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Aisles of white

by ArabianBusiness.com staff writer  on Sunday, 11 November 2007
Increased investment in luxury real estate is said to have spurred non-food sales.

Manufacturers and retail giants are flocking to the Middle East to cash in on the current boom within non-food sales at local and international hypermarket formats.

"Over the last 10 years or so, since their entry into this market, hypermarkets have steadily taken market share from the rest of the trade, and perhaps the area where their influence has really been felt the most is non-food, says Ajai Dayal, general manager retail and marketing, Easa Saleh al Gurg Group.

Dayal believes the secret to hypermarkets' success is thanks to the ease and convenience of shopping that they offer and the range of products available to consumers.

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"In this business of electronics and appliances, hypermarkets are estimated to have around 30% of business,' he says.

The Easa Saleh Al Group was founded in 1960, and now has 23 companies under its wing handling more than 200 franchises. The company manufactures for sectors including electrical and electronic items, personal care and branded garments.

Dayal reveals that its biggest selling brands in the Middle East are Siemens, Electrolux, Zanussi, and Fisher & Paykel.

"Our company Better Life would be the leader in the middle to upper segments of home appliances in the UAE, selling washing machines, dishwashers, refrigerators and cookers," he says.

He adds that ID Design stores are seeing exceptional increases in terms of sales of home furniture and furnishings.

The main driver for growth of non-food sales is the quickly increasing population in the UAE, Dayal says, and the fact that more and more people are investing in their homes and apartments.

"For this, they do not want to compromise in getting the best appliances or furniture and furnishings, we are trying our best to make our products as easily accessible as possible for our customers," he says.

"In today's market, at all levels, convenience and service pay an extremely important role in achieving success."


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