Value-added victory

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Branded items are most popular among customers.

HyperPanda, one of the Middle East's leading grocery food chains in the retail subsidiary of Saudi Arabia's Savola Group, took its first steps outside the Kingdom in 2006.

The inaugural store at Dubai's mixed-use development Festival City has witnessed a slow start, yet the rapid development of neighbouring retail giants at Festival Centre has hugely bolstered footfall.

Retail News Middle East has awarded the store with its prestigious Hypermarket of the Month title in recognition of its strength despite the inescapable ups and downs of business at a new destination and soaring competition from international newcomers.

Thomas Galet, store manager, Al Azizia Panda United, Dubai Branch, says competitive pricing, freshness and quality have positioned the outlet as one of the most aggressive in the market.

"We are trying to compete with the cheaper chains, and our merits include wide aisles, attractive prices and regular promotions. We are focusing on customer service, and we ensure a swift service is delivered," he says.

Galet attributes positive customer feedback to the increased responsibility given to the 300-strong employees across the 11,000m² store, reaching 17,000m² in capacity with its offices and warehousing facilities.

After his recent recruitment drive in Sri Lanka, Galet hopes to hire 50 new members of staff from the country in the final selection, yet he emphasises that staff must speak English to work at the store. The management team includes French, American, Indian and Egyptian professionals, with other source markets including the Philippines and Syria.

The store's unique selling point is its pharmacy, the first healthcare concept developed within a hypermarket in Dubai, which focuses on high-end brands. Additional value-added propositions include the store's bakery serving a plethora of fresh Arabic breads, its fishery and an extensive line of fresh produce.

Shoppers' increasing awareness of healthy eating, sustainability and higher quality food has prompted a sea change for HyperPanda.

"We have built up our image in Dubai and thrived alongside competitors based on the freshness of our products."

Turnover is set to surge after delays in the opening of the mall at Festival City held back its first year of business.

"The first year was very difficult, yet the opening of the food court a few weeks ago and other stores will ensure this location is quite strong in the future."

Location has been central to the growth of non-food items - accounting for 45% of sales - in recent months, owed largely to HyperPanda's adjacency to the UAE's largest IKEA destination store.

"We have a very strong appliances section, and our non-food division boasts a broad range of home linen, mobile phones, computers at credible prices."

The store has found far-reaching appeal yet predominantly among local customers, Galet says, with branded items the greatest contributors to growth.

"Although we offer a huge number of cheap items with unknown brands, customers are requesting branded products in most cases."

Although applauded for its customer care, product placement, dedicated fresh produce sections and colossal variety of products, Galet adds that the store truly stands apart in the market for its welcoming and smiling brigade of staff.

As the team revs up for an ever-increasing influx of customers, Galet faces his biggest challenge yet: continuing to set high standards for newcomers to chase.

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READERS' COMMENTS

Delivery
Posted by La Luna, Dubai, UAE on Wednesday 12 November 2008 at 22:37 UAE time


The store delivery is not coordinated, the management should work out for customer satisfaction by keeping what they have promised.

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