation of our strategy as well as helping guide us through the currently challenging operating environment,” said Mohammed Al Mulla, Managing Director and CEO at the parent company of Dubai Parks & Resorts. Apart from Emirates REIT, Ishak has a 15-year track record in the real estate and hospitality sectors, “ranging from operational repositioning and management to deal structuring and acquisitions,” Al Mulla addeds. Source: Gulf News (https://bit.ly/2S8xTk1)
Etihad Airways to resume passenger flights on May 16
Emaar Malls defers rent for retailers in light of Coronavirus The Dubai Mall operator Emaar Malls has deferred rent for some retailers who remain closed in line with Covid-19 safety measures. In a letter to tenants dated March 29, the company said it will not cash tenants’ cheques due on March 25, 2020, and onwards until further notice. "Considering the current conditions and the recent government directions in respect of activities in all malls and commercial centers, we are very keen on alleviating some of the burdens imposed upon all of us. Having considered all factors, we will defer collection of rent cheques received from those tenants whose cheques fall due on 25th March 2020 onwards and until further notice from the government,” the letter said. The Dubai Mall is Emaar Malls' flagship asset and is located at the base of the Burj Khalifa, the city’s main tourist attraction. The company's e-commerce platform Noon has seen a surge in home deliveries in the UAE and Saudi Arabia as people spend more time at home. Emaar opened a Dubai Mall virtual store on Noon to help it's brick and mortar retailers, whose revenues had been wiped out but requires them to pay a fee to be featured on the website. Emaar Chairman Mohamed Alabbar in April also announced he has taken
06. RETAIL PEOPLE . APR-JUN 2020
Abu Dhabi’s Etihad Airways plans to resume passenger flights on Saturday, May 16, the airline has announced. In a statement posted online, Etihad said that it is “working closely with the UAE government and global aviation authorities, our aim is to gradually return to a fuller schedule as soon as it is safe for us to do so.” For now, our flights remain suspended, and will return on May 16,” the statement said. “We’re planning to operate a reduced network from May 16 2020, which is now available to book on Etihad.com.” The statement added that Etihad also plans to launch a new service to Vienna, Austria on July 1. Until May 15, the airline will be operating a limited number of repatriation flights for citizens hoping to return home amid the Covid-19 pandemic. Source: Arabian Business (https://bit.ly/2Y6pXUi)
a 100% pay cut as part of a new salary structure implemented across all levels and entities to “secure the continuity of the business” amid the Covid-19 crisis. On Tuesday, Emaar Malls rival Majid Al Futtaim, which operates Mall of the Emirates, announced it was waiving rent fees for its tenants for the duration of the Covid-19 government-mandated store closures. In a statement to Arabian Business, it said it is keen to help retailers retain working capital while the shopping malls are closed. The coronavirus has sunk the global economy into the worst crisis since the Great Depression, International Monetary Fund (IMF) Chief Kristalina Georgieva last week, with growth set to turn sharply negative in 2020. Source: Arabian Business (https://bit.ly/2Kn39HO)
Coronavirus: The Dubai Mall to reopen in Ramadan The iconic Dubai Mall has announced it's reopening date after shopping centres got permission to resume operations partially from Ramadan. Taking to social media on Thursday night, Dubai Mall said that it will open its doors on April 28 after taking all the necessary precautionary measures to prevent coronavirus spread, and ensure everyone's safety: The health and safety of our customers, employees and tenants remains our top priority. At this time, we are undertaking extensive preparations in order to be able to safely re-open and welcome you back from the 28th April, between 12 noon and 10pm. For now, our doors will remain closed as we prepare for your safe return. For essential services updates please visit The Dubai Mall app for further information. We look forward to welcoming you back soon and would like to wish you a blessed Ramadan Kareem. Source: Khaleej Times (https://bit.ly/3cUjC2l)
COVID-19: UAE approves decisions on reducing water and electricity bills of businesses The UAE cabinet chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved a series of decisions that benefit subscribers of the Federal Authority of Water and Electricity and seeks to support retails, hotels and industrial sectors. The move is part of the UAE's efforts to support businesses affected by the COVID-19 pandemic. The cabinet approved a decision to reduce water and electricity bill of shopping malls, commercial shops, hotels, hotel apartments, and plants, by 20% for a period of 3 months starting from April 2020, with a total amount of Dh86 million. These commercial and industrial facilities will also benefit from 6 months payment deferral of water and electricity connection's installments, and 3 months freeze of service reconnection fines, which
COVID-19: Local Economic Departments in UAE to explore possibility of re-opening commercial centres
varies from AED3,000–5,000, starting from April; in addition to waive the 20% electricity connection's administrative fees for the period of 3 months effective from April. Earlier this week, the cabinet approved Dh16 billion additional economic stimulus to support the local economy, in addition to the stimulus packages announced by Abu Dhabi, Dubai and the Central Bank, which amount to a total of Dh126.5 billion. Source: Gulf News (https://bit.ly/33R8DU7)
Bahrain Extends COVID-19 Preventive Measures to Ramadan Bahrain’s circuit breaker to choke off the spread of the coronavirus will be extended to Ramadan, which is associated with extra piety and devoutness as well as a large family and social gatherings while existing measures will be reinforced. Preventive measures announced by the Government Executive Committee at a meeting chaired by Crown Prince Salman Bin Hamad Al Khalifa on Tuesday included limiting Iftar (breaking fast) to small family gatherings and refraining from hosting public Iftar banquets and from the public distribution of Iftar packages. Social restrictions included refraining from organizing or attending Ramadan Majlises and Ghabgas (the late dinner hosted by families, companies and institutions) and from holding celebratory events such as Garagoon. Kiosks usually set up to accept Zakat Al Fitr (the charity taken for the poor and needy a few days before the end of Ramadan) will be replaced with electronic platforms and applications for the collection and distribution of Zakat Al Fitr. The Government Executive Committee overseeing all measures taken to combat the spread of the virus said that all movie theatres, commercial sports gymnasiums, fitness studios, swimming pools, and centres for recreational activities will remain closed until May 7.
The ban also covers shisha cafes, hair salons and non-essential medical services provided by private health clinics. Restaurants, tourist facilities, and locations serving food will be limited to external orders and delivery services and the first hour of grocery store openings will be dedicated to the elderly and pregnant women. Commercial and industrial enterprises providing goods or services directly to customers will be limited to online sales and deliveries. Gatherings will remain limited to a maximum of five individuals and face masks are to be worn by all citizens and residents in public. The committee said that people should stay at home as long as possible and should leave home only when necessary. The Crown Prince stressed that safeguarding the health of citizens and residents remains the Kingdom’s top priority and that the success of Team Bahrain’s efforts to contain and eradicate COVID-19 rely on the whole community adhering to official public health guidelines. “We reiterate the importance of following established public health guidelines that have been issued to preserve the health and safety of citizens and residents during the holy month of Ramadan and beyond,” the Executive Committee said. Source: Gulf News (https://bit.ly/2XYuTui)
The Ministry of Health and Prevention, MoHAP, and the National Emergency Crisis and Disasters Management Authority, NCEMA, have directed local economic departments to study the possibility of reopening commercial centres in consultation with their partners in the private sector, provided that all relevant precautionary and preventive measures will be pursued. In a statement on Thursday, MoHAP and NCEMA said that the proposed study will take into consideration addressing the needs of the public as well as the national economy while ensuring the public health and the safety and well-being of the society. Source: Gulf News (https://bit.ly/2VubxeV)
Restaurants to operate at 30% capacity on re-opening with 6ft between tables In new guidelines and protocols for reopening of malls and high streets released by Dubai Government, F&B outlets must also use only disposable, individually wrapped plastic utensils, dishes, and packages, while tables and chairs have to be cleaned with 75% alcohol after each use. F&B dine-in will be required to hang a red tag on the front door to indicate the number of customers allowed in, with tables six-feet apart. The number of customers allowed in an outlet will be based on four-feet per customer. According to the release from Dubai Economy, all business must be on standby for an official announcement on reopening and timings to be released ‘shortly’. Wholesale and retail trade including malls and F&B outlets are ranked as of the highest importance to the economy and will open again in stage one of the plan, although no exact timeline is given Source: Caterer (https://bit.ly/2VAgjI5)
UAE Combats Coronavirus: Abu Dhabi to re-open bus services by 6am on Saturday Abu Dhabi will re-open bus services by 6am on Saturday, 25 April, the Department of Municipalities and Transport said on Wednesday. The department said it would conduct a 48-hour sterilisation campaign of public bus services from Thursday morning. This is part of intensive efforts by UAE authorities to help curb the coronavirus Source: Khaleej Times (https://bit.ly/2xHsf1v)
RETAIL PEOPLE . APR-JUN 2020 .07
NEWS BRIEF
Coronavirus: Inside the new field hospital at Abu Dhabi National Exhibition Centre Carrefour UAE portal turns into online marketplace
A new 1,000-bed field hospital at Abu Dhabi National Exhibition Centre will ease the pressure on medical services and help to flatten rising coronavirus cases. A dedicated workforce has been pressed into action to swiftly transform the sprawling 31,000 metre space Adnec into a facility staffed by 150 medics. Hospital wards had been set up by Wednesday, with curtained-off individual cubicles constructed and beds moved in, ahead of the first patients being admitted. The new facility has been built by Abu Dhabi's public hospital operator Seha on the orders of Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, along with another field hospital in Mohamed bin Zayed City. Dr Anwar Sallam, Chief Medical Officer at Seha, said the new field hospitals would serve patients who are stable or suffer from mild symptoms, allowing Abu Dhabi's main hospitals to focus on more critical cases. “The main purpose of increasing our capacity is to admit the stable and mild cases to these places and reserve the main hospitals to care for the acute and critical cases,” he said. “We are like any other place in the world, 80% of the cases will be mild and 20% will need advanced medical care at a hospital-level so we are putting this into consideration.” “Ideally, we need to admit all the cases to ensure that they are going to receive the treatment, especially as we know that many do not have the ideal circumstances to isolate themselves.” To isolate, you need your own room and bathroom and many do not have this luxury. It is a good gesture from the government to make this available so people can receive their medication, be looked after, and be under the care of professionals at the early stages of the disease.” Once they complete the treatment then we repeat their testing and they are tested twice and if it is negative in between 24 to 48 hours then they are discharged.” All the medical staff at the field hospitals will be drafted in from Seha facilities. “We are actually climbing up the curve and no one knows when we will level off - but we are very well prepared and can take care of complicated cases in hospitals,” said Dr. Sallam. On Tuesday, Sheikh Khalid bin Mohamed, Chairman of the Abu Dhabi Executive Office, visited the facilities at the National Exhibition Centre and in Mohamed bin Zayed City. Sheikh Khalid also inspected plans for a new Dubai facility, which will be the emirate's second field hospital. The 29,000 sq metre centre in Dubai Parks and Resorts, will open by the end of the month. It will have room for 1,200 patients and be staffed by 200 medics. The centre in Mohamed bin Zayed City, opposite the industrial area of Mussaffah where tens of thousands of workers are being screened for free, will be completed in the first week of May. That hospital will be able to admit 1,200 coronavirus patients and be staffed by 200 medics. Earlier this month, Adnec agreed to waive costs for the running of the new NHS Nightingale Hospital constructed at ExCeL London, which it owns. “The health and wellbeing of the people of the UAE is our shared responsibility, and we are prepared to play our part,” said Humaid Matar Al Dhaheri, Adnec's chief executive. “We are honored to partner with Seha and the Department of Health Abu Dhabi to launch the field hospitals as an effective addition to the country’s initiatives to safeguard our community, and thank all those involved in the nation’s response to Covid-19.” Source: The National (https://bit.ly/2VOzUTz)
08. RETAIL PEOPLE . APR-JUN 2020
The Carrefour UAE portal has been upgraded into a full-scale online marketplace, which means that it will now be competing against the likes of Amazon and Noon. In the initial push, some Majid Al Futtaim’s mall tenants have already joined the platform, including Borders, LUSH, Tavola, Arabian Oud and Jacky’s. (Last week, tenants at The Dubai Mall were given the option of selling through noon.com) Majid Al Futtaim mall tenants who have signed up for the new marketplace get commission-free transactions during April and 30 days free last-mile delivery. Commissionfree transactions will remain in place throughout May. “Through this Carrefourenabled marketplace, we are replicating our traditional shopping model, where grocery retail and lifestyle brands are brought together in one location and customers can access everything they need,” said Alain Bejjani, CEO at Majid Al Futtaim. Source: Gulf News (https://bit.ly/353O0EO)
COVID-19 Response: UAE banks use 60% of funds under Central Bank liquidity facility The UAE’s banking sector is actively participating in the Targeted Economic Support Scheme (TESS) by supporting individuals small and medium-sized enterprises (SMEs) and other private corporates affected by COVID-19 pandemic, according to Central Bank of UAE (CBUAE). The CBUAE data showed utilization of allocated funds, which have nearly doubled in a one-week period reaching over 60% of the Dh50 billion liquidity facility offered under TESS, which is equivalent to Dh30 billion total utilization of allocated funds. In the first week since the announcement of TESS, UAE banks were down 30%. The scheme was launched on March 15. Source: Gulf News (https://bit.ly/357dEIE)
Coronavirus: Saudi Grand Mosque extends ban on public prayer into Ramadan The Grand Mosques in Makkah will remain closed to the public throughout Ramadan, Saudi religious authorities said on Tuesday night just days before the expected start of the holy month. The kingdom already stopped public prayers and closed mosques as part of its measures to halt the spread of coronavirus. The Kingdom has 10,484 confirmed cases and 103 deaths. Ramadan is expected to begin later this week but religious authorities around the world have urged worshipers to remain home through the holy month so as not to spread the virus. Saudi Arabia announced in March that the grand Mosque would be closed to worshippers after suspending Umrah pilgrimages. Source: The National (https://bit.ly/2VVlD7Q)
DAFZA launches incentive package for Free Zone companies The Dubai Airport Freezone Authority (DAFZA) on Sunday launched a set of economic incentive packages, which aim to support companies based in the free zone. This initiative will ensure business continuity across various sectors and will help them mitigate the severity of the economic impact and precautionary measures the world is facing during this time, DAFZA said in a statement. Financial Relief: The initiative includes postponing lease payments for up to three months and facilitating the financial payments into easier monthly instalments. It supports retailers operating within the free zone by exempting them from lease payments for a period up to three months. The free zone will refund the security deposits on the leased spaces and labour guarantees to companies and will also exempt new companies from the registration and licensing fees. DAFZA will cancel companies’ fines as well. “By launching this package we aim to reduce the impact of this crisis on businesses. We stand in solidarity with our companies to overcome the challenges caused by the global spread of Covid-19. This initiative reflects our commitment to providing the ideal environment for them to ensure their business continuity and to help develop and grow their operations despite
the fluctuations and global economic conditions,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA. Preventive measures: DAFZA has taken a set of preventive measures to limit the spread of the Coronavirus within the free zone. A committee for emergency and crises has been formed and is working around the clock to monitor and follow up the operations of the free zone during this difficult period. The committee’s role is to ensure also that all instructions and directives issued by the Ministry of Health and Prevention and other authorities are applied in the free zone. The free zone has implemented a 100 per cent remote work system within the authority’s buildings based on electronic and smart applications and advanced technical infrastructure that the country and the free zone provides. The free zone urges its companies to implement the same system in order to preserve the health of their employees and their vital business community. DAFZA closed all external facilities within the free zone including the food courts and other facilities. The free zone launched a comprehensive campaign to clean and sterilize all streets, buildings, facilities and warehouses within the free zone. Source: Gulf News (https://bit.ly/354noDN)
Emirates Airline will not be resuming normal passenger flights until the second half of the year. Their new updated schedule details regular flights will return to normal in July at the earliest. While the Dubai airline was set to relaunch normal passenger flights next month, it appears reservations for all flights between May 15 and June 30 have now been suspended. However, as the COVID-19 situation is everevolving, things may change. The airline is currently offering limited flights from Dubai to London, Frankfurt, Tunis, Jakarta, Chicago, Taipei, Algiers, Manila and Kabul, in order to repatriate residents and visitors to return to their home countries. Meanwhile, Emirates also recently announced it is putting more measures in place to protect its employees and customers alike against the coronavirus outbreak. All staff members who come into contact with passengers – this includes cabin crew, boarding agents and ground staff – will now be provided with personal protective equipment (PPE) to wear. As well as gloves and a face mask, PPE includes a protective disposable gown to wear over uniforms and a safety visor. Source: Emirates Woman (https://bit.ly/2Sa6BKe)
Partially lifts restrictions, keeps Makkah curfew
including remote learning and a nationwide bracelet tracking programme rolled out across the country. Meanwhile, Bahrain’s national electronic wallet BenefitPay announced a 1,257 percent increase in the number of remittances through its Fawri+ service during March– worth BHD103 million ($273m).
