RETAIL PEOPLE MAGAZINE ISSUE 31 - THE EVOLVING FACE OF CUSTOMER EXPERIENCE by MECS+R (MECSC) Publications

The Evolving Face of Customer Experience Featuring:

Renata Liuzzi Founder & CEO - Axis Partners “Whilst there are many factors for retail success, the most important is to understand your customers and then create products and services that are aligned to their needs and behaviors.”

P12

SOUQ7

An Exciting Experience Underway

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SAHARA CENTRE

Celebrates 20 Years of Contemporary Shopping Experience

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What Does the Fintech Revolution mean for Shopping Mall Gift Cards?

CONTENTS CONTENT

CONTENTS

Featured Cover Story: Renata Liuzzi

04 WELCOME REMARKS

ON THE COVER 06 The Evolving Face of Customer Experience

Featuring: Renata Liuzzi The CEO & Founder of Axis Partners

SHOPPING CENTRE UPDATE 12 SOUQ7 An Exciting Experience is Underway 14 SAHARA CENTRE Celebrates 20 Years of a Contemporary Shopping Experience

SPECIAL FEATURE 18 What Can the Metaverse Do for Retail? FEATURED ARTICLES 21 Bridging Worlds: Ensuring Seamless Digital Integration for Optimal Customer Experience

23 What Does the Fintech Revolution Mean for

Qatar

42 Qatar: On Upward Growth Curve 44 The Future of Fashion Buying 46 Retail in Qatar Leaps Forward United Arab Emirates 48 The Mixed-Use Community Living 50 Retail Leasing in Mixed-Use Developments 52 The Evolution of Mixed-Use Developments to Promote Experience and Connection

NEWS BRIEF

Shopping Mall Gift Cards?

24 How Shopping Malls Can Improve Sales Through Marketing

REGIONAL ROUND-UP Christian Baldonanza Digital Media & Innovation Manager

connect@mecsc.org

Justin Espiritu

Relationship and Business Development Manager publishing@mecsc.org

Bahrain 28 Top Retail Trends in the Middle East Region Egypt 30 The Future of Retail Market in Egypt 32 A Local Appetite for International Luxury Retail

Iran 34 The Ups and Downs But Growing Path of PUBLISHED BY: https://www.mecsc.org/site/publications/RPM

WE WANT TO HEAR FROM YOU! If you would like to contribute an article, place an advertisement for our 2022 issue or share your comments, suggestions or ideas, contact customercare@mecsc.org

E-Commerce In Iran

Kingdom of Saudi Arabia 36 Retail Tourism in the Kingdom of Saudi

Arabia: The Past, The Present & The Future

Oman

54 Al Hokair Group Selected As Exclusive Agent for Brass Monkey in KSA

Majid Al Futtaim Launches Hybrid Digital Food Hall Concept

55 Pickl is the First UAE Restaurant to Enter the Metaverse

Dubai Reveals Plan to Create Futuristic City in Metaverse

56 Damac Group Eyes Move Into the Metaverse with $100 Million Investment in “Digital Cities” Led by Ali Sajwani

WHAT’S NEW? 57 Oman’s First Ikea Store to Open on This Date

LuLu Hypermarket Joins Talabat Spinneys Opens a New Store in Nasr City Macy’s to open $584M Fulfillment Center

38 Oman Retail Industry -

Uniqlo to Ramp Up Store Expansion in North America

40 Post Pandemic Observations

Home Depot Launches Venture Capital Fund

Market Insights and Growth Forecasts

Disclaimer: The viewpoints, articles and opinions contained in the Retail People Magazine are not necessarily those of MECS+R. RETAIL PEOPLE . MAY - JUL 2022 .3

WELCOME

The Evolving Face of Customer Experience Featuring:

P12

SOUQ7

An Exciting Experience Underway

P14

SAHARA CENTRE

Celebrates 20 Years of Contemporary Shopping Experience

P23

“In a world where products and services are becoming more and more commoditized, customer experience is the only true differentiator.” – Annette Franz

What Does the Fintech Revolution mean for Shopping Mall Gift Cards?

One of the secrets of great companies that remain tenacious and immovable beyond their competitors is how they deal with their customers and clients. With the rising of new brands, new services and even technologies, customer experience is one of the core pillars of customer retention. A business will not grow if your customers don’t stick around. A satisfied customer who experiences a great service will be your support arm in marketing your products and services. After all, word of mouth remains true and the best tool in every business.

ON THE COVER RENATA LIUZZI

CEO & Founder Axis Partners

YOUNUS AL MULLA MECS+R Chairman Dubai, UAE

ENG. WAIL M. BALKHAIR MECS+R Board President Saudi Arabia

KAMEL SHABAN

CEO, SOLO MECS+R Board Vice President

JUBY JOSE

Head of Marketing & Specialty Leasing DALMA MALL MECS+R Board Treasurer

ALESSANDRO GAFFURI CEO & Founder CELS Group MECS+R Board Member

DUAIJ AL RUMAIHI

Mall Director, Bahrain Shopping Malls City Centre Bahrain MECS+R Board Member

GOGI GEORGE

GM - Development & Leasing Lulu Group International - Oman MECS+R Board Member

As we release our 2nd quarter edition of our Retail People Magazine, we are very thrilled to have the global business transformation strategist, Renata Liuzzi, Founder & CEO of Axis Partners, as our featured cover with its theme “The Evolving Face of Customer Experience.” As a customer experience and innovation expert, Renata shared her views on the current consumer retail outlook as well as what will be the impact of the introduction of Web3, Metaverse and NFTs as we approach the future of retail. As we all know, retail keeps evolving and changing. Thus, we need to know the keys to success to remain resilient, strong, and future proof in the retail environment. Once again, we would like to thank all our members who continuously support and contribute articles for the magazine. Indeed, this edition is filled with fresh, new, and exciting articles along with the latest news that will give you more insights and information on what is happening in the retail industry in the region. Special thanks to our Board Members, Regional Representatives and renowned industry experts who are members of MECS+R that took the time to deliver an update on the current industry scenario in their region. Of course, we would like to thank all our sponsors/advertisers who continue to believe in us and support us from the beginning. We are truly grateful to you. Moreover, the team at the MECS+R is looking forward to our first in-person event on June 20-23 which will focus on the shopping centre management curriculum. We are opening our doors to welcoming our students at the Gregory Vogt School for Retail Real Estate Professionals. We are committed to shaping and harnessing individuals to learn new concepts and network with like-minded people who are driven to increase the company’s value and success. We invite you and your team to be part of our live, in-person training that will equip you to succeed in the ever-changing retail environment. Reach out to the MECS+R team who is always ready to support and assist you. Lastly, our Retail Congress MENA, ‘REBORN’, will be happening on December 5-6, 2022 at the Ritz Carlton DIFC Hotel, Dubai, UAE. We would like to thank and recognize our early sponsors and exhibitors namely, Arabian Centres, Yardi, Souq7, OPM, The Clock Towers and Vemco Group. This immersive event experience will serve as an incubator for innovation and engage with industry executives, leaders and visionaries in the shopping centre and retail industry. Come, join us, be a sponsor or exhibitor and book your booth now! We hope you enjoy reading this issue as much as the team at MECS+R has enjoyed bringing it to you.

MOHAMMED AL QAED

Manager, Property Management SEEF Properties MECS+R Board Member

SAMAR AKKOU

Senior Manager - Leasing Nakheel Malls MECS+R Board Member

DAVID MACADAM

Chief Executive Officer MECS+R

RETAIL PEOPLE . MAY - JUL 2022

Eng. Wail M. Balkhair Board President MECS+R

EMBRACE A DELIGHTFUL SHOPPING EXPERIENCE ROOTED IN A RICH HERITAGE the highly anticipated mega development aiming to re-imagine the city residents’ shopping experience, is making great strides forward. The seven zones that make up this epic commercial and cultural hub are nearing completion by the day as Azad Properties makes progress in delivering this new landmark to Jeddah. With attention to creating a masterful architectural icon, and a solid infrastructure, Azad is already rolling out phases of Souq7. And with every passing day, this ambitious project, merging the heritage of Saudi bazaars with the amenities of modern shopping experiences, is coming to life as scheduled.

Great potential for retailers is already a reality As scheduled, phase one of the remarkable Souq7 will soon be opened for the public to enjoy. Two of the seven zones will be showcasing a rich shopping experience very soon; these zones are the Home and Furniture Zone, and the Electronics Zone. The Home and Furniture Zone hosts an array of retailers offering countless choices for home and workplace needs in one place. On the other hand, the Electronics Zone offers shoppers everything from basic electric appliances to the latest smart gadgets. Thanks to the keen interest of partners, investment in both zones under phase one reached 100% before the upcoming inauguration date.

One step closer towards Jeddah’s shopping future In parallel with the completion of phase one, the developers of Souq7 initiated the excavation and construction work for the second phase of the project. All interested retailers can now begin selecting the areas they want to rent and develop to become part of the Souq7 shopping experience.

