War and peas

Forget own label bargains and special offers for time-poor, cash strapped shoppers; the region’s retailers are focusing on gourmet concepts targeting high-end consumers.

In its bid to tap into speciality food sales and the upscale market, Dubai-based shopping centre Festival City will feature a food hall at the upcoming luxury extension, the director of retail leasing for Al-Futtaim Group Real Estate Philip Evans has revealed.

Tipped to span 40,000ft², the high-end grocery offer will not compete with the everyday shopping offer at the development’s existing anchor HyperPanda.

Dubai World company Nakheel has entered a partnership with leading US food retailer Balducci’s to open its stores across the Middle East, the first of which will open at the Dubai Mall at the end of next month.

Balducci’s, which operates 10 stores on the East Coast, will provide the freshest produce and debut new products to the market, from imported cheeses and seasonal vegetables to freshly made soups and speciality sandwiches.

Also jumping on the gourmet bandwagon is industry newcomer Aswaaq, which according to COO Eric Poiret, is looking to develop a “fine grocery concept with specific, high-value products for the FMCG area, to include standalone stores”.

These major moves will, most likely, result in a roaring trade and be welcomed by wealthy shoppers seeking artfully-presented, internationally-sourced delicacies.

However, aside from the Ministry of Economy’s fantastic initiatives in recent months to freeze prices in the UAE, more could be done by the region’s retailers to slash prices for shoppers on strict budgets.

Branded suppliers were left reeling in the UK recently, as Tesco and Sainsbury’s both launched concerted campaigns promoting their own-label ranges at the expense of brands.

Richard Brasher, commercial director of Britain's biggest retailer, said price was now more important to consumers than it had been for 20 years as he announced a range of 350 cheaper branded goods that will go into Tesco stores.

Meanwhile, ASDA announced more than 5000 price cuts, claiming that by lowering the price entry point to fresh food, value-conscious shoppers could slash their weekly shopping bill by more than 50%.

In recent weeks, the incredible rush among British retailers to launch value ranges, cut prices and promote own labels has been commendable in a market hit by an economic downturn. And Middle East retailers could certainly learn a lesson or two.

Lynne Nolan is the editor of Retail News Middle East.

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