Content Executive Summary Shopper behavior in the news Industry news Best in store Hypermarkets Lulu Hypermarket Panda Carrefour City Center Union Coop Gas Stations Eppco & Enoc Emarat Pharmacies Boots
Executive SummaryThe third quarter of 2010 gave us more quantity than quality of retail work, with mostPOSM being made of corrugated sheets and only very temporary. It was also a story ofthe usual suspects being present in typical places.The one bright spot, actually an extremely bright spot, was the work we saw for Fairy. Ittruly showed out of the box thinking for retail, hopefully inspiring us to deliver such workin the future.Other notable work was the floor sticker for Coca Cola, which was very eye catchingand effective in stopping people in their tracks.Overall you could say it was a quarter filled with activity but with less innovation andcreativity than we‟d like. Here‟s hoping we see a big bang in the last quarter as retailerspush to get shoppers to spend as much as possible before travelling abroad.
Shopper behavior in the newsUAE consumers ease back into spending mode - Intelligence unit predicts adecade of growthDubai: With the local economy beginning to show signs of recovery, consumers are slowlyreturning to their spending habits and expenditure in the UAE will again pick up in the nextfew years, reaching Dh627.8 billion in 2020, Euromonitor International told Gulf News.The provider of global business intelligence projected that between 2010 and 2020,consumer spending will grow at a "healthy but less-than-robust" compound annual growthrate (CAGR) of nearly five per cent."Part of this growth, at least in the short term, will be the result of UAE consumers releasingpent-up demand accumulated during the recession and slowly returning, albeit with lessgusto, to their buying ways. For the most part, while expenditure is projected to grow over theforecast period, it will do so at more subdued rates," a Euromonitor spokesperson told GulfNews. Gulf News, (24/10)
Shopper behavior in the newsShoppers Take a Nonlinear Path to Purchase - Journey is complex andmultidirectionalA lingering recession, coupled with consumers‟ rapid adoption of digital tools, has inexorablyaltered shopping behavior in categories like groceries, home electronics, apparel and quick-service restaurants. Consumers engage with a variety of digital platforms as they researchsmall and large purchases, when they‟re in physical stores and during post-shop activitiessuch as product reviews and referrals. Further, the path to purchase is increasinglynonlinear, according to the findings of a global retail study conducted by MicrosoftAdvertising and Carat.The study, conducted in March 2010, examined how the recession has changed shoppers‟purchasing habits and how different media touchpoints affect consumer shopping behavior,including the way people learn about, research and discuss their purchase decisions. Thisshift has altered the traditional purchase funnel whereby marketers move consumers fromawareness to sales to include digital media. For example, consumers may first learn about aproduct based on a tweet from a friend or a post on a social network, then go online viacomputer or smartphone to research the product, search for the product and consult productreviews. Beyond that, offline word-of-mouth and media remain influencers, making for acomplex multimedia experience along the path to purchase. Emarketer, (20/10)
Industry newsPANDA to be 100% owned by SavolaSaudi Arabian food producer Savola announced plans to increase its stake in retail subsidiary Al-Aziza Panda United to 100%, through a share swap and cash deal. The company, which currentlyowns a majority 92% share in Panda, has been gradually increasing its shareholding over the pastmonths in line with plans to give more focus to the retail sector.Savola plans to issue 8.71 million new shares to the Alhokair Group and pay SAR20.7 million(USD5.5 million) in exchange for its 7% stake in Panda. Savola said that the Alhokair deal valuedAziza Panda United at SAR4.3 billion (USD1.14 billion). Planet Retail, 27/09/10CHOITHRAMS adds sustainability info to fish labelsChoithrams has become the first supermarket in the UAE to include information on sustainability onits fish product labels. The group is taking part in the „Choose Wisely‟ awareness campaign, launchedby the Emirates Wildlife Society and the World Wide Fund for Nature and plans to color code andlabel fish in red, orange and green categories to encourage customers to consider sustainability whenshopping.The campaign will begin with 12 of the group‟s 26 outlets and staff have been trained to educate thepublic and encourage them to shop for the green varieties. K Subhash, Retail Marketing Manager atChoithrams said: “It will take a while for this awareness to fully sink in and people can make valuablebuying decisions. Planet Retail, 27/09/10
