UAE | General
Well-known retailer branches out
Family-owned business serving UAE residents since 1975 with wide range of products has plans to open several new stores and a hypermarket.
- By Mahmood Saberi, Senior Reporter
- Published: 23:53 July 10, 2008
- Image Credit: Karl Jeffs/Gulf News
- A view of the Choithram store at Safa Park in Al Wasl.
Dubai: "Convenience foods are taking off in a big way. Consumers don't expect retailers to offer them spaghetti bolognaise in a can anymore. They want it fresh, with a one-day shelf life. They want to pop it in the microwave and eat," said Manoj R. Thanwani, managing director of T. Choithram and Sons.
"In a way we are making people lazy in this country," he said, speaking on how people's taste in food has changed over the years.
"Today husbands and wives both work. Kids need to be taken care of. They need convenience foods."
But he points out that the sale of fresh products has gone up. "People are more health conscious," he said.
Choithram, which first opened its doors in Bur Dubai in March 1975, has since expanded into becoming the ubiquitous "neighbourhood store" in virtually every area of Dubai and also into the other emirates.
"We have created a loyal clientele. If you are from Bangladesh or from as far away as South America, you will find the products you are familiar with on our shelves," said Thanwani.
He believes there are only a handful of modern retailers in the country today, but points out that many more retailers (including a new French retailer, Auchan) will be coming into Dubai.
The Choithram group has 26 stores and 17 more are under construction. In October this year it will open in Dubai its "first of many" hypermarkets. The 119,000 square foot hypermarket will be located in Arabian Plaza, on the way to Mirdif.
"The concept will be different from our retail stores," said Thanwani. The minimum floor space required for a hypermarket is 60,000 square feet.
On rising inflation Thanwani said food prices are beyond anyone's control.
He said it is very tough to say what's coming in the months ahead but noted that his group will always ensure stocks are available.
"We are blessed with 900,000 square feet of space [in Al Quoz] and are able to buy foodstuffs and store for 60 to 90 days at existing prices," he said, but warned that there was no doubt that prices will rise further.
Retailers recently started working with manufacturers and distributors in collaboration with the Ministry of Economy and agreed to try and keep down the cost of core products temporarily.
The group director said people are not buying less despite the price hike.
"Foot traffic has increased, there has been no drop in consumption. We can't speak for the rest of the trade sector but we are steadily growing, year in and year out," he said.
Free market
"This is a free market and will remain a free market," said the manager.
"We appreciate that the ministry is working on behalf of the end consumer. But when it tells us that basmati premium rice from Pakistan must retail at Dh475 [for 40kg], in all fairness, you cannot retail at that price."
Thanwani said: "Remember, there is no federal decree. Each emirate has its own independent rules and regulations," he said, warning that the end consumer will suffer if retailer's profits are reduced.
He said the government has to buy and ensure the availability of core essentials, like in Australia and other countries, to support the industry. "That's not happening here."
Thanwani cited how crop shortage and rising consumption has had a knock-on effect globally.
"The prices of raw material have gone up dramatically, freight rates have increased. People desperate to freight their goods are willing to pay $3,000 [about Dh11,000]," he said. "Fuel surcharges for air freight have gone up five times since 2007."
The Choithram group has signed up with a company in Fujairah to manufacture bio-degradable shopping bags.
"Time is of the essence," said Thanwani, on the issue of pollution. The Choithram stores consume 35,000 bags every month.
Born in Africa: A long history
- The family-owned business was established in Sierra Leone, West Africa, in 1944.
- Choithram opened its first supermarket in Bur Dubai in March 1975.
- Today it has a presence in 27 countries.
- The company is also involved in various charitable works. Its new hospital in India was opened by the President of India.
- Has 1,800 staff members.
- Has 26 stores across the UAE.
- 17 more stores planned, mostly in New Dubai.
- First hypermarket opens in October in Dubai in Arabian Plaza, situated on the road to Mirdif.
- Is distributor of various brands around the globe.
- Dubai is its export hub.
- Has mills and pre-packaging plants in the United Kingdom.
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