Choithrams, the UAE-based supermarket chain, is to almost double the number of shops across the country and is opening smaller convenience store versions of its big supermarkets for the first time.
Nineteen new outlets will be added to the company's portfolio of 27 supermarkets across the country.
With more new grocery chains setting up shop in the Emirates, Choithrams decided to up the ante to stay competitive, said its director Manoj Thanwani.
"We've had to readdress where we are in terms of positioning," he said. "Due to that, we've had a very close look at our concepts and our stores and really created a new brand manual and a new identity which we will be rolling out in future stores." Sales at major grocery retailers across the UAE last year hit an estimated US$7.7 billion (Dh28.28bn), up 10.5 per cent from the year before, according to the UK-based research company Business Monitor International (BMI).
This was a slower rate than the 16 per cent sales growth in 2008 but mass grocery sales are tipped to grow in the long term. By 2013, sales at retail outlets such as Spinneys and Carrefour are expected to increase by 80.1 per cent, BMI says.
In turn, new grocery brands are entering the market and existing players are widening their footprints. The French supermarket chain Auchan opened its first outlet in the UAE in October in Dubai, with plans to launch 15 hypermarkets and 40 supermarkets across the GCC in the next decade.
Another French brand, Geant, has unveiled plans to open a hypermarket on Yas Island in Abu Dhabi. It has already opened one convenience store, called Geant Easy, in Dubai and has plans to open about 20 more across the GCC.
David Edwards, the managing director of IMES Consulting Group, a market research company based in Dubai, said competition in the Emirates had become fierce and Choithram was wise to take action.
"If you think of Choithrams stores, you think of pretty narrow aisles and pretty crowded stores, which are quite distinct, say, from Spinneys and Carrefour," he said.
"So it probably needed to do something to freshen their format in the face of more aggressive competition." Choithrams has been working with a design consultant to revamp its look and it opened the first of its new outlets, a convenience store, in Dubai's Jumeirah Beach Residence last week. The company has spent "millions of dirhams" on its new image, said LT Pagarani, the chairman of Choithrams.
"The core theme running through [the stores] is the ambiance, which will be clean, bright and not cluttered ? a lot of the [old] sites we inherited from existing buildings and we faced challenges."
The shift towards sleeker stores also reflects changing preferences in the region, Mr Edwards said.
"Historically, we have seen this in Saudi. Locals in Saudi in particular, they kind of like a slightly more cluttered feel for their stores in many ways, in the sense that its a bit more like the old souq type of approach," he said. "And [many think] anything too clean and modern is probably going to be charging you through the nose for the privilege. But I think with the varied population in Dubai that Choithrams has probably chosen the right route to go."
The chain will open five outlets over the next five months or so, said Mr Thanwani.
These include a 33,000 square foot store in the DEC towers in Dubai Marina, a 40,000 sq ft outlet in Jumeirah Lakes Towers and a 22,000 sq ft store in Dubai Silicon Oasis, he added.
Depending on how the new look is received by customers, retrofitting of the company's existing stores will begin in October, said Mr Pagarani.
Their expansion strategy also includes setting up stores in newer neighbourhoods, such as Dubai Marina, as they develop.
"We have taken a well-assessed step of confidence in locating here while occupancy improves, rather than waiting for occupancy to build up then coming post that," he said.
aligaya@thenational.ae
SPECS
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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Inside%20Out%202
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SCHEDULE
6.30pm Maiden Dh165,000 (Dirt) 1,400m
7.05pm: Handicap Dh170,000 (D) 1,600m
7.40pm: Maiden Dh165,000 (D) 1,600m
8.15pm: Handicap Dh210,000 (D) 1,200m
8.50pm: Handicap Dh210,000 (D) 2,000m
9.25pm:Handicap Dh185,000 (D) 1,400m
Amith's predicted winners:
6.30pm: Down On Da Bayou
7.05pm: Etisalat
7.40pm: Mulfit
8.15pm: Pennsylvania Dutch
8.50pm: Mudallel
9.25pm: Midnight Sands
It’ll be summer in the city as car show tries to move with the times
If 2008 was the year that rocked Detroit, 2019 will be when Motor City gives its annual car extravaganza a revamp that aims to move with the times.
A major change is that this week's North American International Auto Show will be the last to be held in January, after which the event will switch to June.
The new date, organisers said, will allow exhibitors to move vehicles and activities outside the Cobo Center's halls and into other city venues, unencumbered by cold January weather, exemplified this week by snow and ice.
In a market in which trends can easily be outpaced beyond one event, the need to do so was probably exacerbated by the decision of Germany's big three carmakers – BMW, Mercedes-Benz and Audi – to skip the auto show this year.
The show has long allowed car enthusiasts to sit behind the wheel of the latest models at the start of the calendar year but a more fluid car market in an online world has made sales less seasonal.
Similarly, everyday technology seems to be catching up on those whose job it is to get behind microphones and try and tempt the visiting public into making a purchase.
Although sparkly announcers clasp iPads and outline the technical gadgetry hidden beneath bonnets, people's obsession with their own smartphones often appeared to offer a more tempting distraction.
“It's maddening,” said one such worker at Nissan's stand.
The absence of some pizzazz, as well as top marques, was also noted by patrons.
“It looks like there are a few less cars this year,” one annual attendee said of this year's exhibitors.
“I can't help but think it's easier to stay at home than to brave the snow and come here.”
COMPANY%20PROFILE
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The%20specs
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
Company%20Profile
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5