A wholesome experience will soon unfold Souq7 promises to deliver a unique experience of shopping, entertainment, services, and boundless opportunities for Jeddah’s merchants and residents alike. This one-of-a-kind project will comprehensively cater to the needs of visitors in a delightful setting that celebrates Jeddah’s rich heritage. Souq7 is comprised of the following seven zones: FOODS STUFF ZONE FAMILY AND ENTERTAINMENT ZONE A 3-IN-1 AREA SUBDIVIDED INTO: Traditional Market Zone, Entertainment Zone, and Fashion Zone MULTI-USE ZONE HOME AND FURNITURE ZONE ELECTRONICS ZONE BUILDING MATERIALS ZONE AUTOMOTIVE ZONE The total developed area of the project is

728,000 sqm

Developer Azad Properties is developing the unique project of Souq7 taking into consideration the various needs of the developers and retailers. Azad offers the following partnership options in the Souq7 project: • Development of lands • Building according to the client’s demand • Renting retail shops

Let’s Talk Souq 92 00 22 575 +966 55 402 6677 +966 50 690 6777

souq7.sa

souq7@azadre.com

souq7

Souq7Azad

THE EVOLVING FACE OF

CUSTOMER EXPERIENCE

As customer experience (CX) moves beyond satisfaction towards community creation and engagement, Retail People Magazine speaks to global business transformation strategist, Renata Liuzzi, Founder of Axis Partners, on the future of CX.

ustomer Experience has become the leitmotif for the retail industry. While more and more brands are seeking to enhance their CX; rapidly evolving customer needs are making the terrain tough to navigate. In response to rapidly emerging and accelerating CX challenges, Renata identified the opportunity to provide critical insights, support and strategy for businesses to remain relevant and sustainable. In 2019, when Renata founded Axis Partners, little did she realise the significance of her vision in light of the global events which occurred in early 2020. Awarded the second most influential CX/Innovation practitioner worldwide by the CX Magazine in 2022 and one of the top CX/innovation thought-leaders in 2021; Renata is engaged as a strategic CX and innovation advisor to investment, retail and real estate groups. She has worked with conglomerates like Emaar, Dubai Properties and Meraas, leading and curating their retail, real estate and even hospitality experiences.

RETAIL PEOPLE . MAY - JUL 2022

Here, she highlights how brands can make customer interactions more meaningful, profitable and more importantly, human.

As a Customer Experience and Innovation expert, how do you see the current consumer retail outlook? With the Edelman Trust Barometer 2021 revealing that 88% of consumers across 14 global markets believe that trust is critical, CX is no longer a nice-to-have, it is a must-have. Delivering on the customer promise is the key differentiator for a brand’s success. It is no coincidence that the most resilient and successful firms list ‘enriching the lives of their customers’ as their highest purpose. More and more brands are realising that financial growth and

maximising shareholder value come as a direct consequence of CX - and not the other way around. CX must be embedded in the DNA and culture of the company. Equally important is the brands’ ability to execute. Proper company governance, including closed-loop, follow up processes, rootcause diagnosis and test-and-learn systems are essential ingredients in delivering best practice CX. Retail transactions have evolved beyond the simple exchange of goods and services for money. A shopper’s ‘currency’ is no longer just money. Customers now consider the amount of time, their level of engagement, trust and loyalty as a transaction. Consumers are now looking at the brand’s values, its leadership team and what it stands for, more closely than ever before.

This is not the end of brick-and-mortar. It’s about an omnichannel experience.

With huge leaps being made in the digital world (Metaverse, NFTs and so on), customers are evolving from passively consuming, to being creative agents that curate their own unique virtual identity. Retailers can no longer deal only in products - exchange of goods is passé; they must provide experiences whilst creating platforms for customers to express themselves. The fibres of the “holy trinity” of retail: product, experience and platforms, must be truly embedded within an organisation – top-down and bottom-up. This is not easy to achieve. At Axis Partners we help brands acquire a truly customer-centric mindset through clear strategies coupled with impeccable execution. As CX and Innovation Advisors, we work towards creating ‘excellence communities’ that drive organic customer-centric innovation and CX transformation. Axis not only designs CX for brands, but also runs it and makes sure it is an integral part of the DNA and the brand’s operations.

What do you think are the keys to success in retail in the future? Jeff Bezos, Founder of Amazon, said, “We’re not competitor obsessed, we’re customerobsessed. We start with what the customer needs and we work backwards.” This is a quote I always work by and exhort brands to work by as well. If Amazon focused on their competitors, they wouldn’t be where they are. The reason Amazon evolved so fast is that it cracked the CX code. While there are many factors for retail success, the most important is to understand your customers and then create products and services that are aligned to their needs and behaviours. Customer behaviour is changing constantly; so brands have to remain agile and nimble in order to constantly adapt their offering. Additionally, a sense of “belonging” is becoming important to customers. Brands have no choice but to look at ways to engage customers in participation-driven communities, where they can co-create their own items and be the protagonists of the products and services they consume. Sustainability is equally important. 88% of global consumers believe that companies and brands have a responsibility to take care of the planet and its people – this is a data point that must not be ignored.

Renata Liuzzi Founder & CEO Axis Partners

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This is not the end of brick-and-mortar, it’s about an omnichannel experience. Despite the acceleration of digital platforms, the demand for human connection remains strong and it is vital for a brand to have a meaningful human touch in every experience. Having the right people in the team will become even more crucial. Predictions indicate that brands will require game-changing skills such as complex problem solving, creativity, innovation, ideation, reasoning, analytical thinking and decision-making to stay ahead of the game.

Just as customers love to be able to move seamlessly from brick-and-mortar stores to online channels, a good metaverse CX will allow customers to move seamlessly between the brand’s business and other parts of the metaverse. Designing omnichannel customer journeys is more critical than ever. NFT-based marketplaces have emerged, formalizing the trend of a customer-centric culture united by a cryptobased community. The introduction of NFTs is enabling the shift from simple engagement to active participation

The Galleria Al Maryah Island - Building Communities

Once their vision is clearly established, well-defined KPIs will help brands measure progress towards their purpose, gauging evolution, and learning from both successes and mistakes. Axis Partners’ custom-made CX dashboards allow companies to set the stage for continuous improvement and innovation. And finally, brands should focus on training employees on developing a customer-centric mindset. I am a firm believer that brands need to embed higher elements of the “service” mentality within the team to ensure customers’ needs are at the epicentre of every interaction. Axis’ trainings are fun, engaging and practical, where everyone leaves with a clear understanding of CX as well as concrete strategies they can immediately execute.

With the introduction of Web3, the Metaverse and NFTs, how do you see the future of Retail? The metaverse is fundamentally shifting the control of brands into customers’ hands (customer-centric virtual economy). Thanks to blockchain technology, customers will be active participants in company decisions, one example of this is voting for a new product launch. This is a great opportunity for brands to de-risk their businesses as they are effectively co-creating with customers and reducing the trial-and-error cycle, which can be expensive and timeconsuming.

RETAIL PEOPLE . MAY - JUL 2022

A purpose

definition is the first and

most critical step for a customer-centric

culture.

for customers. Through NFTs, customers will be able to hold smart contracts and even own a stake in the company – which has the potential to become a game-changer in customer engagement. With blockchain, it is more possible than ever before to open product and services design to a wider community. This gives even more control to customers and less power to unilaterally operated brands.

What is your advice in such a fast-changing retail environment? The key to managing uncertainty is to stay close to your customers. Companies that have been successful through the pandemic are the ones that have known how to understand and quickly respond to customer needs. Many companies say that they are customercentric, but less than 10% of businesses truly work on training their people, creating customer-centric SOPs, designing customer journeys, and creating a purposeful CX strategy that can drive dayto-day actions that have a tangible impact on their customers. CX is not a one department job, it’s a full-fledged organisational effort that requires strong involvement from the leadership – this is how it becomes the DNA.

PROCESS: It is critical to have thoroughly defined processes with a clear delegation of authority that empowers frontline employees to make decisions favouring the customer. Employees should be well trained on what they can and cannot do to serve customers. For example, the Ritz Carlton Hotel allows employees facing customers to provide rewards of up to $500, allowing them to do service recovery on the spot, without any bureaucracy or red tape. TECHNOLOGY: Having the right technology is vital to delivering seamless omnichannel experiences. AIpowered CRM, business intelligence systems, and voice of the customer tools, amongst others, allow brands to deliver experiences that blur boundaries between the physical and digital world.

The Galleria Al Maryah Island - Human Connection

Companies have to move away from only focusing on customer data. They will have to bring CX to life by making it real, in every interaction, at every touchpoint. Additionally, top management must recognize that the primary metrics must be customer-focused and not based on short-term financial returns.

How can brands build a foolproof CX ecosystem? CX in retail is all about forging real, meaningful connections with people: the creation of a community. Customers are loyal to a brand if they feel they are building a true and honest bilateral relationship. A purpose definition is the first and most critical step for a customer-centric culture. This defines why and how the brand aims to serve customers and add value to their lives. To enable that purpose, there are three elements for a foolproof CX model: people, process and technology.

PEOPLE: The focus always must be on people, whether

employees or customers. Remember that happy employees equate to happy customers. People work hard for a pay-cheque, they work harder for a good manager but they work hardest for a meaningful purpose. Companies must motivate their workforce to believe they are working towards a greater purpose. Employees must be empowered and feel a sense of belonging - only then can they truly care about customers. If your team feels like a family, your customers will feel part of that too. Photos of Renata by Stela McMillan - Instagram: @stela.mcmillan.ph RETAIL PEOPLE . MAY - JUL 2022 .9

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RIYADH

JEDDAH

EASTERN PROVINCE

MAKKAH

Al Nakheel Mall

Jeddah Park

Mall of Dhahran

Makkah Mall

Al Hamra Mall

Al Salaam Mall

Nakheel Mall (Dammam)

MADINAH

U Walk

Mall of Arabia

Al Jubail Mall

Al Noor Mall

Salaam Mall

Aziz Mall

Al Ahsa Mall (Hofuf)

Tala Mall

Al Yasmin Mall

�e View

Haifaa Mall

QASSIM Nakheel Plaza

TAIF Jouri Mall

SHOPPING CENTRE UPDATE

An Exciting Experience is Underway “An Exciting Experience is Underway” Souq7 will be the entertainment and shopping destination of choice for many customers as it integrates the heritage, culture and traditions that characterize Saudi bazaars and markets, with a modern infrastructure that provides contemporary amenities for both tenants and shoppers.

ouq7 is the future comprehensive shopping and retail destination, located in the heart of Jeddah. “Souq7”, developed by “Azad Properties”, is eagerly anticipated by Jeddah’s residents and visitors. The city of Jeddah is awaiting the opening of the largest market that showcases a contemporary concept for traditional shopping. The project combines the best aspects of Saudi bazaars and traditional markets to enhance the concept of shopping and entertainment in Jeddah and work to raise the quality of life in the city.