Saudi Arabia joined nations around the world in gradually loosing restrictions that were put in place to prevent the spread of the coronavirus. The kingdom partially lifted a 24-hour curfew in all regions except Makkah and will allow resumption of some commercial and economic activities, state-run Saudi Press Agency reported. • Curfew lifted from April 26 to May 13 from 9am to 5pm. • 24-hour curfew will be enforced in Mecca City and the some previously isolated districts. • Commercial and economic activities allowed in wholesale and retail stores, shopping centres. • Construction companies and factories allowed to resume their activities without restrictions on time from April 29 until May 13. • Restrictions remain for beauty clinics, barber salons, sports and health clubs, recreational centres, cinemas, beauty salons, restaurants, cafes and other activities determined by the relevant authorities.
Source: Arabian Business (https://bit.ly/3aGgmWK)
Source: Arabian Business (https://bit.ly/358BrrV)
Bahrain Launches Virtual Mall in Kingdom For Shoppers Bahrain has launched a virtual mall to enable shops to continue serving its customers during the ongoing global Covid-19 outbreak. The mall.bh website features a range of products from more than 100 companies operating in the kingdom including fashion, homeware and electronics. Several major brands are set to participate in the virtual service, with the government-run website not charging any fees to retailers amid physical store closures to combat the spread of coronavirus. Zayed bin Rashid Al Zayani, Bahrain's Minister of Industry, Commerce and Tourism, said: “This will enable companies to continue offering their products to consumers. It has been designed by the Ministry and will provide its services to companies for free." The initiative is the latest digital offering from the kingdom to help combat the ongoing global health crisis, with solutions
Emirates flights will remain grounded until the second half of the year
RETAIL PEOPLE . APR-JUN 2020 .09
NEWS BRIEF
News Brief I N T E R N AT I O N A L
Post-COVID: Hermès earns $2.7 Million in sales after a flagship store in China reopens As life slowly returns to normal in some parts of a post-lockdown China, most of its citizens are beginning to pick up from where they left off—including wealthy shoppers. While luxury fashion players stayed strong and rallied together to contribute to the fight against COVID-19, there was no doubt that the industry would suffer due to the pandemic. But it seems like there is hope after an Hermès boutique in China reportedly made US$2.7 million on its reopening day, according to a WWD report. The store in question is located in Guangzhou, a city in Guangdong, which also happens to be one of China’s most affluent areas as well as its most populous region, based on data from 2018. Various items were purchased at the French luxury boutique in Guangzhou’s Taikoo Hui shopping centre, including tableware, shoes, furniture and leather goods. But that’s not all, rare bags were also delivered to the standalone 5,500 sqft Hermès store that spans two levels. Among the rare bags was a diamond-studded Himalayan Birkin, said WWD. Eager shoppers had apparently taken to Chinese social media platforms to showcase how they went straight from quarantine to shopping, posting photos
Mass. toy factory now making 50,000 face shields a week, says Gov. Baker
of their experience in the reopened store along with their new acquisitions. One of the shoppers claimed to have spent over US$142,000 in Hermès that day and had also purchased a black crocodile Birkin 30. No official confirmation has been made by the French maison but it is believed that this could be the highest revenue made in a single day for a boutique in China. Source: Thailand Tatler (https://bit.ly/3cOmkGz)
E-commerce businesses back in action as China gears up for online shopping festival Nearly 90 percent of China's 3.5 million e-commerce platform-based businesses have resumed their operations so far this year, despite the effect of the COVID-19 outbreak, said the Ministry of Commerce on Saturday. As the online sales sector has played a prominent role in driving social consumption in China, the country will launch an online shopping festival to boost consumption from April 28 to May 10, said Cai Yudong, Deputy Director-General of the Department of Electronic Commerce and Informatization under the Ministry of Commerce. Over 109 e-commerce platforms will take part in the festival, selling a great variety of quality goods ranging from agricultural products to electronic devices and daily necessities. The festival is jointly launched by the Ministry of Commerce, the Ministry of Industry and Information Technology, the State Post Bureau and the China Consumers Association, he added. China's retail sales of consumer goods declined 19 percent year-on-year to 7.86 trillion yuan ($1.11 trillion), data from the Ministry of Commerce showed. The country also sees cross-border e-commerce as a bright ray of hope amid gloomy global trade, the State Council, China's Cabinet, announced plans earlier this month to establish new pilot zones for cross-border e-commerce, support the processing trade and host an online version of the 127th China Import and Export Fair, or the Canton Fair the country's signature semiannual export-promotion event, to minimize the pandemic's impact on global trade. Source: China Daily (https://bit.ly/2y3hBC6)
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A Massachusetts factory that normally makes some of the nation’s most beloved board games, including Monopoly, Risk and Candyland, has pivoted to making personal protective equipment for health care workers on the front lines of the coronavirus pandemic, Gov. Charlie Baker said Saturday. The Cartamundi-owned Hasbro factory is making 50,000 face shields per week for hospitals in Massachusetts and Rhode Island, the Republican said after a tour of the East Longmeadow facility. Making games and making personal protective equipment have the same goal, President and COO John Frascotti said. “It is our job to make the world a better place for children and their families,” he said. Baker also said an investigation into the high number of COVID-19-related deaths at the Holyoke Soldiers’ Home is progressing, but there is no timetable for completion. Former Federal Prosecutor Mark Pearlstein has “free reign” to conduct his investigation, Baker said. Source: Boston (https://bit.ly/2yNXBUo)
Retail outlets in France could open May 11, but not bars and restaurants The French government wants all retail outlets other than restaurants and bars to be able to reopen once a nationwide lockdown is lifted on May 11, Finance Minister Bruno Le Maire said on Thursday. The government has said that not all businesses will be able to go back to work immediately once the lockdown, in place since mid-March to rein in the coronavirus outbreak, ends. “We want all retailers to be able to open on May 11 in the same way out of fairness,” Le Maire told France Info radio, adding that it remained to be seen whether that would be possible nationwide or only region by region. “I would only set aside restaurants, bars and cafes,” he said. The retail sector is among the hardest hit by the government-imposed closure of nonessential activities in place since mid-March. Source: France 24 (https://bit.ly/3aG2awU)
At the heart of the fight against Covid-19 is the manufacture of masks and gowns by our Maisons The LVMH Group and its Maisons have been actively engaged since the outbreak of the Covid-19 crisis to help battle the spread of the virus. The Group’s teams are showing their spirit of solidarity through aid for medical personnel, production of essential materials, donations, and a host of other initiatives. Louis Vuitton, Christian Dior Couture, Loewe, Celine, Kenzo and Fred have all begun making or supporting production or distribution of large quantities of alternative non-surgical face masks to help protect against contamination, as well as hospital gowns. Source: LVMH (https://bit.ly/358RGW3)
Walmart mandates masks for associates; Ramps up hiring (again) Walmart has begun requiring store, distribution and fulfillment center associates to wear masks at both its Walmart and Sam’s Club locations in another effort to help slow the spread of the coronavirus. Employees can bring their own masks or they’ll be provided with one after passing a daily health screen and temperature check. The company is also encouraging consumers to wear them. “Although most state and local governments do not mandate the use of face coverings in public settings, the CDC has reported that recent studies show a significant portion of individuals with the virus lack symptoms and can transmit the virus,” said John Furner, President and CEO, Walmart U.S., and Kath McLay, President and CEO, Sam’s Club, in a statement. “With this knowledge, we believe it is simply in everyone’s best interest to use masks or face coverings to curb the spread of this disease.” In addition to extending its emergency leave policy through the end of May for associates who miss work because of COVID-19-related issues, the company has committed to hiring an additional 50,000 new employees. This is on top
of the 150,000 it’s hired since its initial commitment a month ago. Hires will primarily be temporary associates in such roles as cashiers, stockers, personal shoppers, fillers and pickers. The company also intends to add more fleet drivers. “Of the associates hired, approximately 85% are being hired into temporary or parttime roles,” said Donna Morris, Walmart Executive Vice President and Chief People Officer. “While many of these associates want temporary employment that serves as a bridge during this time, we also expect others to convert to permanent roles.” Source: RIS (https://bit.ly/3bLbnpq)
The Airport Authority Hong Kong (AA) is using several latest disinfection technologies including a full-body disinfection channel and cleaning robots in the Hong Kong airport to reduce the risk of the Covid-19 (coronavirus) spread. The disinfection channel is an enclosed facility similar to a telephone booth in size where users can complete disinfection and sanitizing procedures in 40 seconds, the AA said Sunday in a statement. Autonomous cleaning robots have also been used to ensure thorough disinfection of public areas and passenger facilities at the airport. The cylindrical robots, equipped with ultra violet light sterilizer and air sterilizer, operate round-the-clock in public toilets and key operating areas in the terminal building, the AA said. The robots can move around autonomously and sterilize up to 99.99% of bacteria in its vicinity, including both the air and object surfaces, in just 10 minutes. Source: The Star (https://bit.ly/2xORsqR)
Groundbreaking drone startup delivers medicines and groceries to vulnerable people self-isolating because of Coronavirusy
IKEA says visitors returning fast to re-opened shopping centres in China and Germany Furniture brand IKEA’s main retail vehicle said on Friday shoppers were returning quickly to its shopping centres after it reopened three in China last week, and one in Germany this week - it is first four to open after closures due to the coronavirus. Ingka Group, which besides most IKEA stores also owns 45 shopping centres in Europe, Russia and China, said visitor numbers were back to 70-80% of year-ago levels in the centres in China, indicating shopper confidence was recovering rapidly. In the centre in Germany, footfall was at 63% with 40 of 57 tenants open for business. Ingka said in a statement it had taken various measures to support tenants during closures. “In addition to waiving rent and service fee charges for all tenants, Ingka Centres has invested in measures to drive e-commerce traffic to their sites, and to help retailers work together to share homedelivery and click-and-collect services,” it said in a statement.
HK Airport operates full-body disinfection channel, deploys cleaning robot in Covid-19 fight
Ingka said it planned to open more centres in the coming days. It has 35 centres that are currently temporarily closed. A majority of IKEA stores are or have been temporarily closed in recent months. A few stores in Germany and Israel, as well as the one in Wuhan, the city in China where the coronavirus was first discovered, reopened this week. Other stores in China reopened last month and Ingka has said business is back to normal in those. Source: Reuters (https://reut.rs/2VACnlA)
An Irish startup is launching a trial of the world’s first drone delivery service that will transport medicines and groceries to elderly and vulnerable people in self-isolation, in yet another sign that the coronavirus pandemic is accelerating technological solutions that have been years in the making. Manna Aero CEO Bob Healy said in a statement, reported by The Times: “This is targeted at the elderly and the vulnerable; people who have been told to stay inside their homes. What they need are critical food supplies and prescription medication, and that’s what we will deliver.” Source: Forbes (https://bit.ly/2V9ZVwk)
Ramadan 2020: New York City to provide 500,000 free halal meals New York City will provide 500,000 free halal meals for Ramadan, according to Mayor Bill de Blasio. Announcing the programme, de Blasio said on Thursday: "One of Ramadan's most noble calling is to feed the hungry, it is a crucial part of how the holiday is celebrated, to remember to be there for those in need." Since mosques that provide meals for the poor to break their Ramzan fast are not able to function because of the Covid-19 restrictions, the city will ensure they will get halal meals, he said. The halal meals will be a part of a wider free meals programme run by the city to help all those impoverished by the massive loss of jobs due to the Covid-19 crisis. De Blasio said that although the halal meals will be available through the 435 distribution sites, 32 of them in areas with large Muslim communities will be the focus of the programme. Source: Khaleej Times (https://bit.ly/3cTD2Vf)
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COVER STORY
The Family Business New Ideas and Concepts to the World of Specialty Retail
Chelsea Lauren Walsh
Rachel Walton
A homegrown family retail business made in Dubai and in the UAE market for over 15 years. The Retail People Magazine had an opportunity to interview the mother and daughter duo behind Pop Retail and Upscale Retail. Rachel Walton is the Co-Founder and Partner, while her daughter, Chelsea Lauren Walsh is the Retail Development Manager. Rachel and Chelsea take us back to the time they started their business, how their family business grew over the years and made a name in the industry.
