In 2021, as the United Arab Emirates essentially returned to normal post-pandemic, hypermarkets saw a decline. During the COVID-19 pandemic, hypermarkets benefited from the consumer preference to shop at grocery stores and eat meals at home.
Majid Al Futtaim Hypermarkets, Carrefour’s franchisor in the region, expedited its digital transformation during 2021. The pandemic led to a huge surge in orders via its online platform, which constituted a small share of its business pre-pandemic.
As eating occasions moved into the home due to working from home and limited socialising, so grocery retailers such as hypermarkets and supermarkets experienced pandemic profits, and many invested in their digital footprint in 2021. Many hypermarkets have future plans to fully automate the storage, sourcing and delivery process.
Hypermarkets appeal to many price-conscious consumers because they tend to offer appealing promotions with regard to bulk purchases. The first and only discounter in the United Arab Emirates, Landmark Group’s Viva, is also adopting this strategy and is undercutting the prices of essentials in the country to an unprecedented degree.
The top hypermarket chain in the United Arab Emirates is Carrefour, owned by Majid Al Futtaim (MAF), benefiting from its strong brand and the perception of trust and efficacy that it engenders. One of the reasons behind Carrefour’s success has been the strength of its communications, with its customers indicating that safety is their top priority.
Concerns about sustainability are growing rapidly amongst consumers in the United Arab Emirates, especially since the majority of food products are imported and tend to have a high carbon footprint. Consumers are also conscious of the use of plastic packaging, responsible sourcing and the environmental impact across the supply chain.
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Hypermarkets are chained or independent retail outlets with a selling space of over 2,500 square metres and with a focus on selling both grocery and non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites with large parking lots or as the anchor store in a shopping centre. Example brands include Carrefour, E Leclerc, and Walmart Supercenter.
See All of Our DefinitionsThis report originates from Passport, our Hypermarkets research and analysis database.
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