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Work continues around the clock on developing Souq7 to be one of the most important shopping destinations in Jeddah, as it is a complex that encompasses all the latest in shopping and lifestyle destinations.

“An Ambitious Development” The Souq7 project focuses on providing ways to accelerate the pace of economic development for the city of Jeddah, creating job opportunities, in addition to providing attractive opportunities for developers, retailers and investors. The strategic plan of Souq7 provides a comprehensive framework that redraws the surrounding area in the province of Jeddah

Ayman Al Burti CEO AZAD PROPERTIES

and enhances the renovation initiatives taking place in the neighbouring sites to raise their efficiency and help in overcoming all unexpected challenges in the best manner.

“The 7 is there for a reason” Souq7 is divided into seven zones, providing seven main themes, and each zone has a unique character that reflects a special shopping experience. Souq7 visitors will find a wide range of retail stores and services that meet the daily needs of the residents of Jeddah and its suburbs. The 7 zones are: Foods Stuff Zone, Family and Entertainment Zone (which includes Traditional Market Zone, Entertainment Zone, and Fashion Zone), Multi-Use Zone, Furniture and Home Supplies Zone, Electronics Zone, Building Materials Zone, and Automotive Zone.

“Promising Facts & Figures” With an impressive strategic location and a rental area of more than 400,000 square meters, Souq7 is set to become one of the largest retail complexes in the Makkah region. 80% of the first phase has been completed, and construction work for the second phase of the project has been handed over to one of the well-known contracting companies – under

the umbrella of Azad Properties. This contract was signed to start the construction operations for the second phase of Souq7, which covers a building area of more than 100,000 square meters for 53 buildings, including two mosques and public facilities. The ambition is to complete work on this phase within the next twelve months. More than 60% of the commercial spaces have been rented, which include spaces in the furniture, home, automotive, and the traditional market zones. The doors of leasing have been opened to welcome entrepreneurs wishing to choose from 354 available showrooms in the fashion zone. It is worth noting that the first phase, which includes the furniture and home zone and the electronics zone, will be opened in 2022.

“What Souq7 is About” The project aims to spread joy, advance popular shopping concepts, offer promising opportunities, businesses, jobs, and benefits to revive and diversify entertainment choices, improve the quality of life, and contribute to the betterment of our beloved country.

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SHOPPING CENTRE UPDATE

ahara Centre, the ultimate lifestyle destination in the UAE, celebrated its 20 years of exceptional shopping, leisure, culinary excellence, and togetherness. Since its inauguration on 20th February 2002 with 200 stores that included internationally renowned brands and many recreational facilities, the mall has been a favourite for shopping, dining and entertainment enthusiasts. It was a distinctive addition to Sharjah’s landmarks, with its unique architectural design and local character. Today, Sahara Centre is bigger and better than ever before. “Customer satisfaction has always been our primary pillar at Sahara Centre, and 20 years on, we are still incredibly proud to be offering the best of shopping, dining, and entertainment options, all under one roof”, says Akram Ammar, Managing Director of Sahara Centre. “We have spared no effort to provide an ideal shopping experience and are currently developing our

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fourth phase of the Sahara City project, which is designed to make Sahara an integrated city offering recreational, commercial, healthcare, and residential facilities to meet the needs of our contemporary society,” he added. Following the remarkable turnout that Sahara Centre has witnessed over the past few years, and in response to the aspirations of its visitors, the centre’s eastern expansion project was launched in 2013, bringing the total number of stores to 375 and its total area to around 185,000 square metres. This expansion further strengthened the centre’s position as a modern shopping and leisure destination with attractive amenities and spacious areas. Eight years later, Sahara Centre embarked on another ambitious expansion at the West end in 2021, introducing a diverse retail mix across categories and dining options, bringing the total number

of stores to 545 and the area to 275,000 square metres. Visitors can now enjoy exceptional shopping and dining within outdoor spaces as well as access to Sahara Healthcare City, a premium health and wellness hub located atop the mall, spread across five floors with more than 5,000 parking spaces and contemporary amenities within its reach. The expansion will also hosts four premium residential towers atop the mall’s eastern side, further empowering the Sahara City journey. With the completion of the western expansion, Sahara Centre reaffirmed its position as one of the most prominent shopping destinations in Sharjah and the Northern Emirates. Today, 20 years after its initial launch, Sahara Centre remains one of the most desired destinations for both residents and tourists in the region through its innovative ways of engaging with customers and catering to their diverse needs, all under one roof. Ammar concluded, “We are deeply grateful to our valued customers for helping us celebrate Sahara Centre’s 20th anniversary. We are reflecting our gratitude through daily prizes, gift vouchers, joyous parades, and exceptional activations and look forward to providing a new lifestyle experience for everyone for many more years to come.”

“Customer satisfaction has always been our primary pillar at Sahara Centre, and 20 years on, we are still incredibly proud to be offering the best of shopping, dining, and entertainment options, all under one roof.” - Akram Ammar

Managing Director SAHARA CENTRE

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As Safiyyah Museum & Park – Al Madinah

Hira Coltuval District - Makkah

Kingdom of Saudi Arabia Makkah - Al Madinah

Jabal Thawr Coltuval - Makkah

Spend AED 200 at Sahara Centre and you could win 1 of 2 Toyota Land Cruisers or AED 100,000 in furniture and fashion vouchers between now and August 12th. Don’t miss your chance to win at Sahara Centre, where your Ultimate Shopping Adventure Begins.

* Terms and conditions apply

FEATURED SPECIAL FEATURE MEMBER

What Can the Metaverse Do for Retail? Jack Stratten is Senior Trends Consultant at retail futures consultancy Insider Trends. Continuously monitoring best practices in global retail, Jack has delivered trend tours, presentations and workshops to many of the world’s biggest brands and retailers, helping them to solve complex challenges and navigate the future of retail.

he metaverse – broadly speaking a 3D version of the internet that exists parallel to the real world – is one hot topic.

But it is not just some future concept. Many of the world’s biggest brands are already engaging with the metaverse, through NFTs (non-fungible tokens), virtual stores and digital items for avatars. These immersive concepts are not just an opportunity to increase brand awareness and create memorable customer experiences. They are also an opportunity to sell.

The Way into the Metaverse One thing we are seeing in the current wave of brand experimentation is that there is not just one way to enter the metaverse. While certain retailers have opted to create digital versions of their existing stores, sportswear giant Nike has chosen to create an entire virtual world. Built with the gaming platform Roblox, Nikeland uses Nike’s real-life headquarters as its design inspiration. Instead of walking around a store, visitors explore fields and arenas to take part in mini-games and design their own.

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JACK STRATTEN

Senior Trends Consultant Insider Trends A digital showroom allows users to buy digital versions of classic and new Nike products to dress their avatar in. This means Nike can use the space as a testing ground to gauge consumer interest in new designs. In an interesting twist, Nike recently bought the virtual Nikeland to its physical House of Innovation store in NYC via augmented reality (AR). Meanwhile, Adidas, another sportswear leader, has chosen non-fungible tokens (NFTs) as its vehicle into the metaverse. It partnered with Bored Ape Yacht Club, gmoney and PUNKS Comic to develop collectible NFTs.

As such, the NFTs function as digital loyalty cards offering VIP access to Adidas’ biggest fans. Plus, they also give the owners exclusive physical merchandise at no extra cost.

These provide their owners with access to upcoming digital experiences and virtual wearables. They will also function as the access tokens to Adiverse, a virtual world Adidas is building in Sandbox, which will offer exclusive experiences and virtual merch. As such, the NFTs function as digital loyalty cards offering VIP access to Adidas’ biggest fans. Plus, they also give the owners exclusive physical merchandise at no extra cost.

New Opportunities for Brand Expression One of the most exciting things about the metaverse is the potential for retailers to be bolder in their brand expression. Another brand that is taking its first steps into the metaverse with Roblox is Vans.

The Metaverse and the Physical World Although the metaverse may seem like it supersedes the physical world, we are seeing some interesting combinations of the two. Last year London concept store Machine-A launched an AR store to highlight the work of independent designers. Working with the Institute of Digital Fashion and taking place during London Fashion Week, the virtual sales floor could be accessed by scanning a QR code.

Vans World is a massive virtual skate park. Users can dress their avatar and customise their skateboard before completing skateboard tricks and taking part in daily challenges.

What was interesting is that the QR code was embedded in fly-posters and billboards across London, showing that tech enables the door to a store to be placed anywhere. As such, the metaverse could push retail into entirely new physical environments.

With the Vans brand so closely tied to skate culture, it is a glimpse into how brands can express themselves in new, yet entirely authentic, ways.

Meanwhile, the virtual Harajuku created by the ward of Shibuya in Tokyo, Japan, shows how entire physical shopping areas can move into the metaverse.

Even brands whose products require senses that do not easily translate to digital, such as smell and taste, are exploring the possibilities of the metaverse.

Shoppers can walk around the virtual streets of Harajuku via an avatar, experience live performances and visit fully shoppable retail spaces.

For example, Coca-Cola is launching a digital version of its new Diet Coke flavour before the physical one hits store shelves.

In this case though, they are not only buying digital products. Purchases they make virtually can be delivered to them as physical products in the real world.

It has partnered with PWR, a gaming organisation, to build a custom island within the Fortnite video game. Visitors to Pixel Point can try out Coke-themed mini-games, and virtually ‘taste’ Coca-Cola Zero Sugar Byte.

These concepts are just the tip of the iceberg of what is possible. Perhaps the biggest thing the metaverse can do for retail is to shake up what retail actually is.

