For UAE shoppers, discounts are not what matters most at supermarkets

Dubai: UAE shoppers love discounts – but that’s not the only reason why they would prefer one retailer over another.

Instead, shoppers want to have it easy when it comes to finding products at stores. In fact, as many as 60% of those surveyed in a recent poll say having it easy in supermarket aisles is ‘more important than offers’. The findings come from SixthFactor Consulting and were based on insights from more than 600 shoppers at major hypermarkets in Dubai.

That a good number of consumers require ease of shopping over straight discounts is a surprise. UAE retailers are frequent when it comes to launching multiple promotions through the year, including Dubai’s 3-day mega-sales when up to 90% discounts are available across categories.

“In a hyper-competitive landscape like Dubai, the key to supermarket success is no longer just price wars,” says the SixthFactor report. “Shoppers are looking for clarity, convenience, and confidence in their choices — and retailers who fail to evolve risk falling behind.”

The UAE’s hyper- supermarket landscape is turning meta-competitive, with weekend traffic being the make-or-break for these retailers in their month-on-month sales. Which is why not having clear messaging on promotions.

And keep the spaces right at the stores. This is a clear need.

According to one Arab expat shopper polled by SixthFactor, “I couldn’t even tell what the offer was and how much the discount was, so I just walked away.”

Retailers can’t afford to let that happen.

In recent times, UAE hypermarket operators have added hot kitchens/food counters, which has turned into a high volume, lucrative category for them. The SixthFactor survey offers no surprises when it finds that 60% of family-shoppers want supermarkets to have hot meal options and ready-to-eat counters.

But the bread-and-butter sales are still from everyday grocery and merchandise items. Which is why ‘store atmosphere is as important as product selection’. Here’s what one Western expat had to say: “I don’t want to feel like I’m shopping in a warehouse. I want a good experience.”

Even when it comes to online shopping, UAE shoppers have their peeves.

In a recent report by Visa, 40% of respondents cite the ‘biggest frustrations’ with online checkouts are ‘security concerns’, followed by the ‘hassle of entering card details manually’.

“By addressing these challenges, retailers can enhance the checkout experience which could lead to increased customer satisfaction,” says Visa in a statement. (Visa’s ‘Checkout Friction Report’ finds that one in three respondents from the UAE shops multiple times a week for groceries. For categories such as fashion, entertainment and electronics, the shopping frequency ranges from once to a few times a month.)

According to the Visa report:

* 58% of consumers are worried about the risk of fraud or hacking when storing their card details on multiple websites.

* And 42% of respondents experienced fraud or security breaches.

"Challenges in the online checkout process have direct implications for businesses, resulting in lost revenue, and hampering both customer acquisition and retention," said Salima Gutieva, Visa Vice-President and Country Manager for UAE.

"Today’s consumers expect – and deserve – a more seamless and secure ecommerce experience."