Industry newsGALERIES LAFAYETTE to launch gourmet food conceptFrench department store retailer Galeries Lafayette has had a new gourmet food concept calledLafayette Gourmet created for a mall in Dubai, Design Week reports. The concept was created byCada Design Group which has been working on the project for two years and will formally open on5 October.Cada‟s Founder and Director David Anderson said: “Weve taken our cue from the way food is runin Paris, but the concept in Dubai is brand new. Its not physically referencing anything youve seenbefore. It wasnt only about collaborating the concept and getting the brief expressed in the look andfeel and materials palette. Philosophically and emotionally, the French take a very different look atfood - its the centerpiece of life.” Planet Retail, 04/10/10EMKE Lulu to open six new hypermarkets in UAEUAE-based Emke Group is to launch its eighth Lulu hypermarket in the UAE by the end of this yearand plans another five stores in the western regions to be opened by the end of 2011. ManagingDirector Yusuffali MA said: “We are investing up to AED700 million (USD190.54 million) in setting upthese hypermarkets as the consumer base in the capital is increasing.” Under its „Achieve 100‟expansion project Emke is targeting 100 stores by the end of 2011, from 83 at present. Planet Retail, 12/10/10
Industry newsCASINO Monoprix to open in Lebanon and SyriaCasino-owned Monoprix will be revisiting its collaboration with Lebanese company Admic. Admicwill become a franchisee for the group in Lebanon and Syria. The first store opened in Damascusand a second will follow in Aleppo at the end of the month. The agreement has been signed for aperiod of 10 years and Admic will open Monoprix and Monop‟ outlets. The chain has recentlyopened in Tunisia, Andorra and Mauritius and will open in Qatar in 2011. Planet Retail, 08/10/10Al Futtaim says UAE retail to grow 5% in 2010Robert Willett, group CEO of Dubai-based Al-Futtaim Group, has said that consumer spending in theUAE has picked up in recent months and retail sales will rise at least 5% this year, driven mostly byfurniture and car sales, Reuters has reported. "Were in upper single digits in retail in the UAE thisyear, in the range of five per cent plus, and even further ahead in automotive ... Growth is going to beeven better next year," Willett said. "Elements in our retail business, like Ikea or Toyota, are doingextremely well, as is Marks and Spencer, especially in places outside the UAE, like Kuala Lumpurand Singapore," he said, adding that their operations in Asia were currently outperforming those inthe UAE. AME Info, 18/10/2010
Industry newsSubway opens 100th store in UAESubway restaurant chain has opened its landmark 100th store in the UAE, 44th in Kuwait and 41st inSaudi Arabia. Subway has also unveiled plans to add three new stores in Kuwait and two in SaudiArabia by the end of 2010. The new milestone will further complement Subways diverse regionalnetwork, which makes a total of 230 outlets in the region. AME Info, 18/10/2010MCDONALD’S rolls out breakfast menu in UAEUS-based hamburger chain McDonalds has introduced a breakfast menu to its restaurants in theUAE, local press reports. The menu features eggs, coffee, hash browns, fruit bites, hotcakes andMcMuffins and has been rolled out to 37 locations across the country. "The introduction of thebreakfast menu gives these people who are on the go the chance to enjoy a satisfying breakfastquickly and enables them to kick start their day," said Rafic Fakih, Managing Director ofMcDonalds UAE. Planet Retail, 22/10/10
