Trends On the Future of Middle East Retail

Revamping is the one everlasting goal for the retail CEOs of the Middle East. If they have to sustain in this competitive world, then naturally changing like other retailers across the world based on the technologies is inevitable. But in the region, the latest trend so far has been online retailing. Eventually, customers are price sensitive and they are not much aware of the brand. Because of these categories, they are improving the economy.

The concerns of retail CEOs were:

  • How to develop the quickness to acknowledge the transformation of markets and new customer needs.
  • How to charm customers and maintain
  • How to keep up with the stride of the latest technologies for the long term in the region

Although retail CEOs have experienced the online sensation, yet they are just surviving with sales and not that much profit.

Some are concerned about the drastic changes that stopped their business altogether, the reason being the issues with oil prices and instability in the growth.

Although in the future the global economy will improve along with the Middle East, yet there is uncertainty with the CEO’s operational efficiencies to drive profitability in the coming months.

There is uncertainty with the CEO’s operational efficiencies to drive profitability in the coming months.

Also, this pandemic has taught us that time, and the tide will wait for no one. Experiencing the changes, we live, work, shop have been more crucial these past 16 months. For the retail sectors, the changes are negligible. The commercial developers and owners have gone through intense pressure with their incomplete work. The customers had to undergo a rapid change with the developing technology.

Expecting changes for the retailers with these four trends in the UAE region;

The focus on the experience:

We all are suffering because of Covid-19, as it made everyone stand still. During these day’s shopping was limited to only online, and it made the customers experience recent changes as it was for a certain period. Now, as the world is opening, the need has been released and retail expects sales to grow by at least 13% in the UAE region. We expect the profit to be $58 billion by the end of 2021. While the in-store shopping looks bright yet there are uncertainties with the shopping center owners and building owners. They are exploring how to use the space, giving customers different reasons to visit again.

In the long run, attractions past dining and shopping will be the answer to sustain their visit. We can see this change in the recent development in the retail sector. Take, for instance, Emaar Malls, which has completed the expansion of The Dubai Mall village growth project, with the addition of 21 advanced sports and lifestyle stores.

Another change we can see in the Mall of Saudi that will open by 2024 with the region’s important shopping destination that will offer a five-star luxury hotel, 62,700 square meters of relaxing and amusement facilities, and a 40,000 square meters indoor ski slope and snow park besides 600 stores.

Demand for liveability:

Another life-changing trend would be that retails are concentrating on liveability. The UN estimates that seven in ten people will live in cities by the end of 2050. As this will turn cities more populated, they will demand there in intensifying liveability standards by citizens.

For instance, Riyadh focuses on becoming one of the 10 largest economic cities in the world. So, it has developed several initiatives that will add quality life for residents, that innovative and creative retailers have sponsored.   

Digital evolution:

Technology continues to play a vital role in space. Experiencing the revolution of space in the retail sector, it will host perfect and appealing technology.

For instance, K11 MUSEA: a museum-retail target in Hongkong. It uses MXP technology to combine all digital helpdesks beyond the shopping mall, that involve interactive displays, websites, social media advertising. Explorers in that mall can fit events, food delivery, movies, and shopping, all in one app.

Social center points:

It’s been months since the lockdown and limitation. People are longing for human connection. In this aspect, the retailers can put interaction and investigation at the heart of their retail experience, which will yield long-term awards.

For instance, LEGO, which focuses on providing spaces to play and purchase. It emptied a quarter of its space from the shop floor to make space for children to play. This idea was successful as it tasted a 30% increase in their profit in the first year. They later copied the model in all malls around the world.     

Contributing room for social interaction can generate success for retailers by 2021. It will offer profits and sharing opportunities.

Space to thrive:

The drastic shock and change that the entire world has undergone in the past year are important in human history. The method we live and work in is unexpectedly altered. But for retailers, it is both unsettling and stirring. In this struggle, those who can remodel and offer what today’s customers are looking for raise to not only pull through but also thrive.

Priya
I, Priya Nagarajan, is a past Assistant Professor, mentor, tutor, counselor. Writing has always been a passion of mine and so changed my path to my passion. I believe language is the best way to convey your thoughts and dreams to get the results. I believe it takes a personal approach to reach individual success. I write with a flair for creativity and a keen eye for the professional.

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