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THE WAREHOUSE: KUWAIT’S FIRST PREMIUM URBAN SHOPPING DESTINATION

The Warehouse Kuwait

The Warehouse Kuwait - The Dinning Hub

The Warehouse Kuwait - The Main Hub

WHEN URBAN STREETSCAPES MEET AN OUTSTANDING OFFERING Project Area

: 106,000 m2

GLA

: 75,000 m2

Retail Stores

: 180 stores

Cinema Screens

: 7 screens

Parking

: 2,500 spaces

To ensure your brand is in the right location: Email: Leasing@tamdeen.com Telephone: +965 6551 9579

The Warehouse will be Kuwait’s first premium urban shopping destination. The 106,000 m2 project will offer shoppers over 180 retail stores including a 7-screen cinema with approximately 2500 car parking spaces. Located strategically between King Fahad Bin Abdulaziz Highway and Fahaheel expressway in South Sabahiya, Ahmadi Governate, the Warehouse Kuwait enjoys high visibility and easy access, making it convenient for shoppers from across Kuwait to visit. The mall has been designed to present retail, F&B and entertainment in an industrial and urban setting that is inspired by rustic warehouses. Exposed structures, play of concrete and brick walls, metal girders, double and triple height mall ways with skylights create an indoor streetscape atmosphere with light and shadows elevating the mood and creating a unique shopping experience. The Warehouse Kuwait will present customers with a curated mix of home, retail, entertainment, dining and a unique pet offering in a modern contemporary setting, making it an ideal shopping destination and social meeting point.

FEATURE

FEATURED MEMBER

Bridging Worlds: Ensuring Seamless Digital Integration for Optimal Customer Experience Meshaal Bin Omairh joined Abdullah Al Othaim Investment Co. in 2021 as Group CEO. His status as the first non-member of the eminent Al Othaim family to lead the company reflects his extensive 25-year experience of corporate governance, organizational development, and capital optimization. He has led multinational companies and worked with some of the largest companies operating in KSA including Rajhi Steel and Aljazierah Home Appliances.

ith one of the youngest populations in the world, Saudi Arabia’s retail consumers are seeking out and utilizing emerging technologies at an increasingly fast pace, and the seamless integration of the digital world into physical retail locations has been brought to the frontline. Beyond providing vibrant and exciting experiences for these digitally native shoppers, this integration can completely transform how customers approach and perceive brick-and-mortar businesses.

The Best of Both Virtual stores offer consumers a highly unique and engaging shopping experience: during which over 70% of consumers make a purchase. Seamless digital integration embraces the immersion of virtual shopping platforms whilst capitalizing on the unique practicality of physical stores. This trend has established itself as the prime focus for a number of forward-looking retail companies in Saudi Arabia. As highlighted by Meshaal Bin Omairh, Group CEO of Abdullah Al Othaim Investment Co., there is a growing importance of “evolving retail offerings to the ever-growing dynamism of the Kingdom’s digitally native youth”. The main challenge for retailers across the Middle East lies in relaying the interactivity and engagement of virtual spaces to physical locations. In fully digitally integrated stores, shoppers can benefit from innovative digital technologies whilst also enjoying the in-store guidance of a friendly salesperson. The cherry on the cake is that retailers stimulate more online engagement in locations where they have a physical presence, showing the symbiotic relationship between the online and physical worlds.

MESHAAL BIN OMAIRH

GROUP CEO ABDULLAH AL OTHAIM INVESTMENT CO.

Ensuring Seamless Digital Integration Across all customer offerings which integrate cuttingedge technologies, retail companies aim to ensure seamless online-offline experiences and to immerse customers completely. With that in said, Bin Omairh maintains that “digital integration should not substitute or overshadow human encounters”. The successful implementation of new technologies depends on the willingness of consumers to try them, and retailers must always consider how best to entice customers and encourage them to use these technologies. A clear solution is to strategically implement technologies which enrich human-led customer service, allowing employees to deliver unique and personal experiences. Their rollout must include clear instructions and video demonstrations, as well as full device compatibility. The future of retail depends on fully integrated onlineoffline experiences. Working towards this goal, retailers must be able to locate the micro-moments in which customers dip in and out of the digital world in order to provide the most engaging and immersive experience.

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FEATURE

FEATURED MEMBER

What Does the Fintech Revolution Mean for Shopping Mall Gift Cards? Colin Davidson is the Head of Region at Fintech Payment Solutions. He has been in the banking and payments sector for nearly 30 years, covering acquiring, issuing and cybersecurity. Over the past four years, Colin and his team have successfully launched and managed some of the largest gift card programmes in the Middle East.

he pandemic forced a change in behaviours – including how we interact with other people, businesses and the services they deliver. For retailers, this means an opportunity to not just re-open and start growing again but to innovate, improve the overall shopping experience and accelerate this growth. A metric for tracking people’s confidence in returning to the shops is the growth in gift cards – after all, you’d never give someone a gift unless you thought they’d be able to make good use of it! Globally, the gift card market is set to be worth US$424.21 billion in 2022 and is predicted to hit US$510 billion by 2025. But just what is driving this growth? Clearly, there is an inevitable “Post-Covid bounce” as shops re-open and the volumes of shoppers return. But there’s also innovation, and in particular technological innovation, creating new opportunities. In banking and payments, ‘fintech’ is transforming many of the traditional processes and experiences. For retailers, this fintech revolution is also transforming the gift card market around the world – an impact that is also beginning to be seen across the Middle East.

COLIN DAVIDSON

Head of Region Fintech Payment Solutions

The Fintech Future At its heart, Fintech have been focused on disrupting the status quo by delivering a better, more convenient user experience for end customers. This includes immediate access to all of their financial information and services anywhere through mobile apps accessible on an ordinary smartphone and being able to pay using the same device or even a watch or wearable. While start-ups were the first to offer many of these services, they are now mainstream with banks and payments companies of all sizes embracing similar solutions. Innovations like Apple Pay and Google Pay have also helped increase acceptance even further.

Shift to Contactless The shift away from cash to contactless payments has been a long-time coming. The past 12 months, however, have seen this trend reach an inflexion point, with acceptance of the ‘tap to pay’ approach becoming close to universal in markets around the world. While this transition was happening pre-Covid, the pandemic has undoubtedly accelerated the move, with contactless payments seen as safer by consumers and removing the hassle of cash handling and processing for retailers.

The Gift Card 2.0 For retailers and shopping centres, all of these changes mean one thing – reduced customer friction at checkouts, making it quicker and easier to pay. However, while spending behaviour has changed, many in the gift card sector have been left behind, not fully benefitting from these latest innovations and still relying on an earlier generation of products. By bringing this fintech approach into the gift card sector, it opens up a world of possibilities for retailers and mall brands that can help delight customers and increase revenues.

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FEATURED FEATURE MEMBER

How Shopping Malls Can Improve Sales Through Marketing Waleed Al-Toukhi is a dynamic and creative branding & marketing expert with more than 16 years of experience developing and executing business and marketing strategies. He has demonstrated the capability to scale marketing initiatives in line with growth objectives. Waleed gained an indepth understanding of marketing and communications strategies and he has a strong record of managing and motivating teams that achieve results.

n a retail landscape that becomes more challenging by the day, a good sales marketing plan is essential to entice more customers and retain tenants. This is also especially true for urban environments where a multitude of options, landscapes and entertainment prevails.

Waleed Al-Toukhi

This article will explore how shopping malls can increase traffic to their spaces. But before we explore the solutions, let’s look at the challenges that shopping malls face today and why a marketing plan is necessary.

malls no longer compete with high street stores or other shopping centres in large cities but with digital platforms that transform the user experience.

CHALLENGES OF MALL MARKETING Dynamic Market Shopping malls today have become centres designed to entertain and satisfy visitors. As a result, there is a significant shift in how people perceive a shopping mall. They want an experience that transcends from regular store shopping to something leisurely and fun.

Marketing Executive Director Abdullah Al Othaim Investment Co.

Now let’s explore how marketing can help shopping malls to attract and retain tenants and customers.

HOW A GOOD MARKETING STRATEGY CAN HELP SHOPPING MALL A sound marketing strategy is a sure ticket to increasing customer traffic in shopping malls. Below are some ideas and strategies to increase the footfall of your malls.

Today, the retail formats are dynamic and constantly being reinvented. Due to this unpredictability, nobody knows how long these spaces will stay active and where the sector is headed. A Rise in Online Shopping Trends We have recently observed a surge in online shopping, forcing shopping mall owners to explore increasing traffic to their stores. Investment funds and giant multinationals control shopping centres. Mall owners lease their premises to retailers and franchisees who operate their business in that space. However, with the rise in online shopping, more people stay at home rather than visit malls to buy the things they want. With low traffic, store owners are forced to assess whether their physical outlet is profitable. If their online store performs better than their retail store, they will eventually consider closing their mall store and concentrate on online sales. This is the main problem for mall owners who rely on retailers and franchisees to profit from their space. New Competitors As retail stores are threatened by online shopping, food delivery platforms and on-demand television series are also taking the limelight away from malls and bringing entertainment and food into homes with greater convenience. This means that shopping

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Attract shoppers by creating a prominent online presence. Use promotions, deals, and online advertising to increase sales. Collect contact details and target customers with personalized communications. Conduct giveaways and promotions for a new product launch or best brands. Share exclusive rewards for repeat customers to encourage more sales.

MARKETING STRATEGIES THAT WORK Shopping mall owners and managers can use various tips and tricks to engage retailers and customers to achieve the ultimate goal: higher sales. A good marketing strategy can help malls remain profitable while maintaining their competitive edge.

Here’s a run-down on marketing strategies that truly work. Social Media Presence You can use social media for advertising promotions, events, giveaways, etc. But, more importantly, with the right marketing strategy, you can create a brand that is identifiable and appealing. Social media apps such as Facebook and Instagram allow businesses to use creative marketing to build a persona and tone that suits their brand. Management can also use influencers and bloggers to promote the mall and its facilities. However, when devising a social media marketing strategy, keep the dynamic nature of digital media in mind because one strategy that works today might not be as effective tomorrow.

