Dubai: The UAE’s retail sector is in a state of flux, with a series of developments over the past two years shaking up what was a relatively stable industry up until that point.
The sixth edition of the Middle East Retail Forum (MRF) begins on Monday at the One&Only Royal Mirage in Dubai, running from November 27 to 28, against a backdrop of a weakening consumer segment, exacerbated by a low oil price environment, and a drop in tourist spending.
According to the event’s organisers, it’ll focus on the “positive power of disruption.”
Disrupted is one word to use to describe the UAE’s retail sector in recent years: Older, less dynamic brands have been making way for new up-and-comers, e-commerce has taken off with the arrival of Amazon and Noon.com, and mall operators are charging ever higher rents, not always in line with the sales conversion their tenants are experiencing in-store.
According to retail expert Colin Beaton, the closures are simply a sign of the times.
“This is a reflection of the retail market maturing. You need an efficient marketing operation, a sophisticated business strategy, and many more things to compete. Companies that cannot operate efficiently and effectively will not survive,” said Beaton, managing director of Limelight Creative Services, a retail strategy firm.
He added that the ‘Build it and they will come’ approach of the past would not work any longer.
“In this soft economy, you will have a shake up and the companies that aren’t able to operate and market effectively will not be able survive, but that’s the sign of a mature market. Those who aren’t good, or who aren’t efficient or who don’t keep their promises won’t make it,” he said.
The two-day gathering will feature a number of retail business owners, CEOs and industry experts, sharing ideas and insights on how to grow the business of retail sustainably.
Issues expected to be addressed include entrepreneurship with borders, creating culturally sensitive business environments, and happiness.
