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Dubai leads the way for retailers, says Landmark Group CEO
Landmark Group was established in 1973 with a single store in Bahrain. It now operates over 750 stores in 11 countries. CEO Vipen Sethi talks about the group's views on the retail industry
- By Irish R. Eden Belleza, Web Coordinator
- Published: 23:41 June 29, 2008
- Vipen Sethi, CEO, Landmark Group.
- Image Credit: Supplied picture
Landmark Group was established in 1973 with a single store in Bahrain. It now operates over 750 stores in 11 countries. CEO Vipen Sethi talks about the group's views on the retail industry.
Gulf News: What is your assessment on the retail market in Dubai, the UAE and the rest of the region?
Sethi: Retail is going through an exciting phase regionally. Though each market in the Gulf may have its own distinct attributes - retail is a highly lucrative and profitable opportunity.
The region's sector is worth approximately $100 billion and is the fastest growing retail real estate market in the world, with more than 16.35 million square metres of Gross Lease Area (GLA) expected to be complete by 2010.
UAE is one of the most modern, sophisticated retail markets in the Middle East, and is an extremely attractive market for retailers with Dubai leading the way.
UAE will witness the highest increase in the sector, contributing 44 per cent of the GLA by the end of the decade. Dubai is experiencing a retail boom and forecasts reveal a 209 per cent growth in retail space to 4.25 million square metres by 2010, which will see the creation of some of the world's most extravagant shopping centres.
With growth at unprecedented levels, it's but natural that international players are eyeing the region with renewed interest. The pace is accelerated with rules for foreign direct investment being eased the region. For example, the GCC region accounts for more than 60 per cent (2005) of total retail industry in the Middle East.
Gulf News: What are the major challenges of a retailer in Dubai? How do you cope with these challenges?
Sethi: One key challenge in the retail sector that is of great concern is increasing costs of logistics and materials. We are addressing that by widening our spheres of control on the supply chain mechanisms.
The other major challenges facing the retail sector lately are the pressure on the regional consumer due to continued inflation and the continually declining dollar.
Consumer surveys are showing that there is an increased reluctance to spend these days. This has been due to the fact that consumers are increasingly unsure about their expenditure due to the increased cost of living. And sourcing and retaining talent is an issue.
Gulf News: One common issue with retail outlets is poor customer service. What do you have to say on the issue?
Sethi: It's usually a case of extremes - at one end you have store assistants who hover over you wrongly assuming that they are doing you a favour.
And on the other hand there are those who completely ignore you. Thankfully, things have begun to change - standards are definitely improving.
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