Boost Sales with Promotional Codes and Coupons Everyone loves a good deal; therefore, coupon deals never go out of fashion. Promotional codes work similarly by offering customers a good discount, encouraging them to buy more. When doing this, think about the various brands in your mall and remember your ultimate marketing goal. Determine which products or brands you want to promote. Do you like to offer a discount on a new product launch or new retail openings? Do you want to encourage holiday spending or reward customers for signing up for a newsletter?

Entertain and Engage Customers People come to the mall for its ambience and entertainment factor. If shopping was their only goal, they will stay home and order their favourite items online. Mall management can use these factors to attract, engage and entertain their customers.

FINAL THOUGHTS When running a shopping mall, you should realize the importance of both your tenants and customers. Promote their stores and make sure their business remains thriving. Create online buzz through usergenerated content and keep your customers connected. Moreover, you can host events and giveaways, offering customers unique experiences to foster customer loyalty. You should generate excitement whenever a new store is opening in your mall!

Through social media, a mall can increase its brand awareness and launch interactive and engaging promotions that online users would enjoy. Since customer preference has shifted towards easy-going and laid back marketing campaigns instead of hardselling ones, marketing strategies should be formed accordingly. You can organize a mini-game featuring your mall’s logo and branding colours. You can even include other brands in the mix to engage your customers and meet your promotion goals.

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in Retail we Rise thank you early Sponsors & Exhibitors

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organized by the largest retail & shopping centre associations in the region

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THE MIDDLE EAST AND NORTH AFRICA SHOPPING CENTRE AND RETAILER AWARDS

CALL FOR ENTRIES DEADLINE: 26 AUGUST 2022 The Middle East and North Africa Shopping Centre and Retailer Awards are designed to honour outstanding achievements in Retail, Marketing, NOI Enhancement, Design & Development of Retail Properties, Retail and Service Excellence. The Awards will be presented at the Retail Congress MENA 2022 on 6th December 2022 at the Ritz Carlton Hotel DIFC, Dubai, United Arab Emirates.

FOR ENTRIES IN THE TRADITIONAL MARKETING AND NOI ENHANCEMENT CATEGORIES The majority of the programmes must have been implemented between 1 August 2021 to 31 July 2022

FOR ENTRIES IN THE DESIGN AND DEVELOPMENT CATEGORIES Retail projects and stores opened within the period commencing 1 August 2021 to 31 July 2022

FOR ENTRIES IN THE RETAIL EXCELLENCE, RETAIL PROFESSIONAL OF THE YEAR, BEST MENA RETAIL BRAND Examples of performance and initiatives accomplished within the period commencing 1 August 2021 to 31 July 2022

FOR ENTRIES IN THE SERVICE EXCELLENCE Examples of performance and initiatives accomplished within the period commencing 1 August 2021 to 31 July 2022.

REGIONAL ROUND UP - BAHRAIN

Top Retail Trends in the

Middle East Region

Mr. Duaij Khalifa Al Rumaihi is the Mall Director for City Centre Bahrain, the leading shopping and lifestyle destination in the Kingdom of Bahrain. In this role, Duaij oversees the mall’s management team to ensure visitors have memorable experiences when visiting the mall and that strategic partnerships are established with retailers, contractors, third party suppliers, and local authorities.

rom the pandemic to supply chain bottlenecks, the retail industry has had its share of challenges in recent months. That is why digital transformation is more important than ever. Those retailers that build a secure, flexible, and app-centric network infrastructure are in position to adapt to the changes, whatever they may be. But retail today is not just about weathering challenges. It is about creating exciting new experiences for customers. Experiences that are seamless and fast whether in-store, at home, or on a mobile device. When we look back, the trends from offline to online retail were already visible. But the pandemic accelerated everything. We know that retail brands are ever-evolving, consumer preferences are shifting, and at City Centre Bahrain, we are adapting to the next wave of digital transformation. Fully in line with this trend, Majid Al Futtaim has a strong vision on the malls of the future.

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DUAIJ AL RUMAIHI Mall Director CITY CENTRE BAHRAIN MECS+R BOARD MEMBER

In the Middle East, online retail still accounts for a smaller share of the market, at an estimated 2-3% compared with 1015% in western economies. However, the demand for online retail is growing quickly. The Middle East is home to the youngest population in the world, with 60% of the region’s population aged under 30. With a high youth population and an interconnected region, the Middle East population spends the most time on social media networks. The Covid-19 pandemic has also transformed the way we live our lives, with users in Middle East reporting that they have been spending even more time on social media. Extensive lockdowns have led to changing consumer patterns and a shift to online channels for various activities such as shopping, learning, and socialising. We are seeing consumers focus on online shopping for their groceries, personal care products, and household supplies.

Majid Al Futtaim recently launched the Store of the Future in Mall of the Emirates in the UAE, a concept that allows customers to interact with the fully digital concept store, showcasing a futuristic shopping journey. This personalised experience offers a glimpse into how the retail industry in the region is shifting. Innovations like AI and machine learning can be implemented to benefit the retail sector in ways that increase efficiency and contain interconnected data. IDC researchers said that within two years, 40% of top retailers will use AI-enabled decisions to drive improvements in retail including customer lifetime value, productivity, and profitability.

In Bahrain, consumers have adapted to changing patterns during the pandemic, as various factors such as price, location and in-store convenience affect decisions. Consumers increasingly value local suppliers, supporting the local community and value brands that are more locally relevant. Retail brands need to show their commitment to the local community and align their supply chains to the growing trend of a desire for localness. At City Centre Bahrain, we ensure the brands we work with continue to maintain our customers’ interests. We also engage in community activities – our most recent one in Ramadan is an art competition with local schools. We told children to submit artwork under the theme of “What makes you smile?” during the holy month to encourage acts of kindness. We pride ourselves as an enabler of gathering the local community to create valuable memories and participate in important campaigns.

Omnichannel tools are creating more meaningful shopping experiences, and the importance of consistency across online shopping and the instore experience is very valuable to customers. Customer’s value same day delivery and in-store pickup, features that we have implemented during and post-pandemic. Sustainability will also be a major factor in retail within the coming years. Forrester researchers predict that between one-fifth and up to half of the online consumers ranked environmental responsibility among the top reasons for buying products. At City Centre Bahrain, we ensure that the brands we interact with are implementing sustainability values and are in line with Bahrain’s agenda to achieve netzero emissions by 2060. We are constantly looking for ways to enhance our customers’ experience, connect with the local community and support local talent. We are proud to be Bahrain’s destination for unique shopping experiences and to create valuable memories. In line with Bahrain’s digital transformation journey and with the available digital infrastructure, we are continuing on a pathway to modernise the retail sector and revive its growth.

As consumer patterns are constantly changing, we are closely monitoring the market to implement best practices and stay in line with regional trends. We launched our first Majid Al Futtaim self-digital redemption kiosks earlier this year, allowing customers to redeem their receipts and enter draws via tablets that have been installed within the mall instead of queuing at the physical redemption desks. We have also transformed our paper transactions into electronics, resulting in faster transactions. Entering a post-pandemic world, we envision a transformative retail sector in Bahrain and the region. We have witnessed a rise in mall visitors since 2022, due to the ease of COVID-19 restrictions and the opening of the King Fahd Causeway – an important source of mall visitors from neighbouring Saudi Arabia. We are confident that we will continue to adapt to changing patterns and maintain visitor levels pre-Covid. So, what does the future hold for the retail sector? Virtual experiences are increasingly becoming a priority for consumers they are getting more comfortable buying products virtually.

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REGIONAL ROUND UP FEATURE - EGYPT

THE FUTURE OF

RETAIL MARKET IN EGYPT Mohamed Galal is the Founder of TSM, a leading Egyptian Company in Mall Management and Retail Development operating in Egypt. Currently, Mohamed is the President & CEO of TSM Mall Management. He is an expert in managing commercial and mixed-use projects in Egypt and has taken the lead in establishing shopping malls in the secondary cities of Egypt. He is a renowned industry member and is contributing to several successful mall developments and retail launches.

gypt is a transcontinental country spanning the northeast corner of Africa and the southwest corner of Asia by a land bridge formed by the Sinai Peninsula. Cairo is the country’s capital and largest city. With over 100 million inhabitants, Egypt remains a sizeable market for retailers and fast-moving consumer goods manufacturers. This has sustained several large domestic producers and attracted global heavyweights to the market. The economic instability and the devaluation of the pound have brought new challenges and a need for the sector to adapt to remain competitive. Modern retail areas are nevertheless expanding, and customers are increasingly interested in interacting with retailers through new

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MOHAMED GALAL

President & CEO TSM Mall Management MECS+R Regional Representative - Egypt

technologies, bringing new opportunities for the sector to expand to cater to changing consumer trends. The heavy consumer habits of Egyptian consumers and the underserved commercial space offered in secondary cities are great motives for real estate developers and retailers to continue to expand. Despite COVID contraction all over the world, the impact in Egypt was less drastic. The Egyptian Government continued the road network development plan and succeeded in executing more than 1,000kms of highways, connecting flyovers, and intercity junctions, availing new prime retail space opportunities for rent for new local retailers and F&B operators.