Rachel and Chelsea, can you give us a brief background about yourself? RW: I am from Manchester in England, and travelled a lot with my daughter finally settling in Dubai which I call my home. When I am not working, I like to read, cook, cycle and look after my two English bulldogs. CW: I was born and raised in Newcastle UK, but traveled the world with my mum at an early age from Turkey to Canada then back to the UK. We settled in North Yorkshire where I studied in an all-girls school. My retail journey started at the age of 16 where I had a part-time job working for Next LLC. I got promoted by the age of 17 to run the Children’s wear department. After that, I went on to work for Google where I held a managerial position in the Google Adwords Department. This made my retail journey as marketing/
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advertising an integral part of my retail career. My main interests are keeping fit and active. In challenging times, I like to destress in the gym. I also like to read. I’m an advocate for self-education. There are never too many books you can read or too many things you can learn.
Why did you choose Dubai to pursue your career? RW: I was invited to Dubai, whilst attending MAPIC in Cannes, by Al Futtaim Group Retail to provide specialty leasing solutions for Dubai Festival City which was still under construction. When that project opened, we were given opportunities to work with other developers in the UAE. I spent the following 18 months travelling back and forth from the UK to Dubai. It was clear that Dubai had big plans for the future. My family and I decided that we wanted to relocate permanently and take advantage of the opportunities on offer.
CW: I visited my Mom on a holiday in 2011 and never returned to the UK. There are so many opportunities here. After spending nine years of my twenties in Dubai, I feel this place has really shaped me as a person both in my career and emotionally. I am very grateful for that.
In 2007 you established the business called Upscale Retail LLC. What inspired you to build your own business? RW: The speed of development in Dubai was such that I felt to be able to keep pace I would have to be in Dubai permanently. At that time, I was employed by an established American company and working from their offices in Sheffield UK. I approached my employer to setup an office in Dubai and they were not willing to do so. My belief was so strong that I decided this would be the right time to establish my own company in Dubai.
Have you experienced any challenges along the way? RW: Sure. For us challenges create opportunities. In Specialty Leasing, there are always new retailers looking to access the market and landlords looking for experiential retail and innovative activations.
What fascinates you about Specialty Retail? RW: The creativity and passion of these small businesses who take their ideas and search for avenues to bring their creations to the public is inspiring. We give them the opportunity to reach their audience and make their ideas a reality. They bring such enthusiasm and individuality to properties. Specialty retail has the ability to create excitement by experimenting with unique offerings within a mall. We can utilize the seasonal retail periods to refresh the offering and showcase the very latest trends. It is very rewarding to see a start-up retailer opening their very first outlet with us and then helping them grow into a successful retailer.
In 2008 when the recession hit the market, it was a very difficult time. You saw something that others didn’t see. You were able to be of service to others and help them in their businesses. Please share your story. RW: We have to accept that markets will have highs and lows, but regardless of this, retail will always carry on, it just evolves. We saw that landlords were finding it very difficult to lease their inline retail and therefore there were lots of hoardings in malls indicating vacant units. Hoardings have a very negative impact, not only on the property, but also on the trading retailers within the property. We saw the need to activate these vacant units. We began designing a small format modular
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COVER STORY
store which could sit behind the lease line and span the whole front of the vacant unit. From this, we created the Pocket Shop and established the company POP Retail to take this idea to the landlords. The response was very positive. With the relationships we had built from Upscale Retail, we began filling our Pocket Shops with our specialty retailers.
Who were your first clients? What was their initial reaction when they saw your concept? RW: It is very difficult to say which were our first clients as we rolled out Pocket Shop programmes in many malls. I can say that the reaction was always one of amazement as the transformation from the hoarded unit to the active Pocket Shop is very quick. The modular system allowed us to transform these units overnight into active trading retailers bringing their exciting products to the property. We were extremely proud when we saw that Pocket Shops were meeting the objectives we had set. Since then we have been able to use the Pocket Shop module to fulfill several different applications. Whether it be new mall openings, existing malls
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refurbishments or properties who just happened to have a few vacancies, Pocket Shops soon became the go-to solution. To this day, we have never had a bad meeting as our concept continues to tick all the boxes for both landlords and tenants alike, it’s a win-win solution.
As your homegrown family business grows, you developed your own leasing team. At this point, Chelsea joined your team. Chelsea, what was your specific role and how was it working with your Mom? CW: At the time of my joining, the market was at the start of the downturn, which leads to having lots of retail space and no tenants. My main role was to develop and grow our database in Specialty Retail by building long lasting relationships with our clients. It’s been so much fun, there are some amazing and talented entrepreneurs in UAE! My mom and I work well together, almost like Yin and Yang. We have a very different approach and perspective, but the end goal is still the same. We are constantly learning from one another. We bounce great ideas off each other.
become them. But the most important factor is the relationships we build and maintain. I pride myself on that.
Tell us about your most recent project you are working on? CW: With the current market conditions many vacant units exist. We have many different projects. I would say our biggest project currently is DIFC Gate Avenue where we have many shops currently trading. It’s a beautiful property and this one is very close to my heart. I have really enjoyed working with DIFC and continue to do so.
Looking ahead, where do you see the most scope for growth? RW: Community Centres, Mix-Use Projects, Smaller Format Stores, and Homegrown Multi Concept Stores, all offer plenty of growth opportunities.
What are your immediate plans for the future? Are you looking to expand into new markets? RW: We still have many large markets to serve here in the UAE. We have looked into expanding into new territories, but we are still waiting for an opportunity that is right for us.
Greatest influencers in your life? RW: I have been fortunate to meet some amazing people in all walks of life who influence and inspire me every day and may that continue. CW: I would say, Mom. Her strength and tenacity inspire me. Also my daughter, I want her to watch me continue to grow as a successful businesswoman and inspire her to have the courage to do the same. Family is very important to me, after all, you are the company you keep. Also my tenants, they inspire me every day.
In the UAE, who are your major competitors? What is your edge to stay competitive in the market both locally and globally? RW: Competitors are healthy in all industries, but I have to say that we don’t have competitors that can do what we do. Any contractor can build a shop, but what we offer is so much more than that. POP Retail is an end-to-end solution. For landlords, not only do we build the shop, but we also source the retailer and manage that retailer through the term of their occupancy. For the retailer, we assist them with documentation along with any fit-out/signage requirements. Above all, as a family business, we care about our clients and we enjoy the opportunity to nurture our relationships and bring viable leasing alternatives to our landlords. CW: We have a secret formula which makes it very difficult for people to imitate. Relationships are everything. In the nature of our business to be successful, you have to think like both a landlord and a retailer. You have to
To lighten the mood, Worlds Mother’s Day will be celebrated in second week of May. Chelsea, what do you want to say to your mom? CW: My Mom is an inspiration and the most amazing mentor. We have such a strong bond both in business and personally and that enables us both to do great things. She set up a business from scratch, just an idea, and that is really all it takes. Thank you Mom!
What does success mean to both of you? RW: Success for me is knowing that we have played a role in how retail is evolving. Retail will continue to evolve and we want to always be a leader in this industry. CW: Success for me is watching my tenants flourish from an idea, a start-up, growing a sideline business into a successful fully-fledged retailer. Nothing makes me prouder than that. I feel responsible because we have enabled that growth. Being in service to others, we have helped somewhat in their success. We are pleased to see this happen with our retailers’ day in and day out. Together we play a role in that. For me today, that is success.
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BUSINESS ENTREPRENEUR
What makes a Family-Owned Business Last The brother and sister family businesses with strong family support since 1989
F
amily-owned businesses are crucial to the UAE economy in both employment and contribution to the country’s GDP. Family businesses in the UAE represent a large part of the business community. In 2019, they employed between 70% to 80% of the regional workforce, generating in excess of $100 billion in annual revenues. Family businesses are a mainstay financially in the UAE and contribute significantly to the growth of the economy in the GCC and beyond. These businesses have wide-ranging investment interests from small to large. Family businesses also tend to be superior performers regionally as they remain flexible and pivot where necessary to fill vibrant niches in the economy.
Maryam Al Noori created and successfully launched Worood Flower Boutique then created the thriving wedding company where she is now known as one of the best wedding designers in the UAE and GCC. Maryam is also a judge on the Ro’ya Dubai Chamber, Dubai Business Women Council.
The Retail People Magazine had an animated discussion with local family business owners Maryam Al Noori and Mohamed Al Noori, a sister and brother team, and family business owners of two successful and thriving businesses in the UAE. Maryam is the Managing Director of Worood Flower Boutique and Weddings. Mohamed is the Chairman & Managing Director of Italco International. Two businesses with strong family support since 1989. Worood Flower Boutique provides Maryam Al Noori the freedom to be an artist with flowers and create bouquets of beauty. She shares the immense source of beauty through floral arrangements. Creating living art using the finest flowers from
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Mohamed Al Noori is Chairman of Italco International, running this business since inception in 1989. Now retired from senior roles in the Dubai Municipality, Mohamed has always been a strong supporter of the MECS+R and the retail industry.
around the world is the cornerstone of the enduring success of Worood. By supplying the creative lush floral designs for many weddings including high-profile in the UAE, Maryam has created a hugely loyal following. Her involvement is from start to the minute details of the event, from floral arrangements, room decoration, dramatic lighting techniques, exquisite table centrepieces, gifts and anything required to deliver modern, luxury weddings and events across the UAE. Maryam and her team are responsible for delivering events that create a
luminous and phenomenal piece of art. All her creations create long-lasting beautiful impressions and have earned her the reputation as one of the best wedding designers in the UAE. Mohamed started Italco International in 1989 to be at the forefront of the interior design industry locally and regionally as a joinery woodworking business for the creation of exclusive designs for residential and commercial interiors. The philosophy and motto of Italco International are perseverance, patience and perfection. Sourcing the finest materials from suppliers across the globe, Italco employs top in-house design teams using state-of-the-art CAD software. With expert knowledge gained through decades of experience, the team at Italco International creates masterpieces for the homes and businesses of the GCC. High quality retail fit-out is Italco’s strength. The five-step program of engaging the customers' trust and loyalty is the key strength of Italco. These steps include direct customer engagement, custom design initiatives, top-ranked workshop production, experienced best in class installation and most importantly the ongoing customer care and after installation follow up. Managing the expectations of royalty though to residential developers and commercial businesses, Italco International is a leading business in the GCC and a very successfully run family business.
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SPECIALFEATURE REPORT
18. RETAIL PEOPLE . APR-JUN 2020
SPECIAL REPORT ON
COVID-19
Impact on Global Retail David Macadam CEO, MECS+R
RETAIL PEOPLE . APR-JUN 2020 .19
SPECIALFEATURE REPORT
G
rowing up as a young boy in my eyes, my grandfather was the wisest man in the world. He taught me something that has stuck with me for many decades which perhaps is still relevant today. My grandfather said ‘Nothing is as bad as it seems NOR as good as it seems.’ Perhaps in hindsight, we will learn the scientific truths about COVID-19. How well has the world managed or has not managed the pandemic which has swept through virtually all countries on the planet? Together in this world, we face a common crisis. Everything we know and have known has changed quickly. COVID-19 has impacted everyone on the globe. Sweeping through the planet, it has disrupted countries and communities. The impact on the global economy has been catastrophic. Countries have shut down services, altered normal business operations to focus simply on the control of the spread of the COVID-19 virus and caring for those affected. We are all in this pandemic together. We are all responding as best we can. We have collectively put in place preventative measures, washing our hands often, lockdown, quarantine, social distancing, staying at home, working from home and other measures to protect families and businesses. We try to ensure that we follow government guidelines as they are updated.
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At times, we are all worried about the virus. We are worried about ourselves, our friends, our families and our colleagues. Some of us are stuck overseas or banned from flying home to be with our families away from home and loved ones. All of us are having to adapt to social distancing and self-isolation. Curfews have become a new way of life which is a breach of our basic freedoms. In recent days as an organization, through our digital platform, we have updated you with latest news, giving advice and providing support. With every message, we have been as transparent as possible about the difficulties everyone is facing.
The facts remain that even though we are 100% focused on addressing the challenge, no one can control the current events as they unfold. In the past weeks, everyday seemingly created a new playing field and a new series of challenges. Events continue to change at a rapid pace. Up until February, this year businesses were happily and successfully serving thousands of customers in their retail stores, cafes, restaurants throughout the GCC. Progressively across all our markets, governments have locked down shopping centres, retailers, food and beverage outlets. Virtually all retailers except essential services such as food stores and pharmacies to protect the public have been closed. In the GCC, it is reported that today less than 1% of shops are open. Our retailers tell us revenues have plummeted by greater than 95% and even more for some retailers. Expenses and cost base to the end of March have remained at the same levels. The business conditions we are in today, with high expenses and almost no revenue, are not sustainable for any business anywhere in the world. At some point in the future, everything will become much better. Growth will return to the market. Sadly, none of us know when that will be.
