Content Executive Summary Shopper behaviour in the news Industry news Best in store HFS – High Frequency Stores Hypermarkets Lulu Hypermarket Geant Panda Carrefour City Center Union Coop Gas Stations Eppco & Enoc Emarat Meed Pharmacies Boots
Executive SummaryLooking back on the second quarter of 2010, it was definitely the quarter of „World CupMania‟. It seemed that every brand somehow had saved its in-store budget and wanteda piece of the action.Some brought football fields to the store while others pushed their claims to theforefront, a clear acknowledgement that the shopper needs to be wooed all over againwhen put in front of competing brands.Similar the previous quarter, we‟re seeing less innovation in terms of design, but a lotmore examples of full roll outs and experiences that invite shoppers to spend time withbrands.As the retail engagement practice gains popularity, we anticipate more support fromretailers, advances in technology and tighter integration of campaigns through-the-line.For now we go from the World Cup season to the Ramadan season, and hopefullytowards multi-channel shopper marketing. Interesting developments ahead we‟re sure!
Shopper Behaviour in the newsOnline shopping catching on with SaudisSaudi consumers fed up with the low quality of products and seasonal priceincreases on items that are traditionally purchased before and during Ramadan andEid Al-Fitr are opting to buy earlier and online."I have already ordered some appliances needed for Ramadan cooking and clothingfor my children as well as some Eid gifts from online shopping sites based in the USand Europe," said Renad Bassam, a 28-year-old mother of two.According to a survey carried out by the Arab Advisors Group, online shopping inthe Kingdom has really been catching on with SR12.3 billion ($3.28 billion) beingspent by online Saudi shoppers in 2008.The survey also showed that 3.5 million people, or 48 percent of the total Internetuser base in the country, have purchased products or services online; 41 percent ofthese shoppers made these purchases using credit cards. Zawya.com, 31/07/2010
Industry newsCARREFOUR UAE opens in-store pharmaciesCarrefour has opened an in-store pharmacy in Carrefour Deira City Center, Dubai inpartnership with UAE pharmacy chain BinSina Pharmacy. The pharmacy, whichoffers comprehensive pharmacy services, occupies 1,200 square feet. It is thesecond pharmacy outlet to be incorporated in the Carrefour chain in the MiddleEast, after the one that was opened in Carrefour Mall of Emirates. Planet Retail, 22/04/2010EMKE Group to open 5 new Lulu stores in OmanUAE-based retailer EMKE Group has said it plans to open five new Lulu stores worthDhs900m in Oman in 2010. The new stores will be located in Wadi Kabir, Khaborah,Khasab, Salalah and Nizwa. The group already has six stores in Boushar, Darsait,Barkha, Sohar, Al Seeb and Salalah. AME Info, 28/04/2010
Hersheys Chocolate World opens store in DubaiNorth Americas largest chocolate manufacturer, Hersheys has announced theappointment of “Retail Is Detail” to open its first Middle East Hersheys ChocolateWorld store at The Dubai Mall. Retail Is Detail has signed exclusively with Hersheysfor the expansion and franchise rights of Hersheys Chocolate World in the MiddleEast and South East Asia. The company plans to launch more Hersheys ChocolateWorld concept stores in both continents within the coming months. AME Info, 3/07/10WHITBREAD Costa Coffee looks to Middle East expansionWhitbread-owned Costa Coffee has earmarked the Middle East as a “critical” area forgrowth, according to reports in local press. The chain currently has 228 outlets in theregion and saw year-on-year sales increase 20% in Saudi Arabia.Managing Director John Derkach said: “The Middle East is absolutely critical to Costaand certainly critical to our international growth ambitions.” Derkach added: “We‟ve gotjust over 30 stores in Saudi now and we‟re growing our like-for-like sales there at over20% per year. That gives us strong encouragement to move on with our franchisepartner and open more stores.” Retail Planet, 6/07/10
SUBWAY to open 100th UAE outletUS-based sandwich chain Subway plans to open its 100th outlet in the UAE by the endof July, according to reports in local press. The company hopes to have over 115 outletsin the country by the end of 2010. Retail Planet, 8/07/10Panasonic 3D TV to launch in SaudiAlesayi Electronics, the sole distributor of Panasonic in Saudi Arabia, is to introduce thenew 50-inch VIERA Plasma Full HD 3D television to the Kingdom. The TV, which will beavailable with one of Panasonics 3D eyewear, offers cross-talk reduction, crisp andclear high quality moving pictures, enhanced luminance efficiency and improved picturequality even when viewing 2D content, the manufacturer said. AME Info, 15/07/2010
Zawya to open convenience storesShops will offer 24-hour customer hotline, online and phone shopping with deliveryservicesDubai Zawya, a new chain of convenience stores, is set to open its first six outletsacross the UAE in the next quarter.“These stores aim to be local convenience stores. The concept is popularinternationally and this city is still hungry for small stores. It looks like there‟s a bigscope for it in this part of the world,” Anil Verma, COO of Zawya Supermarket, adivision of the Al Ghurair group, told Gulf News.The Zawya stores have ambitious plans to expand in the UAE with locations onShaikh Zayed Road, International City, Abu Hail and Emaar Business Park.Verma said they are looking to open 90 outlets in the next five years across the regionand will also look into franchise possibilities.The stores will also offer loyalty benefits and a delivery service where customers canchoose to order either by phone, in the shop or online. “What we‟re trying to bring tothe people is convenience. We‟re accomplishing this through professional homedelivery and offering a wide range of smaller stores that are conveniently located,”said Verma. Gulf News, 12/08/10
CHOITHRAM to expand with new formatUAE-based supermarket chain Choithram is set to almost double its number ofsupermarkets across the country and will also open smaller neighborhood stores for thefirst time. The group said it will add 19 new outlets to its portfolio of 27 stores across thecountry. In the face of aggressive competition, Choithram has worked with a designconsultant to reinvent its image and come up with a new store format which is clean,bright and uncluttered and more in line with the changing preferences in the region. Thegroup opened the first of its new smaller outlets earlier this month in Dubai‟s JumeirahBeach Residence. Planet Retail, 21/06/10
Best in storeThis quarter, our winning entry is successful for being a great idea, with simpleexecution and distinctive design. .Considering people always look for some sort of object to reflect off after using tissue,to make sure the job is done, Kleenex has just made our lives more practical byproviding a built in mirror on their packs.The graphics chosen for this neat display cut through the clutter by using dark colorsto stand out against the typical bright displays found in store.
