Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (4 Comments)Hypercorp eyes plan to reduce UAE food prices
by This email address is being protected from spam bots, you need Javascript enabled to view it on Friday, 30 October 2009
HYPERMARKET PRICES: Hypercorp has vowed to bring lower prices to customers in the UAE. (Getty Images)
Retailcorp, the former retail unit of Nakheel, has pledged to bring down food prices in the UAE by challenging the country’s major import agents, whose market dominance it called “a monopoly”.
Hypercorp, the company’s hypermarket division, opened French retail giant Auchan’s first Middle East store in Dubai’s DragonMart mall on Thursday.
Auchan, the world’s 13th largest food retailer, operates over 1,335 stores in 12 different countries.
“There are people that are making a lot of money, and too much money, on the supply side and on the retail side,” Hypercorp chief executive Jean Marie Teyssedre said of the UAE food market.
“Our objective is to break their monopoly and to pass on part of the savings to the customer.”
Hypercorp would use Auchan’s global buying power to bring down food prices and would not hesitate to import goods that local agents have priced too high, he said.
Around 200 import agents in the food sector are registered with the UAE Ministry of Economy, but 15 to 30 of them are estimated to control the bulk of the market.
The federal government passed a law in June 2006 to allow retailers to import products, including cooking oil, rice, flour, fish, meat, tea and cheese, without going through licensed import agencies.
Retailcorp plans to open 15 Auchan hypermarkets and 40 supermarkets across the GCC within the next 10 years.
Auchan will be a primary anchor in many of the community and regional malls in the company’s portfolio.
“We’ve got a watching brief on Saudi, but all the other markets in the GCC are priorities, and we’ll look at other markets in the Middle East and the rest of the region,” said chief executive Graham Dreverman.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Auchan
Posted by SJD, Dubai, UAE on Sunday 1 November 2009 at 10:31 UAE time
Regarding Pradeep Naik's comments, just a little note, if you notice carefully, it is 1335 STORES, and 490 hypermarkets, so there hasn't been a miraculous change in 3 days.
UAE is an open market, every new entity is entitled to having big plans. Lets be fair and give some time to someone instead of pouring cold water right at the start.
Regarding Nakheel, well, all the comments are true :-) DK, totally agree with you, being a resident of DG myself. If only they gave as much importance to our empty swimming pools and security locks!
Posted by SJD, Dubai, UAE on Sunday 1 November 2009 at 10:31 UAE time
Regarding Pradeep Naik's comments, just a little note, if you notice carefully, it is 1335 STORES, and 490 hypermarkets, so there hasn't been a miraculous change in 3 days.
UAE is an open market, every new entity is entitled to having big plans. Lets be fair and give some time to someone instead of pouring cold water right at the start.
Regarding Nakheel, well, all the comments are true :-) DK, totally agree with you, being a resident of DG myself. If only they gave as much importance to our empty swimming pools and security locks!
Don't Talk Just do & show
Posted by Pradeep Naik, Dubai, UAE on Saturday 31 October 2009 at 17:06 UAE time
Hey new comer Jean, I think yo have not done your homework before you gave interview.
In Gulf news it was 490th hypermarket & now on the web 1335 how come you have so many branches in three days?? Ha Ha..
How can you make the statement " Break the monopoly in food market" you first stand in the market become strong & then show us by bringing direct import of so many products.
At present your flagship is docked in sinking area with few fils reduced than any other grocery, full of cheap imitation chinese products, please compare apple to apple.
Result & turnover is the best policy, you cannot reach people just by few ads you must be loyal to them like Choitram, Lal's, LuLu.
Oh! forgot to mention in this country there are nearly 70% Asians more Indians. Please reconsider your challenge & back out. Anyway all the best for the rest of your dreams in uAE.
Posted by Pradeep Naik, Dubai, UAE on Saturday 31 October 2009 at 17:06 UAE time
Hey new comer Jean, I think yo have not done your homework before you gave interview.
In Gulf news it was 490th hypermarket & now on the web 1335 how come you have so many branches in three days?? Ha Ha..
How can you make the statement " Break the monopoly in food market" you first stand in the market become strong & then show us by bringing direct import of so many products.
