Business | Markets
LuLu joins hands with UAE to rein in food inflation
Emke Group, which operates the LuLu hypermarket chain, became the first private sector retail chain to join hands with the Federal government to curb rising prices of essential food items.
- Gulf News Report
- Published: 19:19 April 6, 2008
- Image Credit:
- The Emke Group operates 37 supermarkets and hypermarkets across the UAE, will keep the prices of 32 basic items steady throughout 2008.
Dubai: Emke Group, which operates the LuLu hypermarket chain, on Sunday became the first private sector retail chain to join hands with the Federal government to curb rising prices of essential food items.
Sultan bin Saeed Al Mansouri, Minister of Economy, and Yousuf Ali M.A., managing director of Emke Group, on Sunday signed a memorandum of understanding at the Ministry of Economy in Dubai to freeze prices of certain foods.
The company, which operates 37 supermarkets and hypermarkets across the UAE, will keep the prices of 32 basic items steady throughout 2008.
They include rice, sugar, oil, flour, tea, butter, milk and poultry, the Ministry of Economy said.
Emke Group operates 69 supermarkets and hypermarkets across the Gulf and Yemen and has 310,000 footfalls per day. It controls about 32 per cent of the UAE's organised retail sector, according to industry estimates.
The deal with Emke Group follows a similar agreement with the Union Cooperative Society last month to maintain the 2007 prices of 16 basic food commodities. Other cooperative societies responded to the MoE's request to sell many of their goods at cost prices.
The move, which aims to stabilise prices and alleviate inflation, complements a number of recent joint initiatives by the Ministry of Economy and Cooperative Societies.
"The initiative by LuLu Hypermarket to fix the prices of 32 food commodities emphasises the vital role that the private sector can play in contributing to price stability, maintaining market equilibrium and contributing effectively to the development of society and the national economy," said Al Mansouri.
According to a recent survey by the Emirates Consumer Protection Society, inflation is feared to hit 40 per cent this year.
Your comments
Good move by LuLu, but already rice is out of stock.
Aparna
Dubai,UAE
Posted: April 07, 2008, 12:20
Really it is good for middle class families and workers who get very low salaries. Most of them heavily suffer from price inflation. This planning is very useful.
Mahendran
Abu Dhabi,UAE
Posted: April 07, 2008, 11:59
Great! It shows that 'If there is a will; there is a way'. Mr. Yousuf Ali got this will, thus he got the ability to perform this great deed. Thousands of parents and their children are the beneficiaries of this act. Millions of salutes to LuLu!
Harilal
Dubai,UAE
Posted: April 07, 2008, 11:10
It is really great to find LuLu cares for the people by joining hands with government authorities to stabilise the prices. I am regular customer of LuLu and I find prices of commodities good, compared to any other markets, and hopefully it will continue through the years.
Shahriyar
Sharjah,UAE
Posted: April 07, 2008, 10:21
This is really a good step and all the hypermarkets should follow this step. Thriving hikes in prices are killing us badly. Hats off to Mr Yousef Ali M.A.
Jeena
Sharjah,UAE
Posted: April 07, 2008, 08:55
We find LuLu the best in comparison to any supermarket in the UAE in terms of price, quality and availability. Joining hands with the authorities shows how much LuLu cares for people.
Afaq
Dubai,UAE
Posted: April 07, 2008, 08:43
A week ago we bought ten kilos of rice from a supermarket for Dh38. Today, their price is Dh63 per 10kg. Is this price increase legal? This is what we call daylight robbery.
Lorenzo
Dubai,UAE
Posted: April 07, 2008, 08:16
This is a great initiative and will definitely help the common man with his monthly budgets. Although I am yet to understand as to how this will work and who will bear the cost. Rice, for example, how will Lulu keep the costs low when India has banned rice exports?
Rohit
Dubai,UAE
Posted: April 07, 2008, 07:57
It is a good initiative and hopefully will be effective in reducing the current price rise in the UAE market. Emke group's effort is appreciated and I hope other firms in the UAE will also take similar steps for this noble cause.
Abdulbasheer
Dubai,UAE
Posted: April 07, 2008, 07:06
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