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SPECIALFEATURE REPORT
Taking no action is not an option. When the favorable business climate does return, businesses must be in a position to carry on. For survival, companies and businesses must act now. Many companies have put together new business plans to reduce costs. The new business plans will affect us all. Companies must review every area of their business to effect savings. Removing unnecessary costs while reviewing and perhaps renegotiating all contracts. Stopping recruitment and allowing vacant roles to remain unfilled. Reduce orders from
suppliers and supply chains in the short term until the shops reopen. Every cost line must be reviewed for every business to survive. Reducing operational costs is a first major step but it is not the end and will not be enough. Retailers must be able to bounce back, rebuild sales and grow in the future when the COVID-19 eventually passes through the global population. People and staffing costs must be reduced with the goal to protect jobs and benefits for the long term. Tough measures in the short term, but they need to be fair and balanced for success in the future. What many of us have read which is relevant comes from digital online news sources, international media, regional media, local media and countless other organizations such
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as the World Health Organization (WHO). The following is a partial summary of the current state of affairs. 30 January 2020, WHO declared Coronavirus as a Public Health Emergency of International Concern. On February 11, WHO names the new Coronavirus disease as COVID-19. At the time of writing this article as of 22nd April, globally around 2,545,768 cases of COVID-19 have been reported in 210 countries and territories, resulting in approximately 176,860 deaths and 687,083 recovered.(1) Cases of people testing positive for COVID-19 continue to accelerate exponentially through many countries, especially the US. The exception is China where new confirmed cases of COVID-19 are slowing. Second and third waves of the COVID-19 are also likely to extract a toll on the human population globally for many months to come. On a brighter note, it is reported that Emirates Airline will slowly recommence flights with approval from global authorities from late April or early May. Perhaps with a slow return to business by Emirates Airline, the financial fortunes of the GCC will begin to improve. Be safe by the tried and tested public health measures. Washing your hands frequently. After
coughing or sneezing, when caring for the sick, before, during and after you prepare food, before eating, after toilet use, when hands are visibly dirty or after handling animals please wash your hands. When you return from outdoors, when you touch public door handles wash your hands. Social distancing is defined as staying at least two metres from others in public areas. These simple ordinary measures are very effective at fighting COVID-19. Follow the recommendations from local authorities. Look out for one another especially those most vulnerable and those in isolation.
Please stay safe. Look after your families, your colleagues.
(1) Source: Worldometer (https://bit.ly/2JZ7hha)ly/2JZ7hha) RETAIL PEOPLE . APR-JUN 2020 .23
SPECIALFEATURE REPORT
What is COVID-19 Y
ear 2020 has been a surprising year for every one of us. Nobody expected COVID-19 would create a big impact globally. With each passing day, COVID-19 continues to spread globally. Health experts such as WHO and government officials have encouraged the practice of social distancing to help stem the outbreak. People have adjusted their routines, whether that means working from home or getting together virtually with colleagues or friends, in order to stay connected while maintaining a safe distance. The Retail People Magazine curated some information and updates from official sources.
What is Coronavirus Disease (COVID-19) Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illnesses. The best way to prevent and slow down transmission is to be well informed about the COVID-19 virus, the symptoms and how it spreads. Protect yourself and others from infection by washing your hands or using an alcohol-based rub frequently and not touching your face.
Virus spread from close person to person contact through droplets
Virus may spread through airborne when tiny droplets remain in the air
COUGH
Symptoms may develop within 14 days of exposure to the illness
FEVER
Only designated lab test can diagnose the virus
SHORT OF BREATH
How can we Avoid to get Infected by COVID
Do not sneeze in the palm of your hand
Sneeze into your forearm or elbow
Do not touch your face with hands
Wearing mask and gloves
Wash your hands frequently
Stay at home
2M
Keep the distance with other persons
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Changes or Effects due to COVID-19 • Schools have been closed and introduced the e-learning platform and online exams.
• Travel & Tourism, Hotels & hospitality along with bars and restaurant were affected • F&B and restaurant were not allowed to open, but only provide delivery services
• Public Transport services were shut down or offered limited taxi services only • Lots of events were postponed or cancelled • Gatherings in big groups in religious institutions for prayer activities, weddings and birthday parties are not permitted.
• Cinemas, FECs, Leisure & Entertainment sector has been closed • Gyms, Public Parks, Museums, Cafes, Restaurant and bars have been closed • Most of the Shopping Centres worldwide issued a shortened opening time, but later on, was asked to close, except for supermarkets and pharmacies
• Unemployment rate went up since many establishments were forced to close to avoid the spread of the virus • Work from Home was introduced in the private and public sectors globally.
• Travel Restrictions were imposed
• Landlord Challenges due to deferred rental payments from tenants • Lockdown has been imposed in several countries where pandemic was declared
The Positive Side • More time spent with family and friends • People are more connected with one another through the use of phones, emails or face-to-face video conferencing • Some landlords have offered a reduction in rental fees to their tenants • Groceries, pharmacies, online services excel during this time • Banks have offered three months deferred payment schemes to those who have loans or mortgages • Governments from different countries have offered aid or support to those individuals who have been affected by COVID-19 • Celebrities and well-known company brands have pledged financial support to the government and to those who have been affected. • Webinar and Virtual Events are being introduced globally • Forbes posted that a number of CEOs outside the UAE sacrificed their salaries. In the UAE, Emaar’s Mohammed Alabbar took a 100% pay cut due to the economic crisis fueled by the COVID-19 pandemic
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SPECIALFEATURE REPORT
Helping retailers comply to government directives while keeping customers calm and informed in unprecedented times Retailers are experiencing dramatic changes to the way they run their businesses due to the current global crisis triggered by COVID-19. An increased demand for critical products due to countries being locked down and the government directive to practise social distancing, can cause confusion and distress for shoppers. Using clear informative signage in-store can be vital to maintaining a safe and calm retail environment Javier Lopez, General Manager Vertical Solutions EMEA, OKI Europe Ltd.
I
n increasingly unpredictable times, retailers need to be ready to react quickly to sudden market changes and emerging trends. The spikes in footfall that supermarkets, grocers and pharmacies are currently experiencing something many retailers could not have prepared for. As customers flock to stores to pick up essentials, retailers will be concerned about the safety of customers and staff as well as reassuring customers through clear communications to keep a sense of calm in these challenging times. In-store visual communications are critical to helping retailers adhere to changing government regulations. For example, in the current climate, the use of floor stickers can help retailers ensure shoppers observe the required social distance from staff and other customers throughout the store, particularly while queuing to pay for their goods. Furthermore, hanging signage can help customers navigate the aisles quickly to locate the daily essentials they’re looking for, while shelf and free-standing signage can communicate sudden changes in policy e.g. purchasing limits as well as product stock levels as effectively as possible. As items quickly disappear from the shelves, customers need to know when those essentials will be back in stock. With government advice changing on a daily basis combined with the fluctuation in the availability of goods, the ability to quickly adapt signage is key to maintaining a calm and safe shopping environment. However, many retailers often lack the flexibility to be able to quickly update in-store signage.
Visual communication on demand to reassure customers through a crisis Typically, retailers must wait for in-store signage dispatched from head office or rely on the service of an external print supplier. This can mean long lead times creating a delay in how quickly each store can place vital and relevant communications on the shop floor. Being able to react quickly to sudden changes in demand means retailers need instant access to resources that enable a diverse range of signage and communications to be printed quickly and easily in store.
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Printers that have been designed specifically for the retail market allow retailers to quickly adapt to situations as they unfold by printing a diverse range of highly effective visual communications in-store, on-demand. Compact printers such as OKI’s award winning C800 Series have been optimised for busy stores where space is often at a premium. These fit into back offices and are user friendly enough for shop floor staff to quickly manage print jobs with limited interruption to their other duties and without intervention from other members of staff.
Powerful retail ready printers for your daily in-store signage needs Despite their small footprint, retail-ready printers can produce print signage in a wide range of sizes, formats and weights, serving a diverse range of needs in retail environments. This can include hanging directional signage to guide shoppers around the store or window stickers highlighting the daily opening hours, as well as free-standing banners up to 1.3m in length, shelf signage and wobblers alerting shoppers of stock availability and policy updates such as purchasing limitations. Printers that support printing on waterproof media, including floor stickers, allow retailers to help customers adhere to social distancing regulations, by placing stickers with the appropriate gap between them, safeguarding the wellbeing of both customers and staff.
Positivity in print In turbulent times when unexpected events occur such as COVID-19, retailers are often the unsung heroes that are put under pressure by customers and the government to provide support to the nation. Customers can quickly become overwhelmed, disoriented and frustrated. The ability to communicate clearly to them through signage printed on demand and in professional quality allows retailers to ensure their store remains a safe and peaceful environment for shoppers. To find out more about OKI’s Retail Solutions for supermarket and grocery stores visit www.oki.com/me/supermarkets
Shopping Centres: In the Post COVID-19 World Rashiq Muhamad Ali Creative Director at Limelight
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n all likelihood, the subject of conversation while you’re reading this will be the COVID-19 virus. It seems to have disrupted life to a degree unrecognized by all those living today. Make no mistake, the history of this century will likely be defined as either Before-COVID-19 and After-COVID-19. There has never been a better time for architects or designers to be proactive and foresee changes that may take place in the built environment. Our primary responsibility is to the people who occupy and use the spaces that we design.
Space requirements and distancing: Today’s space standards and regulations are adhered to with hesitation by most designers. The general mantra has been to get in as many people as possible into space as would be permissible by regulation. This is applicable from circulation space, FLS calculations, retail unit space calculation and F&B seating calculation to the choice of escalator and elevator allowances. These criteria will change. More space per person will be encouraged and we can expect regulations enforcing the distances required. Furthermore, there may be strict enforcement of how many people can be inside a space at any given point of time based on these space calculations. You can expect to see supermarkets and shopping malls controlling their numbers with enhanced tracking tools.
Materiality: Conclusive studies have indicated that the COVID-19 virus stays alive longer on some materials than others. More studies will be conducted and a certain level of rigor will be enforced to ensure that only certain materials can be used where there’s a high probability of contact. Architects and interior designers will be given a list of approved materials that can be used in high contact areas such as handrails, door handles, push plates etc. Air quality: HVAC engineers can expect to see new regulations that require airflow to be filtered more often. There will be a bigger requirement to bring in fresh air to a given space than what’s currently been prescribed.
No touch: The implementation of sensors will come on strong. We can expect to see sensor-related hardware taking precedence in a shopping mall. From doors to hand wash taps and soap dispensers. Contact-less payments will be encouraged and can even be rewarded. If something need not be touched, then it doesn’t have to be. Sanitizer requirements: There will be hand sanitizer dispensers placed at every entrance of a mall. Most retail units may also consider this within their units. Human behavior is altering and it’s already become second nature to use these hand sanitizers in public spaces in the midst of this C19 outbreak.
Security: Public places will be equipped with thermal cameras in order to scan the public for anyone with a temperature spike. These issues are now no longer a mere observation but rather an issue to investigate. The onus of isolating a probable health concern is now on the shoulders of the mall security. With the new social and spatial changes that have been sweeping the world, there’s a renewed desire to stay safe and those who provide it will succeed. Commercial businesses that provide solutions to these concerns will gain the trust of consumers. Designers who integrate the needs and requirements of the new normal will be in demand. Developers and landlords committed to safety will be preferred properties and command higher rents. Consumers, as always, will vote with their wallets and reward those who prioritize their safety above convenience or cost. The one thing history has taught us is that every crisis has a beginning and end. When this crisis passes, and it will, the world will be a slightly different place and will require retailers, designers and developers to show even greater creativity, understanding and commitment. There will be new opportunities, challenges and mandates but ultimately, Success will come to those most able to adapt.
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SPECIALFEATURE REPORT
Retail Development Industry Post COVID-19 Thoughts Phil McArthur, CSM, CRX, CDP, is the Founder and Chairman of McARTHUR Retail Development Specialists, a Past President and member of the Middle East Council of Shopping Centres and Retailers (MECS+R) since 1996. He shares his insights about the Post COVID-19 period, which can help the shopping centre and retail industry. 1.
Operating retail destinations will regain market share slowly after COVID lock downs. Statistics from China indicate today about 30-50% traffic levels from the Pre-COVID period. The China Chain Store and Franchise Association is reporting that 60% of large mall operators are witnessing sales dropping from 30-70% for the first quarter of 2020. Certain tourist destination that had reopened have now recently closed due to fears of a second wave of COVID-19. On a positive note, regionally, Bahrain allowed shopping malls and some stores to resume business from April 9, becoming one of a handful of countries to roll back measures intended to curb the spread of coronavirus. Under the new guidelines, shop workers and customers must wear masks inside stores. Retailers are to limit the number of shoppers allowed inside their businesses, and if a line forms, stores must enforce social distancing outside. Droves of shoppers were reported returning to their favourite malls, making social distancing management a big challenge for mall operators
A safe-distancing enforcement officer wearing a red armband watches over customers lining up to buy take-away food at a food court in Singapore on April 18, 2020. (Photo Credits: TIME)
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2.
With a large decrease in retail sales, many new retail developments globally will be delayed in oversaturated markets. In some markets, small independent retailers and restaurateurs will be hard-pressed to survive. The retail giants with multiple concepts and thousands of locations will have to reduce their overall operations to try to get to break even or curb the losses. That means closing stores. Without retailer demand, new projects will stall or downsize and developers and lenders will be forced to wait for the market to rebound.
3.
Once the dust settles, and the retail and mixed-use development community understands the shifts in the market, unique new projects will take over market share from a tired old malls and retail formats. More mixed-use projects with significantly less retail will emerge. The need for new destinational occupiers will be strong, as well as professional entertainment attractions and food and beverage operators. The necessity of hosting huge variety in fashion categories
Image Credit: IMG Worlds of Adventure
4.
will be reduced partially due to the increase in market share going to e-commerce. Open-air centres for communities will make good sense as the customer’s awareness of clean and safe-shopping environments grows.
8.
Air travel may have a challenge bouncing back. Fewer tourists will arrive in the near future making it more challenging for the retailers. Markets heavily dependent on tourism will feel the pinch.
Retail destinations will have to up their cleaning, sanitation and operational game dramatically. Clean and sanitary parking lots, entry doors, common areas, and particularly restrooms, parenting rooms and other similar guest amenities will become demanded by the customers. Mall operators will engage with the customer more deeply than even before. Customers will need to trust their local malls to be clean, sanitized and professionally managed. This will be a major challenge for many retail destinations globally as most have been guilty of poor sanitation standards. In the MENA region, MAF Shopping Malls and Emaar Malls have proven that 5 star maintenance, cleanliness and sanitation are possible and a daily standard requirement.
9.
Most retail development owners are tied to the banks, pension funds and private equity. All are impacted by the COVID-19 pandemic as their clients lose sales, rent and retailers. No lender can turn its back on the development community as these assets will take cooperation and solid planning to return to acceptable levels of return and risk.