Majid Al Futtaim Malls, City Stars, CFC, Marakez/Mall of Arabia and the likes are the preferred retail destinations in Egypt operated with international management standards and still record the highest visitors footfall and turnover. COVID and controlled access have remodelled retail habits and online became an add-on to physical shopping. Retail companies have also introduced the 360 shops online experience, keeping the clients hooked on the shop visit habits. Amazon, Noon, and OLX have announced the highest sales levels, and are exponentially increasing their warehousing space. Street Retail has picked up and in city gallerias are receiving increasing numbers of clients due to proximity and improved focused community services. The Egyptian market continues to be very attractive to all retail segments and for regional brands. Despite all the contraction in the retail world, new retail brands have entered the market recently and existing chains are expanding their operations in the cities of Egypt. The continued development of the East of Cairo and Cairo Capital City are becoming new hubs for F&B with more local and regional operators. Also, the Chill-Out chain and street retail hubs introduced by leading entities are shaping street retail and availing great opportunities for F&B and community services. They provide prime modern structured space in prime spots within city centres and the best residential areas which bring the street retail to a more organized profitable level.

innovating casual F&B hubs and parks to cater for the increasing demand by young Egyptian entrepreneurs aspiring to operate their new F&B endeavours in Dubai and KSA. Egypt’s retail and malls market is definitely becoming an extension of the UAE market and gaining a competitive edge. The increasing purchasing power and endless demand by young clients for innovation and high quality is shaping the market. Retail is becoming more interactive and clients are much more educated and demanding. Fintech and credit facilities extended to the retail industry are a great support. Locals’ products are also gaining competitive demand. Startups and new innovative concepts are upgrading the retail industry in Egypt similar to international markets. The increased prices of construction materials worldwide and the slowdown in the supply chain have also hit the Egyptian market. The development of the New Capital City with Dubailike skyscrapers and ultra-modern mixed-use projects is also shaping the new retail and commercial real estate market in Egypt. The recent balancing of the Egyptian currency will have implications yet to be reflected in the pricing and strategies of all businesses.

The F&B segment in Egypt has greatly evolved and regional Lebanese competitive casual dining operators have raised the standards. The local Egyptian F&B concepts are gaining ground. The local medium real estate developers are trying to benefit from this boom in local F&B operation and are

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REGIONAL ROUND UP FEATURE - EGYPT

A LOCAL APPETITE FOR

INTERNATIONAL LUXURY RETAIL The luxury consumption in Egypt is on the rise and private sector banks on the unlimited possibilities

HEBA ABDALLAH

Marketing pundit and a renowned figure in the retail industry, Heba Head of Marketing – Mall Management Abdallah is the Head of Marketing of Egypt’s leading entertainment Al Futtaim Group | Cairo Festival City Mall and shopping destination, Cairo Festival City Mall. Drawing on more than 22 years of extensive experience in Real Estate, Retail and Banking, out of which 14 years of them in the field with a strong portfolio of brands, Heba has been leading Cairo Festival City Mall’s marketing activities since 2019. She has made impactful transformations in the brand since joining and led numerous successful campaigns that revamped the retail industry in Egypt.

uxury retail in Egypt has been a thriving business, with a backlog of eager retailers looking to establish themselves in this new hub. Luxury retail has proven to be a true investment magnet on the local level while Egyptian consumers’ appetite for fashion brands has been on the rise. The implementation of the government’s strategy to revitalize the country’s economy and pursue a rejuvenated national identity has resulted in a large rise in inbound investment in Egypt’s luxury retail. The retail sector continues to be one of the most active, dynamic, lucrative, and promising industries to invest in, with annual retail sales exceeding EGP 523 bn in 2019, which is expected to grow to EGP 787 bn by 2023 as per recent reports. These figures are credited to the strong population and a growing and affluent middle and upper class.

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The private sector is playing an integral role in fueling the growth we are witnessing in retail and the food & beverage sectors, leveraging Egypt’s stance as a large consumer market which has been a key driver of this sector’s growth. In recent years, the label “luxury” has become much more prevalent and rigorously applied, and the Middle East now serves as a key distribution centre for high-end goods. Luxury Retail in Egypt is a new approach for the globe to achieve the dreamed-about goal of setting foot in the world’s most desirable locales. Egypt’s growth initiatives have been centred on utilizing Egypt’s strategic location, as well as its abundant natural resources and young population. While beginning modestly in Egypt through small artisanal handcrafted items, the advent of shopping malls in Egypt has

For the first time in Egypt, Festival Avenue will bring new luxury brands to Cairo Festival City Mall, truly bolstering shoppers’ experiences with a variety of products ranging from watches and jewellery to men, women & children’s fashion.

witnessed luxury retail becoming a prominent industry in the economy. Today, the industry is thriving while also serving as a popular tourist attraction. Regarded as a booming centre for retail businesses leveraging its massive population of over 100 million consumers, of which approximately 65.2% is within the age group of 15 – 35 years old, Egypt has been serving as a catalyst for retail growth in the region, that is why regional and international firms are continuing to spend more on this business. Driven by Al-Futtaim Group and its vision, Cairo Festival City Mall has become a landmark when it comes to retail in Egypt. The mall continues to pump sizable investments in the sector making it a substantial contributor to the industry. The retail and entertainment complex caters to families, groups of friends, and couples, as one of Cairo’s most popular shopping complexes at the “heart of Cairo Festival City.” Understanding the rise and demand for luxury retail, we insisted on letting CFC Mall be perceived as a home to international brands from a variety of countries, making it the country’s most exclusive shopping destination. For this purpose, and to serve the country’s growing appetite, Cairo Festival City Mall will open Festival Avenue; its new luxury extension to the existing mall. With this addition, CFC Mall’s ambitions will usher in a new era of shopping in the Middle East. With the launch of Festival Avenue, Cairo Festival City Mall will be playing an important role in laying the ground for the premium fashion industry. Festival Avenue will be a one-of-a-kind shopping experience for high-end apparel and accessories, the dream of any fashion guru, having everything in the same destination, from elegant clothes to fine dining, with a diverse range of international brands and designers. The extension of Cairo Festival City Mall is a EGP 2 billion investment project that will add 22,000 sqm of gross leasable area. This will span two retail floors, additional parking on two basements, a 5300-square-meter skylight and an outdoor amphitheatre. This additional GLA will bring CFC Mall to a 2 million sqm leasable area, which is the biggest in Egypt. I am thrilled to be working on such a project that will expand Cairo Festival City Mall’s current presence by adding 80 new stores, including significant international and first-to-market brands, as well as 20 new food & beverage outlets and an entertainment complex, providing New Cairo with a one-of-a-kind shopping and leisure experience.

Festival Avenue will provide several opportunities for Egypt’s youth and industry experts. With this new development, over 1000 construction jobs were created and more than 3000 new retail job opportunities. Festival Avenue further supports our vision of creating distinct retail concepts and boosts the country’s stance and positioning among international fashion destinations. With the rise of luxury brands and the continuous nurture and advocacy for this sector, undoubtedly Egypt will be recognized as a key regional hub and a potentially profitable market for global luxury brands. Empowering Egyptian Fashion Designers is of paramount importance to CFC Mall. As part of our efforts to support them, we collaborated with Vogue Italia to harness these talents, introduce them to the international market and provide them with a strong platform to showcase their talent abroad through the “Cairo Fashion Experience” (CFE) scouting project. This partnership seeks to promote the next generation of fashion designers via targeted and extraordinary projects that draw on cross-country collaborations. Through CFE, three finalists will be selected from the Egyptian designers participating in the project and will have the exclusive opportunity to be mentored by Vogue Italia, exhibit their collection at Milan Fashion Week in September 2022 as well as provide them with a pop-up display at Festival Avenue. Cairo is one of the largest retail markets in the Middle East and North Africa, which drives demand in the region given the country’s population, and strategic location. While competition is fierce, in CFC Mall, we plan and execute different activities to position and differentiate the mall as the ultimate fashion destination in Egypt. We have extended the retail experience in Egypt beyond the shopping aspect through Cairo Fashion Experience; which has added value to the local fashion ecosystem by scouting emerging Egyptian designers, in a first-of-its-kind strategic partnership with Vogue Italia. As we plan to bring international luxury brands to Egypt, we also want to support emerging Egyptian designers build their luxury brands and become international labels. Reference: https://research.euro.savills.co.uk/uae/dubai/savills-egypt-property-report2021---en.pdf

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REGIONAL ROUND UP FEATURE - IRAN

THE UPS AND DOWNS BUT GROWING PATH OF

E-COMMERCE IN IRAN

Shahrokh Keshavarz is the Founder & CEO of Golden Business Magazine and MECS+R Regional Representative in Iran. He has 15 years of experience in the media, retail and shopping centres industry. He started his career in retail and shopping centres in 2009. Shahrokh is an expert in developing action-oriented business plans and targeted marketing strategies that lead to market growth.

ore than a decade ago, when the Iranian business environment was entirely based on physical and traditional supply and demand, an online retail store for electronic equipment, including the sale of photographic equipment and mobile phones, was born in Iran called Digikala. Ignoring the phenomenon of e-commerce and lack of awareness and trust in virtual sales means that the customer was not able to touch the product, as well as meet and talk face to face with the seller, were among the challenges of this great idea from 2005 to 2010.

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SHAHROKH KESHAVARZ

Founder & CEO Golden Business Magazine MECS+R Regional Representative - Iran

Gradually, with the expansion of cyberspace development in the world, the Iranian market also benefited from this approach. The interest in using this method of preparing products increased, and this was a source of encouragement for more activists in the field of e-commerce. From 2011 to 2022, a Dutch company with an investment of $100 million transformed Digikala, which was a promising path for e-commerce enthusiasts in Iran. For this reason, the number of online stores in Iran increased rapidly and this trend continued, which is why retail brands

have also found a great desire to cooperate with these virtual stores. Gradually, other stores such as Banimod, Okala, and others were established. Unfortunately, the Covid-19 crisis broke out and all equations collapsed. Physical sales channels were completely blocked, and all retailers, with a strange and unimaginable growth, turned to online sales. In this two-year crisis, the share of virtual stores in e-commerce increased unprecedentedly in the world including Iran. Thus, brands also thought of creating their own online stores. Because of this, the growing trend of developing e-commerce markets doubled which was faster than before the Covid-19 crisis. In the last two years until today, almost 90% of retailers have created e-commerce market capacity in their collections. Today, they have fully accepted e-commerce as a complement to the process of selling their products. In terms of social media platforms, Instagram is the most widely used social network in Iran which has the largest e-commerce market in the country in terms of the extent of users. It seems that in the next two years, the amount of e-commerce in Iran will gain a much larger share, and connecting to global markets after solving political problems and lifting international sanctions can provide the conditions for further development of this business model in Iran.

