Contents Executive Summary Shopper behavior in the news Industry news Best in store HFS – High Frequency Stores Mall of the Emirates Hypermarkets Lulu Hypermarket Geant Panda Carrefour City Center Union Coop Gas Stations Eppco & Enoc Emarat Meed Pharmacies Boots
Executive Summary Welcome to the second issue of Storebites, closing out 2009. As you will see throughout the report, brands from every category have been investing much more in retail, and competition is fierce. Some may think that this practice is a reflection of budget cuts or pressure to close the deal, but it seems this trend is here to stay. We’re seeing more campaigns being rolled out at multiple touch points in the same store, and better and smarter communication tailored to shopper needs. The practice has become so popular that brands, such as Twix, are already looking to break from the clutter within the store to get shoppers’ attention on their way, as they enter it. Both retailers and brands are seeing the benefit in giving shoppers an experience, more information or a small incentive to prompt a purchase. Carrefour broke from its per square meter ROI model and set up a videogame hang out area for teenage boys 2 weeks before Christmas, and as some our own people will tell you, it was impossible to get a seat! Overall, we’re glad to say the level of the work we’ve seen has truly improved and we invite all those involved to step up their shopper-based thinking accordingly.
Shopper behavior in the newsDubai Shopping Festival brings 3.35m visitors to DubaiWhile visitor spending was down 2 percent from 2008 figures due to the slump in consumer confidence,the global economic downturn had minimal impact.Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai Airports, Chairman and Chief Executive ofEmirates Airline and Group, and Chairman of the Dubai Shopping Festival Supreme Committee said, "Itjust goes to prove the unshakable popularity of DSF, and that Dubai will always be an attractive shoppingand tourism destination for tourists."We can attribute these impressive results to the solid collaboration between the public and private sectorsin Dubai towards ensuring the success of the event, a key factor that has always been pivotal in thesuccess story of DSF along the years," he said."The results of DSF 2009 are a testimony that DSF can motivate the retail and tourism sectors in Dubaiagainst all odds." Gulf News, 4/01/10
Shopper behavior in the newsArabian Business’ look at consumptionThe Arabian Business Retail Trends Data, published in association with Datamonitor as part of its Recession andRecovery research, shows how consumers in the UAE and Saudi Arabia have changed their shopping habits amidthe global credit crunch.The statistics, which start in May and update on a monthly basis, show shoppers’ changing behavior related to thefollowing questions:1. How many limit the amount of shopping trips2. How many buy cheaper brandsThe monthly sample size is approximately 320 respondents. Arabian Business.com
Industry news Citruss TV has seen sales increase 35 percent this year The retail industry has suffered in the Middle East, but Citruss TV, which is available in 15 countries across the Middle East, had an “unexpected” increase in its expectations. Twenty percent of retailers have seen a 20-30 percent decrease since the economic crisis, as per a survey published last month. Seventy percent of Citruss TV’s sales came from the channel’s main viewers, who were mostly Saudi based Arabic speaking women. Arabian Business, 13/10/09 Saudi Savola finally completes Geant purchase deal Savola had increased their initial offer by 10.6 percent to the equivalent of 486.6 million riyals in cash. The acquisition will enable Savolas retail business to raise its share of the Saudi retail market to 8 percent from 7 percent and would increase its turnover by 13 percent. Savola said they hope that within five years al-Azizia Panda would take a 10 percent share of the 96 billion riyals generated in annual sales by the Saudi retail market. Arabian Business, 13/10/09Health and beauty retailers show flexibilitySpecialist health and beauty chains seem not to have been as badly affected by the recession as other industries.The Body Shop and Sephora have both implemented certain strategies in order to overcome the current economicdifficulties. The Body Shop has restructured itself, and Sephora has decided to grow in the male grooming sector. Retail Planet, 25/08/09