Industry newsNestle launches its biggest nutrition and health campaign in the Middle EastAs part of its ongoing efforts to promote good nutrition and healthy living, Nestlé Middle East haslaunched the “Eat Right Live Well” campaign – a regionwide initiative aimed at empowering familiesto make healthier food choices through increased awareness of good nutritional habits andpractices.The largest initiative of its kind launched by Nestlé in the Middle East yet, “Eat Right Live Well”kicked off with a major promotional campaign by Nestlé at leading stores and outlets throughout theUAE, Qatar, Bahrain, Oman, Kuwait, Jordan, Syria and Lebanon. The promotion, under the maintheme, “Win Your Way to Healthy Living”, provides shoppers an opportunity to win valuable prizesdesigned to encourage them to embark on a healthy lifestyle - such as diet packages, gymmembership, Nintendo Wii Sports, Polar watches, pedometers, and BMI calculator, among otheritems. BI-ME, 14/11/2010
Industry newsNesto opens 12th store in UAEDubai-based super markets, departmental stores and hypermarkets chain, Nesto Group hasannounced the opening of its twelfth store in the country in Jebel Ali, Gulf Today has reported. Thenew store is the firms largest in the country. The retailer also said it plans to open morehypermarkets in Sharjah, Ajman and Ras Al Khaimah within a year. Nesto outlets are present inDubai, Sharjah, Ras al Khaimah, as well as Ajman in UAE, Manama in Bahrain, and in Riyadh aswell as Dammam in Saudi Arabia under different names including Ever Fine, Al Wafa, Carawan,and Nesto. AME Info, 28/11/2010Victoria’s Secret stand alone stores to open in Kuwait and DubaiVictorias Secret is set to unveil its first ever stand-alone stores in the Middle East. Owned andoperated by Kuwaits M.H. Alshaya Co, the store is scheduled to open on 30 November in MarinaMall in Kuwait. The new stores primarily offer Victorias Secret beauty and branded accessories andwill give customers access to a much wider range from the brand. The opening will be closelyfollowed by a second store in Dubais Mirdif City Centre on December 11, 2010. AME Info, 28/11/2010
Best in storeOur main struggle, when working with premium priced products, isdemonstrating product superiority. .In the absence of a manned demonstration, and knowing that shoppers maynot always have or take the time to read claims, especially in lowinvolvement categories such as dish soap, Fairy came in with the best workwe‟ve seen in a long time.
Fairy brought their claim to life where no onecould ignore it. 1 liter of Fairy can clean up to30,000 plates. The plates on the stand looklike their real plates protruding out of the backwall.Brilliant!
Panda brought „back to school‟ to life in store with branding throughout in theshape of recognizable stationery.
Panda has an interesting claim, saying that SR 10 at their store is not like SR 10at any other store. They had danglers hanging all over the store with differentdisplay stands showing offers on items for SR 10 (such as the Bario beer in thepicture below). Very cool way of owning value.
Downy made the most its stands by using the entire side to display their visual. Very disruptive in such a cluttered environment.Gillette‟s units drove its eau detoilette‟s shape clearlydifferentiating it from otherproducts, all while keepingbranding clear to not throwshoppers off too much. Despite keeping its stock in shipping boxes for all to see, Nestle managed to bring out the fun and excitement in their execution for Cookie Crisp.
In line with theirpositioning, Carrefourclearly branded areaswhere 1-day-onlyincredible offers could befound.
In an effort to pushcandy and costumes,Carrefour dedicated anentire part of the store toHalloween.
BIC made sure toleverage its bright brand colors and had a stand that was hard to miss. Axe made sure to stand out by using large branding and a disruptive all black design.
This rather impressive Dettoldisplay had a vivid, luminous lighting system gave off a fresh & lively vibe ideal to push its sanitizing brands.
Aquafresh stood out with a glitzy display andfloor media not to be missed byshoppers.The display provided aninformative flyer which reinforced theirobjective of being teeth professors. Thetagline “What do you want from yourtoothbrush?” lured customers into wanting toknow more about specialized toothbrushesfor their various needs.
Twix capitalized with their successful“Pause more see more” tagline and created adisplay with diecuts of the “pause” button. The simple but eye catching display stoodout to shoppers and could not be missed.
Downy made the most of its new packaging, using it to create disruptive blocks in store.
Despite a typical shape, Coca Aquafresh kept consistent with their imagery,Cola managed to make the most making sure the die-cut on their floor stickerof their floor sticker. The fact that it followed their signature swirl.looked like a spill made sureshoppers noticed it.