Given the convenience that this business model creates for customers, it seems that gaining the trust and satisfaction of consumers in this large market requires serious development of e-commerce in Iran. This will only be made possible if there will be a cooperation between programmers and developers of virtual solutions. In the meantime, considering that Iran has customers from younger generations who are trying to maximize their share of this market by providing correct information and teaching how to use the benefits of e-commerce, brands of chain stores, shopping centres and online stores will continue to have massive growth. In addition, since the use of online or e-commerce is both simple and enjoyable for the younger generation, they will continue to use and explore this concept in the retail industry.

In Iran, we are still working on having the privilege of utilizing mobile payment services or purchases via Instagram platform or integrating international cards as payment options. The volatile economic conditions and lack of information and sufficient familiarity of the people are the current problems in the field of e-commerce. Apart from this, considering that Iran has a strong hardware and software infrastructure in the field of banking and on the other hand has a market of 85 million consumers, the prediction that this market can be equipped with all e-commerce tools is not far fetched.

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REGIONAL ROUNDFEATURE UP - KSA

RETAIL TOURISM IN THE KINGDOM OF SAUDI ARABIA

THE PAST, THE PRESENT & THE FUTURE

MOHAMMAD ALAWI

Partner & Chief Executive Officer Real Estate Development Solutions (REDS) Member - Tourism & Cultural Sector Council, Jeddah Chamber, Executive Committe Chairman Red Sea Markets Co. (Red Sea Mall)

A strategy think tank, with over 35 years of experience in creating successful developments and renovating existing retail properties in the Kingdom of Saudi Arabia. Mohammad is a public Saudi figure on the retail scene. He moves ahead of his time by utilizing all the state-of-the-art resources to achieve his goals. Currently, Mohammad serves as the Chairman of the Board for Jeddah Central Markets, Member of the Tourism Cultural Sector Council - Jeddah Chamber, Chairman Leasing Committee for AWJ Holding, CEO and Partner of Real Estate Development Solutions (REDS) , Board Member for Azad Properties and Executive Committee Chairman at Red Sea Markets Co. (Red Sea Mall)

reviously called the Arabian Peninsula, now lies a kingdom of trade, people and a long history of prosperity and resilience. Trade flourishes in this area since ancient times, even before Islam comes to the land of Saudi and even before Prophet Muhammad. In fact, it was mentioned in the Quran, a verse in the holy book of Quraish and Surah about a trip to the North during the summer and South to now Yemen, in the winter. It was called the famous trip of the winter and summer.

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Traders venture this part of the world all the way to Syria, where it is used to be called Sham, and all the region to Palestine, Iraq and all other places going to Asia, Europe and Africa exchanging all manners of products. This is the Kingdom of Saudi Arabia - an intersection for the world, where millions arrive at marvelling souqs and bazaars akin to the ‘Grand Bazaars’ in Istanbul, Turkey, Damascus and Egypt. Today with its centre in Riyadh and Jeddah, it is the hub transit for retailers. Jeddah is the gate to access the two holy

Early this year, the government launched the “Digital Tourism Strategy” to help enrich efforts of rebuilding the tourism sector in the Kingdom of Saudi Arabia in a way that realizes the objectives of Vision 2030. Just recently, the 2022 Saudi Arabian Grand Prix (officially known as the Formula 1 STC Saudi Arabian Grand Prix 2022) was held at the Jeddah Corniche Circuit in Saudi Arabia. A lot of tourist people came from GCC, Europe and other countries. One of the discussions I had with the people I met is about their experience in visa application which they find very easy. This proves that more and more tourists will visit the Kingdom. Aside from the visa, there are a lot of actions that have been taken care of when it comes to tourism to attract more tourists to the country.

mosques, especially for the trip of Hajj to Madinah. It becomes an exchange, a wall street for retail you might say, where people can bring their products to and from the local market. A big business, developed by the people that by blood and history are known as traders of the old world. This environment evolved to be “Shopping Malls” and like its reputation in the old era, is now a thriving industry for the modern world. Trade is by blood in the KSA or in this region where people believed that trade is building cultural relations between people in different languages.

The Vision 2030 and what it means for the Retail and Shopping Centre Industry

The Covid-19 situation has been a challenge, but it is also true that through the pandemic we learned, just like from many difficulties we have faced before. It helped us develop more streamlined processes, planning and developing the right technology. Today, not discounting the fact that this experience has been difficult for all of us, we bounced back stronger and bolder. An efficient and effective application of Metaverse, retail applications and even new visa processing tools to name a few, will further make our country more accessible and convenient for all. Megaprojects are happening left and right, with huge components of retail and entertainment. To name a few, these are NEOM, The Rig, The Oxagon, and with all things coming (let’s call it “cooking”), we are now able to see more and more flavours of Saudi Arabia, to cater for all nationalities around the world. This is the right time to come and explore. Capitalize on all new projects happening in the kingdom, as this will create jobs, businesses and opportunities. Saudi Tourism will bring a big positive impact economic wise. With the growth of tourism in the country, I can say that retail is the most lucrative business for the young generation to pursue their career.

Under the leadership of the Custodian of the Two Holy Mosques, Vision 2030 was launched, a roadmap was drawn up by His Royal Highness King Salman and the Crown Prince, Mohammed bin Salman, to harness the strengths God bestowed upon Saudi – the strategic position, investment power and place at the centre of Arab and Islamic worlds to capitalize the major assets of the country. One of the major assets of the country is tourism and it has been a key area of focus. Tourism in Saudi Arabia is full of heritage. A long history of heritage and great places that have never been seen will attract millions, if not billions, of global citizens. Tourism is the major pillar of Vision 2030. With this initiative, in cooperation with the Tourism Project Fund, we have seen the start of major developments starting from the north near the Jordan and Iraq border, to the South where you will feel and see the rain and forests. The Vision 2030, forecasts around 100 million tourists every year and we have already recorded 15 million visitors in the last few months arriving in Riyadh.

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REGIONAL ROUND UPFEATURE - OMAN

Oman Retail Industry

Market Insights and Growth Forecasts HUSSAIN K. JAMAL, CSM, CLS Head, Mall Operation Mall of Muscat MECS+R Regional Representative – Oman

estled on the edge of the Arabian Peninsula the Sultanate of Oman is an exotic destination filled with incredible attractions and cities. No wonder it has been recently declared the seventh-best tourist destination in the world due to various factors such as environmental richness, biodiversity, and the unique nature of its reserves. The Retail Sector in Oman has its roots, like many of its contemporaries in the Souqs and Markets along the coastline and harbours which were major trading hubs for businessmen, this trend continued up until the late 80s when the first of the many new shopping malls such as Sabco Centre (Qurum) came into play. The coming decade brings more much smaller centres cropped up throughout the city such as Al Araimi

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Centre and Zakher Centre. In the Early 2000’s, the country witnessed the opening of big format Shopping Centres such as City Centre Muscat followed by centres namely Muscat Grand Mall, City Centre Qurum, Markaz Al Bahja, Avenues Mall, Oasis Malls and Al Araimi Boulevard. Fast Forward to 2019 and the country witnessed the opening of a landmark luxurious destination centre, Mall of Muscat, which embodied the future of shopping malls. With a clear distinction in lifestyle, leisure and entertainment components including the only public aquarium in the country, ‘Oman Aquarium’. And then came COVID-19 which dealt a devastating blow to the retail industry due to the crippling restrictions on the business which was needed to curtail the spread of the disease.

As of today, the retail real estate market in Oman has emerged from the crisis quite strongly with some positive news and developments. Notably, the opening of Mall of Oman in September 2021, has provided a shot in the arm to the retail industry once again bringing world-class retail brands to the market boosting both the retail offerings and at the same time offering employment opportunities to the local workforce. Salalah, on the other hand, witnessed the opening of Salalah Grand Mall complementing the existing shopping malls in this major city in the Dhofar Region. The last quarter of 2021 witnessed the resurgence of mainstream marketing and customer engagement activities done by shopping malls. Oman Avenues Mall launched its Mobile App and Loyalty Programs which were heavily promoted. Another major mainstream marketing campaign was conducted by Mall of Muscat for its 2 months long, salesdriven marketing promotion “Winter Festival” which was promoted utilizing ATL, BTL & TTL marketing tactics and was quite successful in elevating the sentiments of the public in general. The year 2022 started with the announcement of the Most Trusted Brand Awards conducted by Apex Media which was

adjudicated through public voting in which about 800,000 people participated. The awards recognized businesses across all sectors which had received the public’s trust, while Carrefour received the award in the Hypermarket category, Mall of Muscat won the prestigious award in the Shopping Mall category. With regards to new developments in the country, IKEA is expected to open in June 2022 at Avenues Mall bringing the much-loved brand to the capital city. Moreover, all shopping malls are doing their bit to entice customers to their mall during Ramadan & Eid such as the Mall of Muscat Festival, celebrating its 3rd Anniversary, Ramadan & Eid through a unique digital instant Spin & Win Promotion, Fun Activities for Kids and Ramadan Night Market. The months ahead look promising for the country’s retail business with all major shopping malls witnessing significant improvements in customer footfall as customers returned to their normal shopping habits after a long hiatus due to the COVID-19 restrictions. There is hope and optimism that the positive momentum generated will be sustained and will continue to improve as we move towards the succeeding months.

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REGIONAL ROUND UPFEATURE - OMAN

POST PANDEMIC

OBSERVATIONS Gogi George has been working in the retail sector in the Middle East region for the past 20+ years. He is the GM for Project Development and Leasing for Lulu Group International and oversees retail developments for the group in Oman. A veteran and turnaround specialist in mall retail development and redevelopment, Gogi has been in a leadership role for several iconic projects and has been instrumental in the multiple expansions of Oman Avenues Mall including the new IKEA anchored expansion to name a few.