Industry newsTop 20 Africa and the Middle EastSince the autumn of 2008, retailers in the Africa and Middle East region (AME) have been progressing swiftly andhave shown signs of growth despite the downturn. Stores such as Waitrose, Panda, EMKE and Carrefour areexpanding within the AME region and Carrefour has moved up from sixth to fourth place in the top retailers chart of2008. Retail planet, 01/09/09Damas loss-making subsidiary to be liquidated loss-Damas International announced that it had appointed a liquidator for their loss making Italian-based subsidiary and avoluntary winding up petition would be filed with courts in Milan.A statement said the subsidiary accounted for less than two percent of the total revenues of Damas InternationalLimited in the year 2008-2009. Arabian Business, 13/10/09UAE electronics market expected to grow by $1bn by 2013Demand for electronic products in the UAE have held up this year with the market expected to be worth $3.9bn by2013, it is now estimated to be valued at approximately $2.9bn in 2008.The Dubai Chamber of Commerce & Industry, said increased demand would be driven by popularity of 3G mobilehandsets, smart-phones, notebooks and big screen LCDs.The report added that “…manufacturers have contributed in keeping prices in Dubai about 15-20 percent lower thanother markets in the region“.It also says that buyers prefer the international brands due to the “prestige and security”. Arabian Business, 18/10/29
Industry newsSaudi new car sales seen rising 50% by 2013According to Business Motor International, there is a good chance the auto sector will improve.While the UAE, Kuwait and Bahrain are expected to show declines in 2009, growth in the Saudieconomy, along with liquidity injections and less dependence on sales to expats, should see itscar sales market grow by more than 2 percent this year, the report added.Overall it is expected that by end-2013, sales should be up by nearly 50 percent compared with2008 levels. Arabian Business, 18/10/09Playstation Store opens in Saudi ArabiaAl Faisaliah Group Holding, Saudi Arabias sole distributor of Sony products, has announced the opening of thefirst PlayStation Store in the Middle East in the Saudi capital, Riyadh. With over 75% market share in the gamingsector across the Kingdom, the new store will offer the entire range of PlayStation network content for PSP andPlayStation 3, along with gaming accessories and solutions. AMEinfo, 12/11/09Italian jewellery a great hit among SaudisThe Kingdom of Saudi Arabia has shown a preference for the beautiful designs of gold Italian jewellery, compared withtheir cheaper competitors, despite the fall out of the world economic slowdown. Saudi Arabians prefer the intricatedesign of Italian jewellery and its constant upkeep with gold fashion. Arabian Business, 14/11/09
Industry newsTom Ford to expand personal luxury brand in Middle EastWith a store already launched in Dubai, Tom Ford, former Gucci fashion designer, plans to expand his own “TomFord” flagship store in Qatar and Bahrain, and he already has his eyes on Riyadh.Ford, who already stocks a range of “dishdashas” (a traditional form of male Arab dress) in the GCC region, saidhis brand has managed to withstand the economic downturn better than other luxury retailers as his customersare more “insulated”. Arabian Business, 10/11/09Cairo Festival City creates new opportunities for the retail industryExpected to open in early 2012, Festival Centre will offer more than 160,000 sq m, gross leasable area, of retailspace contributing to the fast paced growth of the Egyptian retail market and its economy.Cairo Festival Citys General Manager Mohamed ElMikawi, said:"… our retail experience is expected to create over 5 000 new jobs, and we hope to contribute to the development ofEgypts economy."Cairo Festival City will be hosting local Egyptian brands as well as their own Al Futtaim brands, which will be the firstto open in Egypt as well as other new international brands which are new to the Egyptian market. AME Info, 17/10/09Carrefour Turkey plans expansionCarrefour Turkey, a joint venture between the French retailer and Sabanci holding is targeting the creation of 7,000jobs within three years and creating 1,352 jobs in the first half. The partnership plans to open 60 more stores by theend of the year after opening 29 in the first half. At the end of 2008, the partnership operated 760 outlets, including613 Dia discount stores, 125 Carrefour Express and 22 Carrefour hypermarkets. Retail Planet, 24/07/09
