The excise taxes on carbonates (excluding sparkling water) and energy drinks are impacting sales of food and drink via internet retailing. In October 2017, the United Arab Emirates began taxing soft drinks, energy drinks and tobacco in an effort to curb overconsumption.
The United Arab Emirates is an expatriate-driven culture, where many technocrats and young professionals from around the world come to further their careers. Since they tend to be away from their families, there is a strong culture of dining out amongst expatriates in the country.
As pure play online players are engaging in active promotional and sales campaigns, grocery retailers with an online presence are also aiming to improve the utilisation of online platforms to increase their sales growth. For example, Lulu Hypermarket launched the Lulu Online Bonanza, focusing on active promotions on groceries over a period of four days.
Pure players such as trolley.ae and supermart.
Arriving relatively late to the game, the regional online retailer Noon.com expanded into online grocery retailing in August 2018, and began selling and delivering a wide range of products, including food, toiletries and household cleaning products.
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