Nintendo decided to take advantage of the World Cup by promoting for their Wii FitPlus! They set a small football court in thevideogame aisle and placed a TV attached to a Wii so people could try it.
Galaxy managed to get great adjacency to canned foods and beverages. Great for impulse purchases!
Pringles took their above the line campaign for the World Cup to the store and brought it to life with vibrant colors, distinctive design and great location.They also supported the effort by buying great spaces for impulse buys throughout the store.
‘Private Label’In KSA, the retailers currently available do not have the capacity to launch andsupport private labels in the long run and still be competitive, at least not on thescale we have witnessed in Europe and the United States.Panda is one of the retailers in KSA that has come ready to adopt a whole range of products undertheir umbrella. Their line includes:Toilet paper Tomato paste Whitening detergent Cooking oil Laundry detergent Beans Scented detergent Shredded mozzarella Cream Table salt Rice Powder milk Tahini Light bulbs/ Energy saving light bulbs Ketchup Electrical appliances
Bambini launched a new product in theSaudi market; a pure form of water,ready to be added to baby food. It is wellpackaged and sold at a premium price.Bambini is the only brand that has waterfor baby food preparation on shelves.
LG constructed a living room like stall thatmade their consumers feel at home.A TV stand with LG products on it, a table withLG 3D glasses and a chair (not seen) withsurrounding speakers.
Snickers took a large spot area near thechocolate aisle and constructed a bilingual goallike stand attracting football fanatic fans.Sony realized the FIFA build up andconsequently built a mini stadium displayingits products and the brand’s love for football!
Cheerios leveraged the hype around the newShrek movie with a fully branded lama stand.Tefal was semi successful in attractingcustomers by installing a small a LCD screenshowcasing their many household products.
Crest got a prime location in the supermarketand decided to go big!A large display stand showing all theirproducts.
Nothing is better than having a promotionwhere the consumers can win a CAR!Pepsi did that in, and to encourage thecustomers more, they put the car in Carrefourand surrounded it with Pepsi cans (including7up, Miranda and Pepsi Max)
The whole theme of this promotion is great,since the way that the cans were distributed,appears as a small hill; and the Toyota FJ iswell known as a strong 4 wheel drive.
Rexona teamed up with Clear andenhanced the World Cup fever with afootball pitch display which also identifiedit as a product intended for athletes andsport junkies.The unit in the middle was filled with freesamples .
Sunsilk had an impressive display which could be seen from quite a distance due to its striking size and vibrant colors. The simple design also allowed the showcasing of the product lines.They boasted having the worlds 7 hair gurus;“Co-created by the 7 best hair experts in the world” !
This colorful KDD display achieved greatstandout amongst other drinks and gaveshoppers information with the built inscreen. Such displays are highlydisruptive in congested areas.
Pepsi, strikes again, and gave shoppers theopportunity to win several prizes with thisdisplay which included a Toyota FJ Cruiser.
Gillette Fusion Power useddie-cuts on their display toattract shoppers. The vibrantnew colors identified theproduct as something new fromthe normal range of productsand displayed 3 easy steps toshaving using their product line.
We always look for some sort of object to reflect off after using tissue.Kleenex has just made our lives more practical by providing a built in mirror on their packs.The graphics chosen for this neat display cut through the clutter by using dark colors to standout against the typical bright displays found in store.
Coca Cola made a smart promotion that includeda water bottle with every Coca Cola large bottlebought. This promotion was put at the beginningon the aisle so it caught customers’ attention.Marlboro showed off its new Touch pack byplacing it right in front of the cashier in a premiumpack display.