Retailers in the Gulf will need to "reimagine their current strategies" if they are to remain relevant in an increasingly competitive market, with customers switching spending online and mall owners facing greater competition, according to a new report.
“The combination of the global pandemic, technology-driven advancements and supply-driven challenges can leave GCC retailers with great uncertainty in respect of their future positioning,” the paper from CBRE and Roland Berger said.
“Moving forward, retailers will have to reimagine their current strategies not only to keep them relevant in today’s retail sector, but also to anticipate the future of the industry and ensure long-term success," said Johannes Distler, a partner at Roland Berger.
Prior to the outbreak of the pandemic, the retail sector in the GCC showed strong growth, with fashion and beauty sales in the region projected to grow by $6 billion (Dh22bn) between 2020 and 2023, reaching a market size of $16bn in 2023. However, the sector is also facing challenges due to the high density levels of retail space and the growth in e-commerce.
The Covid-19 pandemic is the greatest challenge facing the world economy, which has slid into a recession that is expected to be the worst since the Great Depression, according to the International Monetary Fund.
A number of retail giants across the world are reporting losses in the wake of movement restrictions imposed by the governments to contain the spread of the virus. Famous brands have also been forced to file for bankruptcy in the US including Brooks Brothers, JC Penney, J Crew, Neiman Marcus, Muji USA, Luck Brand, nutritional supplement seller GNC and others.
The outbreak has led to “a widespread spending freeze and dramatic changes in consumer behaviour”, according to the report.
This included a rapid shift to online retail, meaning retailers need to embrace technology and integrate artificial intelligence into their operations, it argued.
The pandemic also means new trends including contactless check-out being expedited across the GCC due to social distancing measures.
“The region may not yet be ready for 'Just Walk Out' technology [pioneered by Amazon stores in the US] but it is beginning to see an uptake in RFID [Radio frequency identification] tags, eg. in Zara Dubai Mall. In a post-Covid-19 world where social distancing may become the norm for the near-term future, we expect to see further uptake of this technology," the report said.
Another challenge will be in making sure they choose successful sites as the amount of space on offer increases. Dubai and Abu Dhabi already have among the highest density rates of retail space per capita in the world.
As of the end of 2019, total organised retail stock in Dubai was estimated at almost 5 million sq m of Gross Leasable Area (GLA), up 11 per cent from the previous year. The city’s retail area is expected to increase by almost 40 per cent to 6.9 million sq m by 2023.
In Abu Dhabi, the growth in retail supply has softened over the past 5 years, averaging 1.8 per cent growth over the period 2015 – 2019. In 2019, the city registered a total of 2.8 million sq m of GLA and retail space is expected to grow 28 per cent by 2023.
Riyadh’s retail market is also expected to witness considerable supply growth, equating to 600,000 sq m of GLA, or an increase of 20 per cent of existing retail stock, to 3.5 million sq m by 2023.
“Regional malls are expected to form a major portion of new supply, representing an impressive 70 per cent of the total quality retail supply under construction. These large deliveries are likely to place downward pressure on overall performance levels," the report said.
"However, with the focus currently placed on large-scale retail malls, smaller neighbourhood and community developments are likely to be well-received, as they cater to more niche markets and captive populations seeking convenience and daily retail solutions.”
SUZUME
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The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
* Agence France Presse
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
The%20specs
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MATCH INFO
Manchester City 1 (Gundogan 56')
Shakhtar Donetsk 1 (Solomon 69')
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Zayed Sustainability Prize
Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
SPECS
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Fast%20X
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World%20Cup%202023%20ticket%20sales
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
