Sales officials and retail experts rule out its negative impact on outlets
The expansion of electronic platforms towards "grocery" is a new development that opens the door to competitiveness
The special nature of the foodstuff makes it difficult to convert in whole or in large part to it "online".
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Sales officials and experts in retail trade ruled out that the expansion of e-commerce platforms in their services, to include the grocery field, negatively affects large and small outlets.
They explained to "Emirates Today" that the impact will be minimal on large sales outlets, especially in the short and medium terms, pointing out that small sales outlets derive their strength from their geographical locations close to the population, and the high speed of delivery, which reduces the impact of that on them as well.
And they saw that the expansion of e-commerce platforms specializing in grocery is a new, but expected development, and it will increase competitiveness in the retail markets, and provide more diversified alternatives for consumers, but it will not completely eliminate consumers' association with outlets, but rather attract new classes of dealers, what It requires local sales outlets to launch innovative initiatives, expand offerings, as well as develop their electronic platforms in order to be able to compete more, making them more consumer-friendly, easier and faster.
Little effect
In detail, the Chairman of the Consumer Cooperative Union and Chairman of the Board of Directors of "Union Coop", Majid Hamad Rahma Al Shamsi, said that the entry of e-commerce platforms in the field of grocery sales will have a minimal impact on large outlets, especially in the short and medium terms.
Al Shamsi attributed this to the special nature of foodstuffs, which makes it difficult to purchase them in whole or in large part via the Internet, given the desire of consumers to verify their specifications before purchasing.
He stressed that traditional shopping will continue to be important in general, especially as it is a major part of visiting commercial centers, pointing out that the same global e-commerce companies and platforms are currently opening thousands of branches on “the ground” in many countries of the world, due to their conviction of the importance of traditional shopping, and that it is continuous and will not Perishes.
Tough competition
Al Shamsi pointed out that the competition between local sales outlets and global e-commerce companies in particular is difficult, given the large capital of these companies, and their continuous injection of millions of dollars into the market.
He stressed the need for local sales outlets to develop their electronic platforms significantly and quickly in order to be able to compete more, and to make them more consumer friendly, easier and faster.
Al Shamsi noted that the electronic platforms of sales outlets in general have witnessed development during the past period, and have become more user-friendly and faster in delivery, indicating that it is not possible to measure the peak period of the "Covid-19" pandemic, which was temporary, and in which requests multiplied, which prompted sales outlets to seek help. With delivery companies to support their platforms.
Stimulate confidence
For his part, the sales official at a major outlet in Abu Dhabi, Hafeez Khan, said that it is not expected that there will be a significant impact on sales outlets in the short term from the expansion of electronic platforms in their services, to include grocery delivery.
He explained that despite the unprecedented escalation of online shopping during the height of the pandemic, sales of outlets also witnessed, in the same period, varying increases, whether through their traditional outlets or their electronic platforms.
Khan stressed that this does not mean that sales outlets have not significantly developed their electronic platforms to make them easier and faster, because the future indicates a great development in electronic shopping.
He called on sales outlets to stimulate consumer confidence and loyalty to them, by offering discounts and offers that cannot be matched by the electronic platforms, focusing on creating new products of their own, and continuously improving display methods.
The need for development
In the same context, the retail expert, the former CEO of the Abu Dhabi Cooperative Society, Ibrahim Al-Bahr, ruled out that the entry of e-commerce platforms in the grocery field negatively affects the large and small outlets in the country, although the impact will be greater on the large outlets, by virtue of that «small »It derives its strength from its geographical locations close to the population, and the high speed of delivery, which reduces the impact of this on it.
Al-Bahar said that sales outlets, especially the large ones, still need to develop themselves quickly, whether through the "online" or through their geographical locations, pointing to special electronic platforms in outlets that still need a long period ranging between five and seven days to deliver goods to consumers, in A time when electronic platforms were successful in delivering on the same day, or within the next day at the latest.
Al-Bahar called on local sales outlets to urgently develop their electronic platforms and services over the phone, to increase the speed of delivery and expand the range of their services, to cover all goods and products that consumers need, in addition to increasing discounts offers in their original branches and through their electronic platforms, to be strong and competitive offers.
He said that competition works to improve service, increase quality and efficiency, which is always in the interest of consumers.
Digital evolution
For his part, Director of Corporate Communication Department at “Lulu Mall Group”, Nanda Kumar, said that the expansion of e-commerce platforms in grocery departments is one of the variables of digital development that will raise competitiveness in the retail sector, but it will not threaten the role of traditional outlets that offer A different shopping experience for consumers.
He added that the electronic platforms could attract, through expansion, new categories of consumers, pointing out that this prompted sales outlets, including Lulu, to develop their electronic platforms and increase delivery channels for their products.
He explained that although different segments of consumers will still have loyalty and association with traditional shopping operations from outlets as a way of life in society, this does not prevent sales outlets from developing their tools and completing their digital transformation processes by creating parallel platforms, in addition to adopting more On the innovation plans in trade, as a future necessity to keep pace with competitive changes in the sector.
Competitive and alternatives
In addition, Abdul Hamid Al-Khashabi, the spokesperson for the centers of the Aswaaq Group affiliated with the Government Investment Corporation of Dubai, said that the expansion of e-commerce platforms in grocery departments, and the establishment of what looks like virtual supermarket outlets, will have strong repercussions on increasing competitiveness in retail markets. Local, and the availability of more varied alternatives and options for consumers.
