Predatory bullying is blasted by El Accad

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“Selling below cost is common among retail chains.”

The CEO of Organic Foods & Café has hit out at price dumping and the obstacles faced by smaller supermarket chains trying to expand in the UAE.

Nils El Accad said larger chains have made lives harder for smaller rivals by using their financial might to sell products below cost and secure retail space with more ease at new developments.

Price dumping - the act of charging a lower price for a good in a foreign market than one charges for the same good in a domestic market or selling at less than ‘fair value' is "bullying," he said.

"Selling below cost is a common practise among retail chains here in the UAE, yet it is now allowed for some countries, and is damaging for long-term competition and the retail trade at the moment," he said.

El Accad said he feared the market could be whittled down to just major players if something was not done to prevent "bullying" from big chains.

"Smaller guys cannot get the locations, as the big guys block us whenever we try by tying up property developers. Developers like big names, and they are not giving the small guys a chance."

He said that global players "literally tie up property developers and say they cannot give retail space to us."

"I was not allowed to open in Uptown Mirdif because there is another supermarket there, am I really competition? They're here to make money and expand, and ethics slip when you do that. Profit motives bring about these actions."

He revealed that despite such huge challenges and efforts from global giants to stamp out the competition, the chain has preserved plans for new openings.

The five new stores will be half the size of existing stores, he revealed, with the same product lines.

"Abu Dhabi offers big potential as there's nothing similar there and it would be the most logical next step, Al Ain if the rent is right as it could be economically viable, and the up and coming economies in Kuwait, Bahrain and Qatar."

Organic Foods & Café has recently started a new recycling project, in conjunction with Jebel Ali Container Glass, which encourages consumers to return glass bottles for recycling.

In a final snipe at rivals, he said efforts among supermarkets in Dubai to enforce environmentally-friendly initiatives as "window dressing so far", and following the example of European industries by charging shoppers for plastic bags could make a difference.

El Accad added that the "liquidity crunch", rising rents and plummeting disposable incomes pose the greatest challenge to retailers in the UAE.

"Milk prices have doubled, and meat prices have gone up. People are much more conscious of where they're spending their money, so it is impossible for me to drop prices."

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