5.
Mall owners can only survive and profit if the mall tenants are financially healthy. Without retailers, mall owners only have buildings. Rent is a function of sales and during a crisis when there are no or little sales, mall owners and their lenders must find a way to provide relief for their tenants. It must be done now and it must be done in the spirit of partnership. Although the relationship is legal, unless the mall owners cut new deals and collect rent completely in relationship with sales generated, it won’t make commercial sense. Rent has always been a percentage of sales, just calculated by the square meter/foot.
6.
Existing malls need to prepare now for repurposing space due to potentially high vacancies coming and low demand for retail space. In markets, like KSA, where retail space per capita is low, opportunities will still be there.
7.
Shopping habits for food will change and new supermarkets and hypermarkets will improve their design. Better hygiene and more careful shopping habits with social distancing could be the norm for the foreseeable future
10. E-commerce has grown dramatically in the past 2 months and in certain categories will leap forward in market share over physical retail. E-commerce is not perfect and people will eventually return to the malls and their attractions. There will be a new balance between physical shopping and online buying. Mall retailers and owners will have to work very hard to regain customers and market share.
Challenges will always be present, but as the saying goes, “Tough Times never last, Tough People Do!”
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INSIGHTS
The Leader in E-Commerce Amazon now has digital information on all customers who have ever purchased any product from the Amazon web site. Armed with this digital history of every customer, Amazon can now through artificial intelligence (AI), direct past customers who are returning online, to products which they believe would fit the profile of these past customers’ purchases.
David Macadam CEO, MECS+R
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mazon has been written about for decades. Their success as the global retail phenomenon cannot be overstated. The Retail People Magazine is the voice of retail in the MENA region. Our article about Amazon is a summary from many sources including the website QZ.com. Our intention with this article is to update you on Amazon in 2020. We will leave it to you to make your own conclusions after reading this article because nothing is black and white in the retail world and change is always in motion. E-commerce has fundamentally altered retail. The value proposition for physical retail stores has changed dramatically. In the US in 2019, approximately 42 million people were employed in the retail industry in physical shops. Retail is a very complicated and people-intensive business. The retail peopleintensive in the US in 2019 is a USD 6 trillion industry inclusive of all forms of online and bricks and mortar retail. Amazon is much more than a retailer. Retail sales within Amazon account for 57% of the annual revenue in the company however the average margin on product sales is less
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than 3%. The highest growth areas of Amazon include subscription services such as Prime, third-party seller fees, advertising and Amazon Web Services (AWS) which is the lucrative cloud computing segment. Nate Sutton as the Associate General Counsel for Amazon confirmed that in 2019, Amazon accounted for less than 1% of the retail globally and around 4% of retail sales in the US. In terms of size, Walmart is far larger, being nearly double the financial size of Amazon. Walmart reported sales of $510 billion in the US and international markets in their fiscal 2019 financial report. Amazon reported approximately $233 billion in roughly the same period. The growth rate for the e-commerce industry in the US continues to expand however at a much slower pace. E-commerce in 2019 in the US market in total accounts for approximately 11% of the retail sales in that market. Bear in mind that the total value of all retail sales in the US in 2019 is valued at approximately $6 trillion. Amazon is a dominant force in the e-commerce space in the US retail industry. Within the entire e-commerce market in the US, Amazon occupies an estimated average
of 38% of product sales for the various categories of the e-commerce market. When each product category is analyzed in greater detail below, it is clear that Amazon dominates several retail categories.
Amazon’s share of US e-commerce 2019 Books, Music, Video
66.7%
Computer & Consumer Economics
45.3%
Toys & Hobby
45.5%
Office Equipment & Supplies
42.8%
Furniture & Home Furnishings
34.4%
Apparel & Accessories
30.4%
Health, Personal Care & Beauty
29.7%
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INSIGHTS
Amazon occupies the largest following for its e-commerce portal in the US. More online searches are taking place as customers turn to Amazon as a search engine when it comes to retail than Google. Lorna Franklin in her article written for MOZ.com in 2019 estimates 54% of product searches in the US are originated on Amazon.com. The Amazon portal is the largest search engine in the retail world for researching retail products, far surpassing Google. The Amazon portal for e-commerce is the go-to primary and dominant source for online searches globally. Efficient last-mile delivery is crucial and means everything for the success of online retail. Amazon reports that 41% of the total cost to move goods is spent in the last mile delivery. Known in the online industry as the ‘last mile problem’ these costs impact the overall profitability of Amazon retail sales. Amazon has worked and succeeded with many initiatives to create a seamless experience for the customer. Customers as members of Prime, which is one of the last-mile Amazon divisions, enjoy free one or two-day delivery. In 2019 Amazon had 150 million subscribed Prime members globally which indicated the Amazon brand loyalty with the massive success and customer following which Amazon enjoys. Revenues of $19.2 billion were generated through Prime subscriptions in 2019. In the US competitors of Amazon are able to deliver the products ordered online usually in three days. Other benefits include access to Amazon’s streaming services which include libraries, TV shows, movies, original content and music. Exclusive discounts including products in Whole Foods, early
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access to deals before non-subscribers, exclusive products, free two hour delivery on groceries in selected cities, free access to select books and magazines, free access to video games through Twitch Prime are provided through the Prime Membership. Prime membership now is part of the Amazon experience and contributes significantly to the annual revenues of Amazon.
An area of a large expense for Amazon is the return policy for goods such as clothing, jewelry, accessories and other products delivered to the customer but which are determined to be unnecessary, not required or for some reason unsuitable. Some categories of products purchased at Amazon have an estimated return rate of greater than 40% to 50% further lowering the overall margin on products delivered. In a bid to encourage the use of Alexa the voice for the shopping platform of Amazon, currently, products purchased from Amazon using Alexa will be delivered and returned with no charge across all product categories. Amazon currently has over 606 million products offered online. The number of products added to the website daily is estimated at 1.3 million products. With the massive scale and daily growth of products added to the Amazon offering, many brands cannot afford to ‘not’ be in the Amazon line up. High listing fees (third party listing fees), brand denigration, failure to differentiate the benefits between similar competing products have further eroded the manufacturers' margins on products offered and sold on Amazon. Famous brands such as Nike, Levis and others have chosen not to list on Amazon due to margin erosion on their products and loss of brand identity. Amazon has also increased private label sales which include rebranding products with Amazon labeled products that provide products at discounts over other similar generic products. With the growth of private label sales, Amazon expands product sales into generic products such as batteries and other products where they can undercut the pricing of other brands such as Energizer or Duracell. With the dominance in online searches for anything retail and the sale of millions of products online daily, Amazon now has digital information on all customers who have ever purchased any product from their web site. Armed with this digital history of every customer, Amazon can now through artificial intelligence (AI), direct past customers who are returning online, to products which they believe would fit the profile of these past customers’ purchases. Greater control of all transactions gives Amazon the power to direct more sales of more products to more customers.
Ease and convenience are the underlying elements for successful retail. Amazon has taken this experience very seriously. Amazon is a complete end-to-end service where all barriers are continually identified and removed as customers purchase a product. Amazon keeps customers returning because the service, products and the overall retail experience meets or exceeds expectations. The teams at Amazon work daily to create even greater efficiencies, utilize AI strategies with big data and improve the customer experience. With access to greater volumes of customer data and the creation of more novel forms of service such a drone delivery, Amazon will retain the status as the industry leader in online sales for the foreseeable future.
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SHOPPING CENTRE UPDATE
How to Design a Shopping Mall Successful analysis of a shopping mall planning must consider a number of critical characteristics. These are elements that are not easily reflected in the designs of an architect, such as location, positioning, catchment area, tenant mix, and the effects of ever-changing retail trends and consumption patterns. In short, to succeed a developer must temper a mall’s planning with a deep understanding of retail functionality, consumer behavior and new retail trends before getting started. Hussam Raouf Hussam Raouf is international speaker and advisor on the topics of Mega Real Estate Developments, Cities planning and policies, Shopping Malls design, development and construction, Culture Master Planning and innovation labs. He is the former head of Emaar Shopping Malls Development and currently runs his own Management Consulting Firm. hussam.raouf@monthill.com
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n the summer of 2011, after a long day of mall planning workshops, I left my office exhausted and frustrated. None of the ideas we’d been presented with were even close to what we – a shopping mall developer – wanted to achieve, and while driving back home on Sheikh Zayed Road, I was trying to work out exactly why. Perhaps it was simply my high expectations of a fully integrated and sophisticated design that was the problem; or maybe it was the complexity of mall planning and the multi-disciplinary involvement in the process that had been a sticking point for the consultants who we’d seen that day? Either way, out of my frustration came inspiration, and as soon as I arrived home I opened my laptop and started work on an educational course entitled: “The Shopping Malls Planning Principles’’. Years spent working with some of the world’s best mall developers, along with my architectural background, had taught me a great deal about how to design a shopping mall, and it was information I wanted to impart. From store layout to understanding the supply chain and delivery routes, to planning the sightlines and retail mix to using analytical and data and customer patterns; building shopping malls is a science. When the course was complete, I was able to take it around the world and teach everywhere, from Dubai to Hong Kong. I’m happy to say that it was wellreceived and, in this article, I’d like to share parts of that mall-planning course with you.
The Planning Principles of a Shopping Mall The design brief is an all-important document to a mall planner, as it explains the developer’s clear vision of the mall type and retail mix that it’s trying to build. More specifically, it carries a clear understanding of the demographic characteristics and household size of the people that it aims to welcome through the doors on a daily basis.
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It might surprise you to know that the list of mall types is many and varied, ranging from the Neighbourhood Center to the Mega Mall, the Lifestyle Mall to the Power Center. But it’s important to realize how much impact the way we live today has on the decision to build a certain mall. For example, new consumption patterns and urbanization have resulted in a rise in the number of Hybrid Malls we see today. When it comes to layout, then consumer circulation is the most important aspect for the planner and developer to consider. How easily can your consumers find what they’re looking for and move around the mall? How prominent are the anchor stores and are they positioned well to draw maximum footfall? Shopfront clarity is another major consideration. How visible are they across different mall levels? It’s crucial that people on the ground floor can see shops located on the first floor, and the same for all other floors. It’s also worth considering how we position vertical transport systems (lifts and elevators), allowing ease of access between levels without blocking the sight of stores. It’s these clear lines of sight that will drive people’s decision to move and shop for longer.
But as well as discovering how we move around a mall, we also need to consider how it makes us feel. For the perfect example, I recommend just five minutes in The Dubai Mall’s Fashion Avenue. Take in its subtle aromatic fragrance, its refined music and lush carpeting and I defy you not to feel your inner glamour-puss rushing to the surface, such is the clear hierarchy of mall space that has been created there. The integration of surrounding assets – in a mixed-use development – as well as with the surrounding environment would also heavily influence mall layout and circulation. The transition from mall connected hotel to the mall itself, then on to an external park or outdoor coffee shop should be as smooth as possible. Meanwhile, the flow of visitors from other asset classes to the mall should be designed to direct traffic into a variety of different areas and levels, encouraging equal circulation and above all else, ease. The same rules should apply to transport areas, whether that’s public transportation hubs, private cars or drop-off areas. Thanks to big data analytical research, mall operators can now develop an accurate profile of the people shopping at their properties. They can learn about their shopping habits and preferences, what they engage with while travelling around the mall and their footfall patterns. Their transactions will also offer a huge amount of data on their shopping
routes. All of this data amounts to, not just information on how to maximize revenue and customer satisfaction, but also patterns and predictions that will allow a developer to build its next mall even more successfully.
Getting the Perfect Layout From having one central circulation or corridor with two anchor stores at either end (what we call the dumbbell format), to the double racetrack format, allowing customers to flow around the mall in a loop that ends at its starting point, there are a variety of mall layouts that can be used. But what is it that informs this? Well, it can be the land size and shape, the mall sizing and massing, typography, surrounding road orientation and all manner of other considerations that will influence the decision. The key element to remember, however, is that in all cases, the circulation space should form natural pedestrian movement across store shopfronts, with clear sightlines and an inviting environment throughout the mall.
Dumbbell Layout
Double Racetrack layout
The location of the anchor stores should create a gravity drawing strong footfall. Anchor stores are typically located in the following way: 1. At the end of a line of shops, drawing customers past the shop fronts enroute to the anchor store.
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SHOPPING CENTRE UPDATE
2. At a change of direction in the layout, clearly visible and which draws customers in from both directions. 3. Strategically positioned to form a focus and point of punctuation in a large mall layout. 4. On a vertical level, we position the anchors at both ends of the mall. So while the supermarket forms an anchor at one side of the ground floor, the cinema – entertainment center – anchors the other side of the first-floor circulation. That way we can create even movement across the entire mall.
Anchor Location
The Hybrid Shopping Experience But, of course, we live in a diverse world filled with a variety of influences, trends and habits. To cater for the plethora of shopping types and entertainment options that exist sideby-side in today’s market, we have the hybrid center. Here you will find a combination of open and enclosed shopping, different asset classes and a new wave of usage options. You could describe it as the best of all worlds; a mall that features co-working spaces, is able to host events and exhibitions and is complimented by a huge array of entertainment and technology-themed anchors. Today, more than ever, shopping mall developers are aware of the need for flexibility in what they build, allowing for a mall that can respond to the ever-changing consumption patterns and retail trends it will face. This desire for a more fluid design is also partly a response to what happened during the financial crisis of 2009/10, and the shopping malls that went through costly repositioning
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exercises following the global downturn. I remember working on a mall construction that suddenly had to convert a big part of its fashion stores to incorporate other uses, such as food and beverage. We even had to split a few of the anchor stores. Of course, these changes weren’t cheap or easy, but they were vital in order to survive the austerity of the times. You could say that the valuable take-home from all of that was that developers formulated a more robust future-proofing strategy, developing easily converted space with the ability to merge and split stores, and avoiding a complicated and costly structural change. But it’s not only the mall interior that should be a consideration for your plans. Another element for the hybrid mall is the outdoor environment, and the ability to still trade within the summer season or winter in Europe with double-loaded stores that allow customers to flow to the stores from the mall internal circulation, or from the external outdoor areas (when weather permits). Not only that, but how do you take customers from a bright open street into a darker, predominantly artificially lit, enclosed space? In this situation, we need to ensure gradual movement through a smooth transition where contrasting environments can comfortably coexist. The subtler you make this transition, the better. With the extension of enclosed shopping centers and a general move towards the urbanization of a mall in general, it’s likely that we’ll see the regular adoption of open street environments combined with the enclosed mall environment as we move forward. But while hybrid malls are likely to be increasingly considered, we need to carefully treat their open section, ensuring that a viability through the warmer and colder months remains. The shopping Mall planning process is a complex one. It involves variety of skillsets and should not be considered a mere design task. With the current evolution of mall format, developers are engaging with new capabilities to meet – and exceed – the new consumers’ expectations Developers need to work closely with the planner and all stakeholders to ensure a successful, exciting and functional product. And while we might be utilizing the big data today in order to help shape the design and operation of a mall, we should always be reminded that data is not the destination, it is the foundation. Ultimately, the customer and customer experience should always be at the center of all our planning efforts.