Industry newsGlobal retail theft increasesAccording to a recently published study from the British Centre for Retail Research, the level of shrinkage in theglobal retail industry reached USD114.8 billion in 2009, representing a significant increase of 5.9% over lastyear’s total of USD104.5 billion.Theft protection technology vendor Checkpoint Systems, found that the rise in shrink was greatest in NorthAmerica (+8.1%) and Middle East/Africa (+7.5%). In Europe, the rise of theft was also significant (+4.7%). Retail Planet, 30/11/09SAINSBURY’S to buy 50 more electric vans UK retailer Sainsbury’s is updating the online grocery delivery service by buying 50 more electric vans, making it own the world’s biggest fleet of electric vehicles. The retailer, which already has 20 electric vans, said the new vehicles would be deployed in Central London, meaning that 60% of its home shopping customers in the city centre would be served by eco- friendly vans. Each van is restricted to 40mph and has a range of 60 miles per day. Retail Planet 4/12/2009
Industry newsWalmart Sustainability IndexWalmart has announced lofty plans to create a single source of datafor evaluating the sustainability of products. Ultimately, the index willprovide transparency into the sustainable qualities of all of its products.This is a great way to eradicate greenwashing.The index will be implemented in three phases, according to the company release.First, survey questions will be sent to its suppliers, focusing on energy, material efficiency, natural resources andmore.Second, a consortium of universities will help lead a global database on the lifecycle of products. Walmart providedinitial funding for the consortium. The University of Arkansas and Arizona State will provide scientific research, whileprofessors at Duke, Harvard and others are expected to plan the index.Third, translate the product information into a simple rating system that shoppers can see and understand in stores.An article in The Wall Street Journal said an environmental labeling system, similar to a nutritional label, will beadded to products. It could take five years or longer to implement the system. this week in Shopper Marketing, 27/07/09
Industry news Coca-100 new flavours in new Coca-Cola soda machineDeveloped on the assumption that theres no such thing as too much choice, Coca-Cola Freestyle is a new self-servesoda fountain that can dispense up to 100 different drink flavours. The machine is being tested this summer atfastfood restaurants in California and Atlanta, with the intention of rolling out units across the US early next year.Flavoured teas, waters, juices and soft drinks will all be available from Coca-Cola Freestyle, letting customers selectdrinks based on brand, calorie content or caffeine levels, all through the systems touchscreen interface.Combinations will be pre-set, meaning Raspberry Coke and Peach Fanta are available on tap, but frat darescombining tea and Sprite wont be possible. Many of the flavours on offer are new to the US market. www.springwise.com, 28/07/09
in-Best in-store this quarterHead & Shoulders beat out some serious competition from Lulu Shine likea Star and some top contenders in Saudi. This initiative had the edgebecause not only were the main stops along the shopper journey covered,but each was well thought out. .The communication tackled main issues shoppers may face as a barrier topurchase. The POSM was placed to truly highlight the products and theshopper was never left hanging.
All HFS visited had significantly well organized merchandising. This helped navigation and made products easy to locate and retrieve. Significant increase in use of shelf strips,Chips display placed directly drawing attentionnext to counter, making it towards the productseasy and convenient to pick displayed.up (impulse purchase).
Dunhill hassignificantly improvedtheir productplacement/visibility.Attractive shelf stripshelp in drawingattention towards theproducts.
LOOK AT ALL THE ANGLES: Even on the reverse, the stand hosted Oral B and Crest branding, which was visible to shoppers coming up the escalator.LOCATION... LOCATION!P&G setup shop convenientlylocated between the Cinema andthe food court, guaranteeingmaximum footfall and enticingcustomers with a free sample inthis simple, yet attractive stand.
With the support of P&G, Lulu threw abeauty event named ‘Shine like a Star’that was communicated from the parkinglot all the way to the promotional aisle. Shoppers were given the opportunity to have their picture taken in the store by a professional photographer, which was in turn juxtaposed onto the cover of a magazine, alongside renowned celebrity Katrina Kaif.
Knorr had a bilingual palette wrapper on itsdisplay communicating 20% off along with thefree recipe booklet. However, Knorr’s display isshared with Lipton, which can get a bitconfusing. Tang’s Ramadan special edition packaging on both flavors orange & mango was very attention grabbing, colorful and incorporated Ramadan elements.