Al-Khashabi added: “It is possible that medium and small supermarkets outlets will be the ones that will be most exposed to the challenges of the coming competition, but the next stage in general requires the outlets operating in the retail sector to rely more on the mechanisms of innovation, development, and attention to digital transformation and smart services. Also, medium and small sales outlets should expand more in offering promotional offers and abandon large profit margins, to preserve consumers, and compete to attract a new number of dealers, especially with the increase in alternatives and shopping channels in the sector. ”He pointed out that“ Aswaaq ” During the recent period, it worked on developing its electronic platforms and cooperating with several parties to promote and deliver their products, which is in line with the sector's changes in increasing distribution channels.
Expected development
As for the Director of Supply and Merchandise Promotion at the Sharjah Cooperative, Rashid bin Hoyden, he said that the expansion of e-commerce platforms in the grocery departments is a new development, but it is expected in the markets, pointing out that this prompted the Sharjah Cooperative to prepare for some time to keep pace with market changes. This was evident through the development of its electronic platform, and the introduction of new ways to shop through the WhatsApp business application.
Bin Hoyden agreed that electronic platforms raise competitiveness in the sector and provide multiple options for consumers. However, they will not have severe impacts that threaten the existence of traditional sales outlets, especially those that keep pace with the new changes with continuous development plans.
He continued: “The traditional sales outlets are still an important option for several categories of consumers, especially families, and the electronic platforms, although they do not incur operational costs such as labor and rents, are similar to traditional stores, they have their own operational costs related to warehouses and logistical delivery fleets. To carry out its work ».
He pointed out that a number of electronic platforms expand grocery products through cooperation with sales outlets and cooperative societies. Therefore, competitiveness remains in limited frameworks currently in the market, but this does not prevent the outlets from continuing to develop their means of work.
Global market and investments
The CEO of "Baweek" for electronic applications, Rajeev Lee, said that there is no impact on the large and small sales outlets in the country in the short term, given the need for international companies such as "Amazon" to prepare infrastructure and establish distribution centers for fresh grocery items in the Emirates of the country. This needs a long time, especially since global market conditions are not good after the "Covid-19" pandemic, and it is difficult for large companies to pump huge investments in a short period.
He expected that the impact would be significant on major sales outlets, after preparing the necessary infrastructure for international companies, especially as the pandemic prompted consumers to use electronic platforms for shopping, and they discovered that they are easy to use and have high efficiency.
He called on sales outlets to develop their platforms, making them easier to use and faster in delivery, as well as establishing partnerships with small online shopping platforms, to quickly meet the demand, pointing out that the platforms of many sales outlets need at least 48 hours to deliver orders, while many can Big companies deliver within a few hours.
Carrefour Emirates: We are optimistic about the demand for online shopping
The director of "Carrefour Emirates" at "Majid Al Futtaim Retail", Philip Begijun, said that companies that do not give priority in providing their services via the Internet will face difficulty in competing, pointing out that the spread of the "Covid-19" pandemic has deepened this matter in light of the large number of Dealers who have chosen to shop online.
He added, "36% of new online customers still prefer to shop online, despite the lifting of movement restrictions and the conclusion of the national sterilization program."
He continued: “The expansion in the provision of grocery delivery services by e-commerce platforms indicates a great need and demand for these services, which is a source of optimism for us, thanks to the launch of several services in recent months, to meet the increasing demand for electronic shopping, the most important of which is the (Receive it) service. By yourself), which allows customers to receive their completed online orders by themselves from the (Carrefour) stores of their choice, ”pointing out that the service was recently launched in the Dubai International Financial Center, and it is equipped with a“ robot ”that delivers requests to customers.
He also referred to the expansion of the "Scan & Go" service, which allows customers to have complete self-service, including paying for their purchases electronically by themselves, without the need for the help of the "Carrefour" team.
Begiyun said that in recent months, Carrefour centers have witnessed a great demand for online shopping, pointing to the opening of a new online ordering center in Al Garhoud in Dubai, which is the largest of its kind at Carrefour, as it will handle up to 3000 requests per day. And it will gradually increase its capacity until it reaches 5,000 orders per day.
Expanding offers
The sales official in a chain of supermarkets in Sharjah, Muhammad Bashir, said that most of the medium-sized supermarket outlets have become more focused in the recent period on the policies of expanding offers, to support their competitiveness, in the face of the development of e-commerce platforms and major outlets. Selling supermarkets that lag behind in developing their working mechanisms to keep pace with the market will be the most affected.
Innovative products and services
Retail expert, Devi Nagpal, said that the expansion of electronic platforms, especially the global ones in the field of grocery, will have effects on large and small local outlets, pointing out that the strength of the impact depends on the ability of the outlets to develop themselves rapidly during the coming period, and to maximize confidence Consumer, compared to new online platforms.
Nagpal stressed the importance of expanding sales outlets in establishing electronic shopping platforms characterized by ease, smooth communication with dealers, and speedy delivery of goods, provided that it includes all goods, including food, with an increase in real discounts and offers of innovative products and services that the platforms cannot compete with.
The expansion of online platforms increases competitiveness and provides more diverse alternatives to consumers.
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