SHOPPING CENTRE UPDATE
Abu Dhabi Mall
Re-beautified Look to the Future
The rising modern attraction, Abu Dhabi Mall, was built 19 years ago in April 2001 at the Heart of Abu Dhabi City, UAE. The Retail People Magazine had a great time speaking with Guillaume Darlix, Chief Commercial Officer – Retail from Aswaq Management and Services, who excitedly shared details on the re-beautification of the Mall so as to better integrate it with the capital city’s plans, focusing on its convenient accessibility for their clientele to visit, shop, dine and entertain.
A
bu Dhabi has initiated Dh8 billion plan to make the city the world’s most livable city and this includes Zahiyah neighborhood beautification. Abu Dhabi Mall has conducted a complete revamping programme to enhance its overall look and feel to provide best customer experience. This beautification scheme includes: • The food court creating a large opening towards the sea and the beach front of the adjacent hotel bringing in a bright atmosphere • The major pedestrian entrance and main atrium: the new black & white flooring creates an elegant and contemporary look & feel • The installation throughout the mall of new ceiling equipped with modern lighting creates a cozy atmosphere • The façade and its pedestrian access with stylish pavement, canopies, shades and landscape provided ample terraces for the food and beverages concepts • The automotive access from the city with the creation of double line entry and egress from/to the parking helped fluidify of the traffic • The additional connection from the hypermarket area to the rest of the Mall helps better distribution of the traffic
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Work in progress includes the opening of a large entrance facing the Hypermarket, creating an ample drop-off point, expected to be completed in Q4 2020, along with the addition to the existing parking capacity. One main objective is continuing to better integrate Abu Dhabi Mall to the capital city and add to its convenient accessibility for our clientele to visit, shop, dine and entertain. In line with this re-beautification program, Abu Dhabi Mall's management team is continuously focusing on fine-tuning its merchandise mix and marketing activations toward its familyoriented catchment. We are a daily and repeat clientele centric mall accommodating: • All kids’ services from daycare to gaming, trampoline and edutaining (Apple Tree, Extreme Zone, Fun City, Melodica, VOX Cinemas) • Diversified types of cuisines and Cafés (Bosporus, Café Nero, Chili’s, Cinnabon, Famous Dave’s, Gourmet Burger Kitchen, Paul Café, PF Chang's, Pizza Hut, La Brioche, Ladurée, Poke Poke, Starbucks, The Coffee Club, Tim Hortons, Vapiano, Wagamama, Zaatar W Zeit)
• Major mainstream fashion & lifestyle brands (Anotah, Go Sport, H&M, Mango, Massimo Dutti, Miss Riva, OVS, Reserved, Zara) • Both bridge (Carolina Herrera, DKNY, Lacoste, Michael Kors, Mont Blanc, Polo Ralph Lauren, Rolex, Swarovski) and value-for-money segments (Brands for Less, Daiso, Mumuso) • As well as many health & beauty options (Al Manara Pharmacy, Arabian Oud, Bath & Body Works, Body Shop, Boots, Inglot, Kaya Skin Clinic, Life Pharmacy, Lush, Mac, Silkor, Victoria Secret) Abu Dhabi Mall is an integral part of the Abu Dhabi Trade Center which encompasses close to half a million square meters of builtup area of Retail, Residential, Office and Hospitality components with a population of about 5,000 people who lives, works and stays. Abu Dhabi Mall is working on catering to the needs and aspirations of this community together with the expectations and needs of our first catchment population. Indeed our primary objective is shaping Abu Dhabi Mall as an extension of our customers’ homes by broadening the level of offering to accommodate all segments of ages and backgrounds represented within our captive and first catchments.
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SHOPPING CENTRE UPDATE
KEEPING IT Mall of Dilmunia is looking super as we gear-up to open our anchor
supermarket to the public, Tamimi Markets, paired together with their beautiful organic market concept, Natures Market. Both well-known in the Kingdom of Saudi Arabia, Tamimi Markets and Natures Market will soon offer the very best in regard to quality, variety and price points for the Kingdom of Bahrain.
Rebecca Arnold, Deputy CEO - Mall of Dilmunia
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The Bahrain Aquarium is in the final stages of preparation and is almost ready for the arrival of the sharks and stingrays, that are on their journey from Australia, to their new home here in the Kingdom of Bahrain. The Bahrain Aquarium is the first-ever four-story cylindrical aquarium inside a shopping mall and will showcase over 2,500 different species of aquatic life, providing an amazing spectacle, it will mesmerize visitors from each level of Mall of Dilmunia. It is important to highlight that we will implement informative programs and interactive experiences to help create awareness about the delicate marine eco-systems and ways that the Bahrain community can help protect coral and marine life, and some of the activities we will offer include fish feeding, diving, back-of-house tours, school visits and junior aquarist initiatives.
Funscape World is also in the final stages of testing and ommissioning. The colourful entertainment zones will offer; adventure, sports, play and ice-skating. Now the games are being installed, final touches and stress tests are being initiated to ensure the utmost in terms of safety and that the experience will be second-to-none. The Adventure Zone caters for all ages and will encourage a lighthearted competitive spirit. The activity of climbing in a group will rejuvenate drained tanks of motivation and will be a perfect way to unwind with friends and training partners, several times each week. Visitors will be encouraged to bring along friends to get involved and try-out the climbing walls, a terrific way to be inspired, garner enthusiasm and stay fit! Funscape Ice will offer ice-skating lessons, school visits, birthday parties, promotions and events. Visitors will be able skate all year-round, seven days a week and we will be catering to children and adults of all skill abilities. There is no better way to cool off and have fun, especially in the summer! Gliding (or slipping around) on our ice rink with family and friends, will surely be a highlight and skate rental will be available as well as ice-walkers for the less skilled skaters!
It will be “Game On� in our Sports Zone, where players of all ages can practice and improve upon their soccer skills! Training camps, will form part of the annual program of activities and it’ll be a high energy environment, helping to raise both mental and physical levels whilst having fun! All-year-round footy competitions will be arranged, so players can improve ball control whilst staying fit in a lively and buzzing environment. Funscape Play is our fantastic indoor play centre, that is suitable for all children, which includes a dedicated toddler area. There's so much to explore and climb under, over, down, up and round, packed to the brim with soft-play equipment, it has been designed to stimulate and challenge all ages. Aside from the entertainment zones, we will also be arranging a full calendar of events and entertainment, both indoors and outdoors, by the Dilmunia Canal and Dancing fountains. Dilmunia Mall, perfectly situated on a Dilmunia Island surrounded by pristine turquoise water, will make visitors feel perfectly at home. Mall of Dilmunia will be a destination where visitors can come and connect with their families and friends, whilst enjoying unique shopping experience and dining on the terrace by the Dilmunia Canal. Visitors and customers will be able carry-out their daily shopping needs, find that perfect outfit, grab a new gadget, catch up with friends over a coffee or tea, dine in the evening under the stars, unwind at the movies, or simply relax and watch the world pass by whilst the children have fun at play.
RETAIL PEOPLE . APR-JUN 2020 .41
FEATURE
The Dilemma: Primary Fixtures for Short Term Occupancy Creations Global Retail is a leader in the design and manufacture of leasing platforms for retail environments worldwide. The Retail People Magazine had an insightful chat with Jacqueline Patrona, Regional Manager – MENA at Creations Global Retail, where she introduced “The Weekender Pop-Up”, a simple, sleek, mobile pop-up unit that can be quickly set up and broken down for maximum efficiency.
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onvenient, flexible and efficient are the three factors behind the retail unit called The Weekender Pop-up. As the retail climate is evolving, and there is a growing need to accommodate Pop-Up experiences, The Weekender Pop-up has an expandable footprint, easy to transport and folds up for easy storage. Common area merchants usually see two types of lease (License Agreement) deals: one, where the vendor provides their own landlord approved RMU/Kiosk, or the landlord provides the merchant with one as part of the lease. Creations Global Retail has heard the story more than they can count…” I need something cost-effective, looks good, durable, mobile and can be stored.” Once again, Creations innovates for timely solutions, The Weekender Pop-up. It is a mobile, metal, collapsible fixture that runs either on a rechargeable battery, or traditional AC power. It provides both landlords and merchants maximum flexibility, integrates with almost any finishes and color palette, and is truly affordable. How does it work? When fully deployed, the footprint is 193cm x 122cm x 203cm. When collapsed for transport and storage, the footprint is 61cm x 122cm. Because the Weekender’s components are first treated with Zinc primer and then finished with the highest-grade powder coat, the unit is equally suited for both interior and exterior locations. It can be rolled into a location and opened up in ten seconds, and voila, ready for business. To power the pylon light, plug into an outlet, or if you don’t have access to a local outlet, use the battery function which can operate the unit for 12 hours continuously. The Weekender Pop-up has something for everyone: low capital expense and easily attained ROI, it’s incredibly agile providing the perfect testbed for brand managers. Merchants that operate during short holiday windows, or on weekends only can now operate from a premium, professional fixture instead of a draped folding table. When collapsed for storage, The Weekender Pop-up is easily tucked away in a space as small as a janitor’s closet making it the darling of both specialty leasing program managers and mall managers alike. The Weekender can be adorned with virtually any color palette and finishes. Better still, because Creations Global Retail is a full custom design and fabrication resource, we can adapt this amazing platform to meet the most demanding client requirements.
As the retail climate is evolving, and there is a growing need to accommodate Pop-Up experiences, The Weekender Pop-up has an expandable footprint, easy to transport and folds up for easy storage.
42. RETAIL PEOPLE . APR-JUN 2020
Shopfront – A Brand that
Transforms Space into a Retail Theatre Hilda Moussallem, Executive Partner and Project Manager at Just Fit Out has over 22 years of experience in concept planning and designing creative layouts. She has been an integral part of the success of business in subdivisions, interior design and client-orientation. In this article, Hilda shares with The Retail PeopleMagazine, the benefits of designing a creative shopfront and what it can do to your business.
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uring my 19 years of experience in Retail Design and Delivery, I have enjoyed having a number of retail interior design projects coming through my reviews. From perfumes and cosmetics to fashion, it has been great to collaborate with a number of retail owners in the UAE to help their visions come to life. Through my past and current experience, I have noted a number of considerations specific to retail interior design that I would like to share with you to help ensure your project turns into a success. In addition, there are a few points that apply to all commercial interior design projects that should be considered in combination with what we are about to share today. Another important factor when looking at retail interior is how you would like customers to move through your space. There are a number of different approaches depending on the experience you wish to create. At Just Fit Out, this is one of the essential things we are doing, designing an experience! GCC retailers typically focus on interiors (for obvious reasons!), and forget that the exterior of your store should also be considered.
The storefront may be what entices someone to visit you in the first place, so make sure to pay some attention here as well. Signage and window displays will play a big part in this. This is what I don’t see in most of the shopfront due to 90-100% transparency which will never portray any brand identity. Some of the reasons are landlords’ guidelines, client cost saving, lack of knowledge by the retailer, and finally franchisers underestimating Arab countries. Below are the four benefits to the business where a designed or creative shopfront can do: •
Increase the sale
•
Gain better publicity
•
Help the environment
•
Aid the local economy
Creativity allows you to express yourself, promote thinking, reduces stress and anxiety, allows people to enter the happy zone and have fun, and finally lead to a feeling of accomplishment and pride.
A Shop window is a valuable marketing asset where brands transform spaces into a retail theatre
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FEATURE
Novo Cinemas puts Customers and Colleagues at the heart of their CX Strategy
Since 2014, Novo Cinemas has been a pioneering entertainment choice, offering visitors an unforgettable cinematic experience, bringing more than movies to the big screen. The Retail People Magazine enjoyed speaking with Debbie Standford-Kristiansen, CEO of Novo Cinemas, who explained the importance of customer experience and placing a team at the epicenter of delivering a great experience every time.
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he new battleground in marketing is customer experience and yet it is as old as time. The challenge is to use new technologies, understand how consumers are evolving and what their perception is about customer service. Customer experience is not simply the way a company talks face-to-face, it impacts deeply into the business from an invoice being sent out accurately to relevant communication being sent in an email. We live in an era where the customer has been trained by global giants such as Amazon, to only receive information that suits their individual needs. This is no different in cinema. We track our customer journey from when they are first deciding what entertainment opportunity to choose, until they have left having enjoyed a film of their preference. Debbie Stanford-Kristiansen believes, “We live in a complex environment in the Middle East and by this, I mean we are serving multiple nationalities content, which not many other countries face. Our cinema content must include all nationalities, and this is wide ranging from Bollywood to Hollywood and everything in between.� In order to hold true to our positioning, A Great Time Out, we need to take into consideration this populations preference from food to cinema content. As such we have created a wide-ranging food menu which we regularly innovate and films which are language specific – Arabic, Malayalam, French, Hindi, Filipino, American and more. Further to meeting customer needs, everyone prefers different marketing channels from social media to outdoor and even word-of-mouth. Our customer is at the heart of everything we do, and we have in place a strategy across all departments to ensure we are meeting and even exceeding their expectations. The most important part of our strategy is our team. With their dedication and commitment to service, we value their contribution which has led to us winning more than 12 awards in the past year. They are the epicenter of delivering a great experience every time. We have numerous projects launched to ensure they are valued and heard, including direct access to the CEO. We have a dedicated newsletter to share their personal and professional triumphs with each other. We live in a fast-changing world and what is hot today is redundant in six months. We constantly revisit our strategies and list to our customers
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Our customers are at the heart of everything we do and ensuring their experience exceeds all expectation is our top priority and clients to ensure we are taking their valuable feedback and acting upon it. For more information visit www.novocinemas.com or download the Novo App for iOS or Android.