This display stood out in terms of its look and feel,since we directly associate it with a Ramadan tent.It had a stack of different date brands. Away from all the clutter, Pringles stood out with its gondola-end Ramadan branding, especially with its flashy red color that can be spotted from miles away.
Royal’s shelf talkers stood out due to the appetizing desserts. The backtranslation of the communication message is “Royal is with us andbrings us together during Ramadan”. Kiri’s value packs stood out in the cheese fridges because it was the only Ramadan value pack. Even though the value packs were placed at a low eye level, the red color manages to grab attention because of the contrast. Tefal’s display was very simple, but had an overall warm, Ramadan look and feel. All the cooking tools needed were packaged in value packs, at an irresistible cost!
Twix branded the escalator side panels and the points ofentry at Panda. Very eye catching and appealing andmore importantly it ensured that everyone coming intoPanda had enough time to take in the communication. Fairy’s most recent campaign Doux chicken ran a joint communicated the promotion with Panda power of Fairy to where shoppers got the clean your plates chance to win 3 Chevrolet using cold water. 4x4s with the purchase of certain products. To illustrate the point, POSM had a water container with fake ice in it.
Head & Shoulders launched a campaign throughout the shopper journey leveragingrecommendation of professionals. Each touchpoint had different and relevant communication;merchandising was impeccable and each and every shopping barrier that could be faced whenpicking brands was tackled (premium pricing, doubts on functional benefits …).
Vaseline In a push to sell more personal careOlay Gillette and beauty products and leverage their expertise, Carrefour made sure to always have prominent brands with eye catching stands within the beauty section. Each was manned with a promoter and allowed for good visibility and off-take. L’OrealNivea Pantene
Oral B and Crest Promoter within the aisle to give shoppers that ‘Expert’ advice. Barbie re-created a Barbieland zone in the weeks before Christmas with a designated play area for children.Carrefour hosted anentire video gameplatform with gamesimulators, themedstands and bean bags totry out consoles.
Comfort got an open location and made sure to make their products as accessible as possible to shoppers passing by.Nestle used fresh and vibrantcolors to promote its health lines,but the cluttered environment didnot create a very inviting stand.
Always a challenge, Schick managed to getmen’s attention by using racing red topromote its new razor. The national celebration “Gergian” (Gulf version of Halloween) was especially promoted with a corner on its own offering bite sized chocolates and sweets.Lindt and Jewels chocolates got right into theChristmas spirit with holiday themed stands.
Sensodyne played up its clinical approach with a clean and organized display.Herbal Essences took up the center ofthe store, using hanging to grabshoppers’ attention. The stands were abit underwhelming however consideringthe excitement built.
Duracell took an innovative approach, by beingavailable at virtually every aisle end, as opposed togetting one display area. DCL instant yeast gave away free cookbooks on their units. They were not region relevant and did not mention Ramadan at all.
Al Marai prompted more Ramadansales by creating an easy-to-carryfamily pack.
Running a promotion between Etisalatrecharge cards and their café “Bakeria” ,Emarat encouraged people to comeback to the station and eat by givingthem 100 AED gift voucher.Tent cards communicating this promotionwere placed in the station and on hightables.
Masafi had promo packs displayed at the entrance of the store, making this deal hard to miss!Featured at the front door in the promotionssection, Red Bull communicated their new largesize cans.
Since the weather in Saudi Arabia is relativelyhot all year round, Almarai is using plastictransparent sheets to cover their fridges andpreserve as much cold air as possible to keeptheir products chilled.
Expert Promotion Boots uses a wrap Promotion:stating “whatever your health question,ask your Boots Pharmacist”. Directlyabove the poster is the Pharmacistrecommended product, Strepsils,Benefiber, etc. This instills consumerconfidence in the product and ultimatelydrives sales up. Bundle Deal: Positioned conveniently between two aisles. The gift bundle contains a combination of multiple items which are available individually on the aisles, but with a twist. Overall reduced rate and a complimentary basket.
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