The consumer trend of opting for healthy foods continues to grow in the United Arab Emirates, as more people, especially millennials, look for alternatives such as organic, vegan and gluten-free offerings. Traditionally, such choices were exclusively the realm of premium offerings, but hypermarkets are continuing to address demand by offering more budget-friendly healthy foods.
Many hypermarkets were able to keep prices low by renegotiating with their supply chains to help offset the recent implementation of VAT. For example, Carrefour from Majid Al Futtaim Hypermarkets was able to avoid price increases on about 40% of its stock by renegotiating with its suppliers.
The number of promotions in 2018 was record-breaking, and was a stimulus for growth. For instance, Union Co-operative Society revealed that it had allocated USD31 million to launch over 40 promotional campaigns in 2018.
Following Majid Al Futtaim’s strategic acquisition in 2017, acquiring the rights for Géant hypermarkets and supermarkets in the region, it acquired the largest distribution warehouse in Dubai’s Jebel Ali. At 1.
In December 2018, it was announced that both Carrefour and Lulu Group International were accepting Nol Cards (a card topped up for use on public transportation) as a form of payment in their outlets. The Nol card can be used in all Lulu stores across Dubai and Sharjah, whilst Carrefour only accepts the card in its Dubai-based shops.
Majid Al Futtaim’s Carrefour retail brand introduced its Scan & Go system, whereby customers scan their MyClub loyalty barcode and pick up a personalised scanner. The device is docked in the shopping trolley, and the user scans and bags any items they want to buy.
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Discover the latest market trends and uncover sources of future market growth for the Hypermarkets industry in United Arab Emirates with research from Euromonitor's team of in-country analysts.
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