FEATURE
The Future is Here
Vikram Malkani Founder & CEO Albex
Bharatesh Suvarna Partner & CSO Albex
In this fast-paced environment, we see how technology keeps on advancing. The Retail People Magazine had a great time speaking with Vikram Malkani and Bharatesh Suvarna from Albex. Here, they lead us to explore the new technological trends in retail, from AR to Holograms, understand its relevance for the industry and enjoy its benefits by integrating these tools into a strategy. Albex 360 introduces the perfect chance for the brands to be more interactive with their customers.
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et’s think about how technology has been slowly changing our lives, making them easier and comfortable. We have stopped noticing it because it’s a part of who we are now. Almost all industries have adopted it, and their processes have changed as well as their products and services. Retail is no exception and we’re here to tell you about its evolution. Virtual Reality is here to stay, giving us the chance to recreate spaces just by wearing a pair of glasses. The clearest example is video games where we can feel like we are part of the virtual scenario. But now some brands are also integrating it into their advertising strategy, making the interaction with their customers more dynamic and attractive. We can’t imagine a better way to sell a car than making you feel like you are already driving it!
Another relevant tool is Augmented Reality, which is here to revolutionize the retail industry by giving stylists, brands and designers the opportunity to promote their creations and let people try them even before they are in stores. Magic mirrors and apps are definitely a good investment for stores when it comes to its display selection. It’s the new way of interacting with their customers while allowing them to personalize their selection of products. Think about how it changed the beauty industry: customers choosing the makeup they like, trying it on and sharing pictures on social media. Imagine the benefits of collecting all that data. Also, who would have guessed one day we were going to be shopping for digital clothes? Yes, clothes that we will never physically wear but our online version will do. What started as a crazy idea ended up becoming the new way to include technology into retail and fashion, proving that we need to push our limits further.
46. RETAIL PEOPLE . APR-JUN 2020
In a globalized world where we all can be connected; holograms are finally here. Because it was great to be able to make calls, then video calls, but now getting the feeling of seeing the person standing in front of us even if located on the other side of the world is just life-changing. It gives a futuristic experience to customers, but to retailers, it represents a flexible solution that can be customized according to the season without building new stores every campaign. It’s time for retailers, designers, visual merchandisers and all the actors of the industry to start adopting these trends and enjoy the benefits of creating new experiences for people. At Albex 360, we are bringing technological solutions that would not only give a competitive advantage to the users, but also change the way business engages with the customers and will attract new prospects with a strategy that puts customer attributes, affinities and behaviours at the core of every business process and decision.
Intelligent Retail In the retail sector, where margins are tight and competition is high, companies must keep abreast with the industry trends to win in the global competition. The Retail People Magazine spoke with Hans Schreuder, Co-Founder of enaible, who explained how his company is helping retailers to reach their potential and boost their productivity, using the magic of AI.
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he face of retail hasn’t just changed, it has become almost unrecognizable. Years ago, before terms like ‘click and collect’ and ‘mobile wallet’ had made it into our vocabularies, the right combination of product, price and placement was the formula for success. But the world is a different place today. The arrival of e-commerce has chipped away at brick-and-mortar storefronts and given rise to unprecedented competition and a new breed of customers who don’t just desire speed, choice and convenience, but who expect them all rolled into one. If that weren't enough, the challenges faced by retailers has just become a whole lot greater - thanks to COVID-19. As we speak, the rapid spread of the coronavirus is forcing stores to shut down shop and divert consumers online in their droves. The long-term impact of these unprecedented times remains to be seen, but the need to preserve employment in the retail sector is evident, not just today but for years to come. This new reality is testing the ingenuity and adaptability of retailers to their limits, and in the MENA region, the challenge can feel all the greater. Here, economic uncertainty and regional unrest continue to depress consumer confidence and pile the pressure on a sector that expects low single-digit growth this year, though in light of the virus now sweeping the globe, it is likely to be much lower. Meanwhile, beyond the confines of retail, something else is troubling sectors and industries worldwide, and it poses more of a threat to business than weak oil prices or changing consumer habits: growth in productivity – the life source of companies and national economies – is worryingly flat. In the industrial era, productivity growth averaged at around 3%. Today, it is failing to reach even half that rate. In a sector like retail, where margins are tight and competition high, companies can little afford to take a productivity hit, yet few have found solutions to the problem. Worse still, some don’t even recognize that the problem exists.
enaible work closely with retailers across the Middle East, United States and beyond to help them reach their potential and exceed it.
In part, the factor behind this lack of proactivity is the very same factor that has allowed productivity gains to fall by the wayside in the first place, and that is management. In the U.S. alone, poor management reportedly costs the economy anywhere from $319 billion to $398 billion in lost productivity annually, while we at enaible estimate that 645 million hours of productive time are lost each year. Fortunately, the solution is within reach, and it all starts with data. As we speak, companies are sitting on vast pools of valuable, untapped data relating to the way their employees work, their customers behave and their operations run. By unleashing that data and allowing artificial intelligence (AI) to work its magic, managers can arm themselves with unrivaled business insights that will enable them to boost productivity, energize teams, and earn their companies a competitive edge that is visible all the way from the boardroom, to the back office, to the shop floor. At enaible, we work closely with retailers across the Middle East, United States and beyond to help them reach their potential and exceed it. Our AIpowered Productivity Score uses retailers’ existing system data to accurately quantify productivity without the need for costly data engineering projects, while our Leadership Recommender™ provides actionable, personalized, and prioritized recommendations that help leaders to better their best and drive productivity growth. www.enaible.io
RETAIL PEOPLE . APR-JUN 2020 .47
FEATURE
Retail’s Next Big Shift Anthony Spary, Head of Retail at CBRE, speaks with The Retail People Magazine, and predicts that the retail business will converge into a single model known as “phygital” – as in physical and digital – where online and brick-and-mortar stores merge to serve the ever-increasing demands of consumers for convenience, speed and cost.
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n the coming years, e-commerce will continue to drastically change not just how goods arrive at our doorsteps, but what an actual “store” really is. The physical size, shape and location of buildings that supply the entire retail ecosystem will shift, and artificial intelligence will be a touchpoint at nearly every step of the journey. The e-commerce revolution has only just begun in this region. The titanic shift in the way we get our goods has transformed our expectations as consumers and the speed at which products arrive at our doorstep, is now the norm. In MENA, the e-commerce penetration of total retail sales averaged 1.9% in 2017, with the GCC at 3%. The United Arab Emirates is the most advanced e-commerce market in the region, with a penetration rate of 4.2%. But that ratio is set to change quickly, especially given the unprecedented circumstances that we all find ourselves in. A major change that has dramatically transformed the retail landscape is the rise of omnichannel shopping. Consumers currently tend to alternate the use of different shopping mediums such as the web, smartphones and physical stores to search for and buy retail products. In order to make the transition into this changing landscape, retailers have had to rethink their go-to-market strategies,
including their real estate needs. This continuing paradigm shift unfurling over the next 10 years will alter the retail model for how goods are sold, shipped and returned. Not only that, it will modernise the brickand-mortar retail experience in general. Anthony Spary, Head of Retail at CBRE predicts, that the retail business will converge into a single model known as “phygital” – as in physical and digital – where online and brick-and-mortar stores merge to serve the ever-increasing demands of consumers for convenience, speed and cost. The link between online and offline will be seamless and specific to the product type. Replenishment of regularly purchased goods – like milk, bread, paper towels, tissues and pet food – will be done exclusively online. Brick-and-mortar stores will become experiential centers and showrooms to burnish brands, or places to pick up or return goods ordered online.
THE SUPPLY CHAIN Given these trends, the size and location of fulfillment facilities must be rethought to satisfy same-day or next day deliveries, which are already popular with 45% of consumers. By 2030, predictive ordering based on consumer behavior will help move inventory to the places that need goods before they’re even ordered. The next step will be about AI-built models of customers in certain areas based on their ordering history, brand preferences and other purchasing tendencies to direct inventory where it most likely will be ordered. Those products will then be sent closer to groups of customers who fit that AI-constructed profile, where they will sit for a time in a nearby fulfillment facility before being sent to customers who indeed
48. RETAIL PEOPLE . APR-JUN 2020
order those products. This tamps down the cost of offering same-day delivery and serves as a lower-risk gamble to accelerate the supply chain in a very tech-driven strategic way. To realise this vision, the size and locations of fulfillment facilities will shift. In the Middle East, Saudi Arabia is the country with the largest e-commerce sales, estimated at USD 6 billion as of 2018. As the KSA’s e-commerce sector and overall population continues to grow, demand for quality logistics space to service the storage and delivery requirements of local and international e-commerce players is likely to increase at an aggressive rate.
RETAIL EXPERIENCE AND CONVENIENCE
Overall, consumers have rolled with the massive changes in the retail ecosystem at every turn, gaining greater benefits with each development. For some retailers, these changes have been devastating. But those failures have been case studies for how to evolve. Like most of the world, digital disrupters in the UAE are putting pressure on traditional brick-and-mortar stores but a strong digital infrastructure and improved trust in e-commerce will further spur growth in this sector, with major players including Amazon (formerly Souq), Noon, Jollychic, Farfetch and Namshi leading the way.
Currently, the UAE market is still very much dominated by brick-andmortar, as malls play a major role in the region due to the harsh climate and social dynamics, but stores are becoming more focused on launching experiences to connect with the consumer and differentiate from online competitors. But given that, it’s now cheaper and easier for consumers to order anything online than it is to go to a store, retail locations must evolve to serve different iterations of the retail experience to thrive in 2030. There will be the flagship stores that offer an immersive brand and shopping experience, whilst others will be focused on customer convenience and ease of purchasing. Then there’s the storefront concept that serves mainly as a customer pick-up and order return center.
43%
15%
10%
Source: CBRE Research, Euromonitor International, 2019. Note: Forecast shown represents the U.S., China, Japan, India, Germany, France, U.K., Russia, Canada and South Korea.
RETAIL PEOPLE . APR-JUN 2020 .49
FEATURE
Stay Relevant in the Age of Social Distancing Centric is a digital agency that helps brands to connect with their audiences. The Retail People Magazine spoke with Usman Khalid, CEO of Centric, who says that in order to gather the right data from the shoppers, it is important to give shoppers an incentive to make them participate easily. These programs will be the lead for business sustenance and growth.
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ith malls, schools, mosques and even courts closed for an indefinite period; we are going through an unprecedented time in history. The humanitarian crisis is fast becoming the deepest recession in recorded history. Social distancing shock will stay with us even after the virus is controlled; and this will have a major negative impact on planned events and other large gatherings. People will be extremely hesitant to attend any kind of social gatherings. Shopping malls across the region will be financially bruised with rent rebates to tenants during the closure period. Malls will have to work towards winning back customers. As customer affinity to their preferred mall will be weakened, it will be a great time to position your mall for the right type of footfall i.e. shoppers. Data will become the key to retaining the right type of footfall and incentivize the higher spending groups of customers. The marketing campaigns that we see malls conducting regularly are geared towards bringing in footfall but unfortunately do not target upper-middle to upper classes that end up spending the most with mall tenants. This tactic will have to change if malls want to lure customers back inside especially post COVID-19. To gather the right data from the shoppers you need to incentivize them and make it easy to participate. We already see Dubai Mall, Aldar and Majid Al Futtaim implementing such programs. These programs will be the drivers for business sustenance and growth. Traditional retail marketing needs to be changed to survive in the face of major bankruptcies expected in the retail sector in the
Social distancing shock will stay with us even after the virus is controlled; and this will have a major negative impact on planned events and other large gatherings. coming year. E-commerce was always the threat lurking in the shadows and with COVID-19, the situation has just accelerated. Intu (Major mall owner in the UK) is down 90% over the last one year in share value. In the end, we find ourselves in unknown territory and without any accurate data on shoppers, malls will find themselves at a loss on how to reposition themselves as soon as the worst is behind us. We need to build these solutions together in order to keep malls alive in the wake of such historic times. Usman Khalid is CEO of Centric; a digital transformation agency that provides artificially intelligent loyalty programs for shopping malls in the GCC region and beyond. The solution provides a whitelabeled mobile application for the shoppers which they use to upload receipts of any shopping done within the mall. The AI engine detects and verifies the receipts. The mall management has BI dashboards for management, marketing and leasing looking at real-time data of shoppers enabling them to make smarter decisions.
50. RETAIL PEOPLE . APR-JUN 2020
Native Tradition Illuminated Anew
Piotr Hopcia General Manager Multidekor
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Kacy Abouali Director Sales and Marketing MENA Region, Multidekor
Tradition combined with modernity, the highest European quality and world design, all co-existing in a customized unique concept. It’s the art technique for the perfect use of illumination to decorate the most prestigious retail facilities during festive seasons. This is what the Polish company, Multidekor is passionate about, creating unforgettable experiences in the Middle East. The Retail People Magazine sat down with the two gentlemen behind Multidekor, Piotr Hopcia, General Manager and Kacy Abouali, Director Sales and Marketing.
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ultidekor has been existing for almost a quarter of a century and has completed more than 1,000 projects all over the world,” says Piotr Hopcia, General Manager, Multidekor LLC. “We are happy to receive recognition from Middle East partners who appreciate our high-quality work and attractive design concepts. In 2019, we established Multidekor LLC in Dubai in order to have a market presence.” In January 2020, Kacy Abouali, Director Sales & Marketing for the MENA Region joined Multidekor, bringing his professional expertise from the retail shopping mall industry in seasonal and permanent decorations in the GCC and an ex-Majid Al Futtaim employee, Events & Promotions Manager at Mall of the Emirates. Multidekor implements projects related to various occasions, whether it is for Ramadan, National Day, Festive or Permanent Decorations, it all comes back to our creative design team department that is capable of meeting the client’s needs and converting any venue into a journey. The company’s Middle East portfolio encompasses City Centre Bahrain, the country’s largest shopping mall, as well as My City Centre Masdar located in the heart of the world’s most sustainable city, Abu Dhabi. Both shopping centre designs combine the traditional Islamic ornamentation with a modern spirit. Our Designers have used motifs of crescent moons and stars, rosette and Arabic geometric art to create this unique concept design that emphasizes on the venue’s character and tells a new story about it. The decorations were inspired by the newest design trends but also by the architecture of the shopping centers. Before Multidekor marked its presence in the Middle East market, the company was already recognized and has become well-known. Thanks to its large-scale European projects, such as illuminations for the German City of Magdeburg and Westfield Les 4 Temps in Paris.
