Mr Cooperative

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MOJICA: shoppers need to be educated about buying during promotions to fight inflation.

The boss of Abu Dhabi's biggest retailer is determined to lift the climate of frustration caused by inflation among consumers.

After 40 years in retail management, Abu Dhabi Co-Operative Society's general manager Georges MJ Mojica has identified sure-fire techniques to maintain the 'value' status of supermarkets in the eyes of consumers.

"Private labels are suffering these days as international brands are in a better position to absorb price increases, however the former products are still 15-20% cheaper so we are educating consumers that they have to be smart and buy during promotions."

In a bid to be closer to consumers' expectations, the company has initiated an aggressive marketing strategy, incorporating price-cutting campaigns, market and shopper surveys, distribution of its weekly catalogues to 120,000 households and continuous promotion and extension of its private label portfolio.

Mojica argues that highlighting the presence of its private labels "anywhere there is a major category, from coffee and tea to shampoo and biscuits" and spreading "the logic of our business" will collapse any misconceptions about the category.

"We are partners with them [consumers], not against them, not fleecing them, giving them fair value for money. They have to trust us."

The outspoken retailer says the industry is facing major challenges with "horrendous" rent prices and recruitment costs in Abu Dhabi, and "the cost of doing business is becoming very expensive, everyone is very concerned."

"There is no point trying to put pressure on retailers to control the price of eggs or any type of product when rents are still going up. I think the Government should really start looking at the establishment of retail and consumer organisations, like in Europe and other parts of the world, how can we react together.

Mojica comments that Abu Dhabi Co-operative Society (ADCOOPS) is "running a business with a very small profit and has developed a twofold mission for social and business growth, so we are trying to keep everyone satisfied."

Despite the testing inflationary pressures in recent months, Mojica reveals the company plans to expand its reign across the UAE with new store openings, despite inflationary pressure in the tough economic environment.

The blueprints adorning the walls of his downtown Abu Dhabi office also communicate the major changes ahead.

"We have plenty of plans but we're quite concerned about the price of the real estate, and due to our 'value for money' image and the fact retailers are facing constant criticism over rising prices, we have to be selective about where we go and with whom," Mojica says.

"When you look at the development plan of the UAE, from North to South and East to West, everything seems to be booming. We plan to open store formats in all sizes, and our huge warehousing facilities gives us an advantage."

"We just go and buy or rent premises coupled with a very strong balance sheet so that is giving us the flexibility we need to perform," he later reveals.

The Northern Emirates have emerged in force as emerging markets of significant potential, and the company has spelled out ambitious plans for openings in the area, its first venture outside Abu Dhabi, Al Ain and Sharjah.

"We have blueprints for three more stores which could open by the end of the year, probably in the Northern Emirates," he reveals.

Mojica is the right man for the job of expanding while simultaneously fending off rising commodity costs, increasing competition and low margins. He has ensured constant transformation at the helm of Abu Dhabi Co-operative Society since 1989, and more than quintupled its operation from three to the current total of 16 stores.

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