At present your flagship is docked in sinking area with few fils reduced than any other grocery, full of cheap imitation chinese products, please compare apple to apple.
Result & turnover is the best policy, you cannot reach people just by few ads you must be loyal to them like Choitram, Lal's, LuLu.
Oh! forgot to mention in this country there are nearly 70% Asians more Indians. Please reconsider your challenge & back out. Anyway all the best for the rest of your dreams in uAE.
Good News from Nakhhel
Posted by DK, Dubai, UAE on Saturday 31 October 2009 at 15:20 UAE time
Pleased to learn that Nakhhel has started thinking of need of Supermarket / Hypermarkets as in their localities ( Garden , Discovery Garden), you have to walk miles to get a litre of milk / youghurt or Cold Drink.
Now since,Nakheel has decided to enter in retail market, shall suggest you to utilise empty space in Dicovery Garden (Between Street 6A and 7A -Contemporary Court) and open a Hypermarket surrounded with nice garden. I am sure that Hypermarket will not be a great success but with opening of Hyper market , Discovery Garden shall be full of residents.
Shall appreciate, if you could inform your plans of opening of Hypermarket in Discovery Garden as we really need this badly.
Posted by DK, Dubai, UAE on Saturday 31 October 2009 at 15:20 UAE time
Pleased to learn that Nakhhel has started thinking of need of Supermarket / Hypermarkets as in their localities ( Garden , Discovery Garden), you have to walk miles to get a litre of milk / youghurt or Cold Drink.
Now since,Nakheel has decided to enter in retail market, shall suggest you to utilise empty space in Dicovery Garden (Between Street 6A and 7A -Contemporary Court) and open a Hypermarket surrounded with nice garden. I am sure that Hypermarket will not be a great success but with opening of Hyper market , Discovery Garden shall be full of residents.
Shall appreciate, if you could inform your plans of opening of Hypermarket in Discovery Garden as we really need this badly.
Big dreams ...
Posted by realitysole on Friday 30 October 2009 at 19:27 UAE time
It seems either Hypercorp are Big dreamers or they do not have clue about what they say .
The company opened their first pioneer outlet AUCHAN in Dragon mart which is known as the Chinese shopping mall and sell middle /low class Chinese product (every one is presuming this is a Chinese chain).
Normally who talk big should act big also but you don't compare yourself to old chains or to careffour and loulou if you act like small supermarket in Murdif and Hatta especially when your investment , service and product collection are less than the average standard in UAE.
The UAE market never witnessed in the history a serious effect from any of these new comers and normally they take 2 to 5 years to learn or understand the market and start to respect other hypermarkets experience ( the best examples are Hyperpanda , Giant supermarket,...etc ).
In term of prices Nakheel have a history of being a follower instead of trend setter , and the best example are the rent price of the gardens, Discovery gardens, International city ...etc ( How it start and where it reach )
Posted by realitysole on Friday 30 October 2009 at 19:27 UAE time
It seems either Hypercorp are Big dreamers or they do not have clue about what they say .
The company opened their first pioneer outlet AUCHAN in Dragon mart which is known as the Chinese shopping mall and sell middle /low class Chinese product (every one is presuming this is a Chinese chain).
Normally who talk big should act big also but you don't compare yourself to old chains or to careffour and loulou if you act like small supermarket in Murdif and Hatta especially when your investment , service and product collection are less than the average standard in UAE.
The UAE market never witnessed in the history a serious effect from any of these new comers and normally they take 2 to 5 years to learn or understand the market and start to respect other hypermarkets experience ( the best examples are Hyperpanda , Giant supermarket,...etc ).
In term of prices Nakheel have a history of being a follower instead of trend setter , and the best example are the rent price of the gardens, Discovery gardens, International city ...etc ( How it start and where it reach )
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST RETAIL
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST RETAIL
LATEST MIDDLE EAST BUSINESS NEWS
- Sport: Westwood extends lead after Race to Dubai's Day 3
- Financial Markets: Saudi index down, banks and petchems weigh
- Real Estate: Merger technical talks to conclude in a month - Emaar
- Banking & Finance: Dubai's Abraaj eyes property investments
- Banking & Finance: Emirates NBD launches bank’s new brand identity
Mobile