“Our experience in preparing projects for very demanding partners from Germany or France, where the tradition of festive illumination is long, shaped the way we think about decorations. We focus on emphasizing the most interesting features of given space,” Piotr Hopcia adds, General Manager Multidekor LLC. Multidekor’s decorations also adorns cities in the United Kingdom, Russia, Canada and Australia. For many years the company’s designs have relied on local context and innovative solutions such as reduced carbon dioxide emissions and the quality of materials used. We would love to hear about your particular project and discuss how we can help. We are also available to provide advice or answer questions. Kindly get in touch with Kacy Abouali, Director Sales & Marketing Tel: +971 54 443 7408; Email: k.abouali@multidekor.pl
The company’s Middle East portfolio encompasses City Centre Bahrain, the country’s largest shopping mall, as well as My City Centre Masdar located in the heart of the world’s most sustainable city, Abu Dhabi. Both shopping centre designs combine the traditional Islamic ornamentation with a modern spirit.
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FEATURE
Do you want your Message to Stick? We’ve all grown up on stories. Stories have inspired us, stimulated our curiosity and helped us learn something. In the world of business, storytelling can be a powerful tool in our day-to-day business communication. The Retail People Magazine had an opportunity to speak with Indranil Chakraborty, Author and Founder of StoryWork who shared an example of the power of storytelling using a customer service illustration.
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et’s look at a simple example to understand how we can use stories to make our messages memorable. Nishad and Mustafa are the store managers of two different stores of a chain of bookstores. Today, they both have a floor training program for their staff in their respective stores. The head office had sent an email stating that the scores on in-store customer service had fallen in the latest survey. Nishad calls his team together for a huddle and says “You know that I have repeatedly spoken to you about the importance of customer service. It is is the most important responsibility we have. When we take good care of our customers they will reward us with their business. Not only that, but the scores that have fallen will surely increase. This week I want to see a higher level of customer service from all of you. I hope you understand”. Nishad’s team nods in apparent agreement and leave for their respective stations. In the other store, in a similar huddle, Mustafa says “Last week a lady had come in with her little daughter. As she was browsing, her daughter kept tugging her abaya and distracting her. Twice the mother looked down and said ‘give me a little peace’ but the child did not stop. That’s when I saw Khalid reach the scene, kneel down at the little girl’s level and ask, ‘baby what do you want?’ The girl said, ‘a chocolate’. Khalid said ‘wait’ and darted across the mall to a supermarket on the ground floor and returned with a bar of chocolate. He then took the girl to the children section and said ‘you can have the chocolate while I read you a story’.
Fifteen minutes later the lady reached the cash counter, put down three books and told Ali ‘I had come to buy one book, but when your colleague took care of my daughter I had the opportunity to browse a little longer and now I have three books to take home. Please thank your colleague’. Mustafa continued ‘Can I see many more examples of great customer service from the rest of you?’ The team nodded in agreement and dispersed. Which team do you think will remember the advice and which team will achieve higher customer satisfaction this week? I am sure the answer is obvious.
That is the power of stories. When you use real-life experiences to drive your message they become easy to remember. So go ahead and tell stories at work.
Stories are easy to understand, easy to remember and easy to retell. When you use stories at work your messages stick.
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ON AIR INSPIRE OTHERS TO SUCCEED
IN FOCUS
Target Hearts Not Minds
Participatory Marketing & Audience Engagement Methodology
A Marketing Mind Shift Participatory Marketing is a mind shift that includes learning how to market with customers, rather than at them. It requires new strategies and tactics to capture the hearts and minds of consumers – particularly those in Generation Y, who have fully embraced technology and the social internet. Participatory Appraisal has been existing since the earliest civilizations and has been the source of growth of nations, kingdoms, revolutions and even wars. When people become part of an initiative or an objective, the energy starts resonating and the impact is growth in leaps and bounds.
You & Me Become We…Yours and Mine Become Ours This same theory of participatory community appraisal when induced into marketing campaigns of community centres can truly bring a paradigm shift. At our Dalma Mall, we have incubated this simple theory into almost every marketing campaign we implement and execute. And you guessed it right, the results have been exemplary.
A Campaign of the People – By the People – For the People Specifically, in this part of the world where shopping malls are not just commodity centres but part of the community’s daily lifestyle and fewer options of engagement programs all we need is to give them that platform. And as all campaigns, there is always a most feasible Target Group (TG) and behavioural analysis of the same is key to formulating the right approach. Our approach to marketing events and promotions have moved away from the conventional sorts wherein, readymade agency concepts
54. RETAIL PEOPLE . APR-JUN 2020
Juby Jose Head of Marketing Dalma Mall
recommended were deployed. Instead, we review every opportunistic scenario with a distinctive spectrum of thought, weaving out new concepts and bringing in a twist to our events where participation becomes a must rather than being an audience. As a team, we challenge ourselves to come out with novel & thrilling event concepts which are also fleshed out completely to the finest detailing before being briefed to reliable agency resources. Such new concepts not only augment our customer experience & engagement levels, but also keeps our team highly motivated, every time when such a new concept makes waves.
A few case studies below: “DALMA MALL WINTER BALL” is one such event concept worth mentioning, that was implemented to celebrate the last weekend of 2019. Unique in concept, this was indeed one of the Biggest Kid’s Costume Dance Party hosted in any shopping mall. Witnessing over 1,000 pre-registrations covering over 40 nationalities of children between the ages 5 to 14 years, and an average of 82% revisit attendance for all three days of the event, not to forget the family members and friends who contributed to the success of the applauding event. The interest and involvement of both the children and parents were so evident even to the public who witnessed a dance floor filled with highly-energetic kids in vibrant costumes, as per different party themes assigned for each day, all contesting to win spot prizes for Best Moves, Best Costume, Best Hairdo, etc. Each day, in addition to Grand prizes for three lucky kids, there were prizes for participating across all three days of the event.
“I LOVE BINGO!!!” is yet another irresistible weekend family fun event rolled out during 2019 Valentine’s week. First time ever implemented in any shopping mall in UAE, this high-engagement game brought in a perfect blend of excitement and winning with
nail-biting experience till the very last moment of each game. The excitement, energy and enthusiasm of the event steered 70% of repeat customers to participate in the weekend fun (6 games) & winning. The participation with the highest dwell time deeply rooted in the game calls for every chance to win, bringing in the success of the event. The nail-biting experience of waiting for one number is one moment that gives such an adrenaline rush that stays with them for a long time. “LOCKED IN LOVE” is another high engagement, thrilling Valentine Weekend activation that involved shoppers across the week to engage in the weekend challenge of unlocking Valentine gifts from the giant hearts at Dalma Mall. With awe-inspiring photo opportunities and loads of winning through the simple game challenge, the event concept was a stupendous success, witnessing high-level customer participation and winning. Loads of Valentine gifts from Dalma Mall retailers including Mall vouchers were unlocked by lucky participating couples. They raced against a digital timer to unlock the hearts and get Locked in Love with the Mall. Over 600 couples participated in the three days’ activity. Some went back with gifts and others with sweet memories.
If you review these activities, you will clearly notice that all of them were done in participation with the community who got involved and unknowingly become the coordinators, the event managers and the artists for these shows. These activities leave behind a stronger memory zone as compared to any kind of high expenditure entertainment show. As the attention span becomes shorter so does the receptiveness of the same. A gamification strategy to influence customer behaviour is our success. Post the pandemic Coronavirus COVID-19 retail pause, the malls have to now be even more innovative in coming up with cost-effective campaigns to revive the health of the properties. Again, the key will be to understand and evaluate the behaviour of one’s customer and community base, to engage with customers in the way which they would want us to be with them rather than just being a one-way information channel. These Marketing Strategies, in the long run, will reinforce ‘brand liking and affinity’ and assist in the overall health of the centres.
RETAIL PEOPLE . APR-JUN 2020 .55
MECS+R MEMBER’S SEGMENT
MECS+R Corporate Members
Newly Signed-Up from January to March 2020 Platinum
Silver
Bronze
Look Who’s Joined MECS+R!!! New and Renewed Individual Members from January to March 2020 BAHRAIN Abhishek Shrivastava Ahmed Yusuf Abdulla Yusuf Duaij Al Rumaihi CANADA Ali Hasan Alkabeer, CLS, CSM Scott Forbes EGYPT Fayssal Abdel Akher Haytham El Dessouky Maram Moussa Moataman Daader Mohamed Bakir Nancy Karam Ramzy Omar Rawhey Sherif Rawhey GERMANY David Cervenka Franka Lange INDIA Susil Dungarwal IRAQ Ahmad Ismail Harez Salam Ihsan Zangana Ismail Yasen Ali Nazmi Aka Rawand Muhammed JORDAN Kinan Jaradat KUWAIT Mohamed Sorour LEBANON Aida Arar
56. RETAIL PEOPLE . APR-JUN 2020
OMAN Bassel Zein Hussain K. Jamal PAKISTAN Danesh N. Dubash Syed Salman Bukhari OTHER ME COUNTRY Mark Magness KINGDOM OF SAUDI ARABIA Abdullah Saud Bin Omer Ali AlAsmri Amal Alotaibi Ayman Gaber Fahad Aleisa Gergely Bodo Hamad Aldaoud Ibad Ur Rehman Ahmed Ibrahim Aloud Kelvin Crutchlow Khalid Alhussayen Mansour Alshehri Mohammed Al Khaldi Mudaihish M. Al Mudaihish Naif Alhumaid Raed Hamad Al Dosari Samia AlShadoukhi Waleed Aleisa UNITED ARAB EMIRATES Ahmed Al Qaseer Alain Bejjani Ali Sleiman Amjad M.G.E. Roushdy Arab Ameereh Ayman Ali Okasha Baiju Kurieash Pappachan Ela Ozbay Eldem Eman Al Mokdad
Firdous Ali Khan Furqan Athar Georgy John Hans Schreuder Hisham Shebaro Ishwar Chugani Jacqueline Patrona Jayant Ganwani Justin Cagwin Khalid Deemas Khurshid Vakil Khush Bakht Athar Leanne Hamilton, CMD Mahmoud Deemas Malcolm Bishop Malcom Joseph Marwah Al Shamsi Mohamed Al Hosani Mohamed Alshamsi Mohamed Shaheen C.M. Moustafa Moussa Phil McArthur Philippe Matta Pinkesh Shroff Rachel Walton Rahul Lal Reshmi Raj Sandeep Saligram Stephanie Durand Ba'Shammakh Sunil Bhardwaj Tomas Dvoracek Vincent Debre Younus Hassan Al Mulla UNITED KINGDOM Myra Searle Rob Arthur UNITED STATES OF AMERICA Garance Choko Steven Booth
The primary and the only “all-in-one� shopping, dining and entertainment destination in Khalifa City. Mall Size (sqm):
103,400
GLA (sqm):
43,114
No. Levels:
3
No. Retail Outlets:
89
No. Car Parks:
1,258
For more info contact Prem Mohan at prem.mohan@lineinvestments.ae l www.forsancentralmall.com
FEATURED MEMBER
One-on-One with... Mazen Makarem has more than twenty years of experience in effectively managing marketing projects from conception to completion in the shopping centre business. He is currently the Marketing and Communications Manager of Balubaid Real Estate. His day to day activities includes using the best digital and marketing management platforms to increase brand awareness driving the overall foot traffic of Hijaz Mall. He prepares and oversees the mall marketing plans and calendar of activities that drive a positive result in the retailer’s sales revenue and mall visitors.
How long have you been in the MENA Region? What is your advice on finding success in the Shopping Centre and Retail Sector? Moving to Saudi Arabia from Lebanon seventeen years ago, my experience in the shopping centre business continues to grow. I have witnessed many dramatic changes in the retail industry which have evolved. The brand mix in many shopping centres has too many of the same categories, overlapping competing products considerably. Making the mix interesting and diverse is crucial for the success of any shopping centre. Mall management is a critical factor for the success of malls globally. Integrating and managing operations, security, accounting, marketing, leasing and many other functions are important facets to run a mall successfully. A mall is a large, dynamic organism which need constant supervision, intervention and care. Shopping centres are functional seven days a week requiring constant and effective management systems. Running the day-to-day operations and making the business commercially viable while making dynamic changes to strategy, retail mix and promotions are part of mall management's daily role. Full Name:
Mazen Talih Makarem
Short Name: Mazen Makarem Nationality: Lebanese Job Title:
Marketing Manager
Company:
Balubaid Real Estate
School:
American University in Beirut
Birthday:
8th July
Hobbies:
Reading & Traveling
Education:
Bachelor Degree/ Marketing Management & Advertising Management
Place of Birth: Beirut, Lebanon Life’s Quote:
The Happiness on your life depends of the quality of your thoughts.
58. RETAIL PEOPLE . APR-JUN 2020
How are the Conferences, Trainings, or Certifications helpful for your career development? Education and mentoring help me to enhance my skills at my workplace. It is very important to know how others handle conflicts and challenges properly. Investing in training sessions, graduate classes and having a mentor is essential in my personal career development.
You have joined MECS+R since 2016, how would you describe your experience with MECS+R? I am pleased to be associated with MECS+R since 2016. The team at MECS+R has been very helpful in supporting their members within the shopping centre and retail industry. Sharing valuable information about what is happening in the industry, assisting in building our network through their conference and networking events is very important for me and others in the industry. Providing a platform for learning like the GVS training program has been instrumental for me to grow in the industry. The team at MECS+R is always ready to help facilitate our business and to raise our profile in the retail and shopping centre industry.
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