OVID had a significant impact on the way we live, how we conduct our lives and how we have adapted to new and emerging retail trends.

In the year 2020, COVID resulted in significant business disruptions in the retail sector in Oman. In fact, there are some sectors that have been fully closed for business for more than 270 days due to the containment efforts. 2021 had also a significant impact, however, the latter part of the year was in a waning stage. The start of 2022 offered a glimmer of hope for the sector with the majority of restrictions being relaxed including capacity restrictions in parking and mall entries, allowing the major foot to fall centric areas like FECs, Restaurants, Cinemas etc. to operate with minimal restrictions.

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GOGI GEORGE

General Manager, Development & Leasing OMAN AVENUES MALL LULU GROUP INTERNATIONAL MECS+R Board Member

What are the notable post-pandemic behaviours visible?

E-commerce emergence as an alternative to brickand-mortar business was accelerated during the pandemic, however, retail is slowly returning to the traditional format, understandably due to the experiential and engaging behaviours missing on e-commerce platforms. While e-commerce businesses are predominantly driven by convenience,

accessibility and range of products, customers in Oman to a large extent are driven by the desire to physically experience shopping which cannot be easily replaced by E-commerce. Shopping behaviours are to a large extent dependent on weather conditions in the Middle East wherein the summer season prompts more regular mall visits for local residents as malls are considered a preferred lifestyle pursuit. We are seeing steady business build-up for experiential formats in some categories especially restaurants, entertainment, and leisure venues. Like to like data reveals double-digit growth in footfall and revenue numbers post-pandemic. Cinemas were one of the areas which had a profound impact during the pandemic, not only due to the restrictions on attendance, but also due to the fact that there were very few movie titles or content being available for cinemas. The beginning of 2022 has seen a flurry of new releases owing to the backlogs which are reflected in improved attendance numbers for cinemas. In addition to this is also the fact that moviegoers are more confident due to the low levels of COVID prevalence during current times. Permanent shifts in some behaviours – cashless transactions are here to stay for good, and this is visible from reduced ATM transactions as well as large numbers of banks now moving their focus on payment services and solutions. Safe and hygienic environment is now considered an essential part for most mall visitors to be comfortable.

Retailers are now exploring new venues for marketing their products including using AI and data-driven marketing efforts. There has been a paradigm shift from traditional marketing toward digital marketing drives. Disruptions are evident on logistics and supply chain fronts – multiple retail formats are reporting key issues with logistics and supply chain disruptions owing to backlogs, logistics and manufacturing issues in many industrial hubs. These are evidently going to affect the inventory situation with retailers as well as impact new store openings. Retail being very dynamic, the experiential elements around retail would also be very dynamic and experience-driven.

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REGIONAL ROUND UPFEATURE - QATAR

Massive infrastructural developments on the back of the upcoming FIFA World Cup Qatar 2022TM a pick-up in economic activities, coupled with high hydrocarbon prices point toward an upward growth curve in Qatar.

he International Monetary Fund (IMF) estimates Qatar’s real GDP growth to reach 3.2% in 2022, underpinned by elevated hydrocarbon prices and recovery in the tourism sector. Improvement in consumer spending is visible too. According to Fitch Solutions, the real household spending growth in Qatar is set to touch 3.6% up from the estimated growth of 1.0% in 2021. Qatari households’ spending is expected to recover to pre-pandemic levels by 2023. All indications point towards an upward growth curve in Qatar. While the four-year blockade imposed on Qatar in 2017 caused an initial economic shock, the GCC country leveraged hydrocarbon resources and international ties to overcome the negative impact. Qatar’s non-reliance on tourism at that

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ALESSANDRO GAFFURI Founder & CEO, CELS Group Board Member, MECS+R

time [of blockade] could be seen as a boon too. That coupled with in-country spending on luxury goods by local Qataris [as they didn’t travel and shop in some of the neighbouring GCC countries, although they still shopped in fashion capitals such as London and Milan] offered a much-needed fillip to retail and shopping mall industries. Infrastructure development related to mega projects aligned with FIFA World Cup Qatar 2022™ including stadiums, hotels, malls, hospitals, roads, railways, an underground metro, a light rail line, and an airport extension – has continued at an unhindered pace. However, the pandemic has caused woes for the Qatari economy causing inflationary pressures.

At Crossroads of Exciting Developments The estimated growth forecasts point toward Qatar being at the crossroads of exciting developments having a clear spillover impact on the retail real estate industry. However, a look into the past is crucial to understanding the pace of change. When I first came to Qatar in 2013, there were only three-four traditional shopping centres and the Villaggio Mall was an early attempt to develop a “destination mall”. Then the mid-range Gulf Mall, Ezdan Mall and Tawar Mall, among others appeared. This was followed by the emergence of super-regional, premium malls including the Mall of Qatar, Doha Festival City, and Place Vendôme [opened its doors on April 15]. Within a decade, the Qatari shopping centre landscape transformed from being traditional and limited in GLA (gross leasable area) to becoming a new generation of super-regional malls. In fact, a cautious evaluation is perhaps necessary to avoid issues arising from an oversupply of leasable areas. Over the past decade, the pace of transformation in Qatar retail real estate industry has been breakneck. In the past couple of years, there has been an incredible shift in the retail and shopping centre landscape that paused briefly due to the COVID-19 pandemic.

Crafting Immersive Experiences in the Age of Hybrid But infrastructural development alone isn’t enough. Developments must go hand-in-hand with innovation, with a clear goal to transform retail spaces into destinations. Gone are the days when shopping centres were spaces that met the necessities. In the current age of hybrid when almost everything can be purchased in a few clicks, what will drive people to the shopping centres is a key question! The answer lies in multiple clearly visible trends in the Qatari shopping centre landscape where F&B and entertainment are taking centre stage from being outliers and unique experiences are at the heart of successful destinations such as Mall of Qatar and Doha Festival City. A vision that we’ve been living and breathing at CELS Group by developing edutainment-based, highengagement activations to enliven spaces, making them social as opposed to transaction only. In the age of hybrid, digitalisation is here to stay. But it won’t replace human connections. Therein, even digital interactions must be two-way to delight customers. An area that we have pioneered in Qatar by deploying our highly interactive digital solutions used by the Qatar Tourism Authority for its ‘Spend & Win’ campaigns during the ‘Shop Qatar’ seasons. Such integrated communication and activation plans play a pivotal role in nurturing a strong relationship with existing customers while attracting a new base. Alongside digitalisation efforts, the tangible benefits of festive lights decorations on consumption patterns are clear, a phenomenon that’s driven by a sense of immersive engagement. Studies prove that bright decorations have a positive influence on customer mood and perception. Historically, when Christmas decorations go live in Europe in city centres, the level of consumption spikes in the shopping centres beginning in December. The reason why global retailer, IKEA, starts its Christmas decorations beginning of November or earlier to leverage holiday driven sales.

Way back in 2014, we witnessed similar results from our immersive Ramadan decorations at the Katara Cultural Village. It pushed the boundaries of immersive experience and set the pace for what would follow in the shopping mall space. Within 12 months of that engagement, we signed up The Gate Mall, Landmark Mall, Lagoona Mall, Doha Corniche and the second year of engagement with Katara Cultural Village. Over the years, along with Ramadan and Eid even festive winter decorations have become integral to the success of the campaigns run by the shopping centres and retail brands in Qatar.

The Strategic FIFA World Cup™ Promise Looking ahead, several developments will continue to positively reshape Qatar. For instance, the FIFA World Cup™ has, historically, been a driver of massive change. When the World Cup happened in Italy, we saw new developments through highways, train stations and more being built. Even the Winter Olympic Games in Turin and the 2010 Commonwealth Games in New Delhi have accelerated developments boosting economies from the time of award to delivering the event. It isn’t much different in the case of Qatar. However, the thought process that 30 days of the FIFA World Cup™ can drive an incredible increase in turnover or development is a myth. It’s a huge opportunity to place the country, Qatar, on the global map. The FIFA World Cup™ will also transform cultural perceptions about Qatar and its future based on developments that have happened over the past few years. The tourism impact from such global events will undeniably drive revenues, paving the path for future cultural, sports and art events, aligned with Qatar National Vision 2030.

Tips to keep brick-and-mortar relevant Design brick-and-mortar spaces differently as experience centres. Create logistical hubs to support the experience centres by offering hyper-fast deliveries at preferred doorsteps. Harness the power of a relationship with visitors by becoming their favourite destination to socialise and shop. Curate various offerings ranging from theatres, F&B, and retail stores to fitness centres, co-working spaces, medical centres offering visitors everything under one roof. Create novelty through a constantly evolving exhibition & conference area adding uniqueness to the space.

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REGIONAL ROUND UPFEATURE - QATAR

THE FUTURE OF

FASHION BUYING Katerina Ilieva is a highly experienced, strategic senior buying professional. Buying for global top-ranked Department Stores (Printemps, Harvey Nichols) as well as stand-alone mono brands (Giorgio Armani, Balenciaga, Chloe, Stella McCartney, Alexander McQueen, Loro Piana to name a few). She has a deep knowledge of the GCC retail landscape, its practices and niche challenges. WHAT IS A FASHION BUYER? Being a fashion buyer may seem all glitz and glamour. In fact, hard work, long hours and relevant skills are required to become a successful Fashion Buyer. Fashion buying is one of the most important retail functions. Done properly, it positively improves sales, margins, overall profitability and the ongoing success of the retailer. Maximizing sales is the ultimate goal of fashion buying in the retail business. You must balance between art and science, have a strong sense of numbers and have a keen eye. You’ve got to be creative.

FASHION BUYING & COVID-19 Normally, the job of a fashion buyer requires extensive travelling, visiting showrooms and attending fashion shows. Pre-pandemic, buyers would scout new trends by visiting

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KATERINA ILIEVA

Buying Manager - Luxury Fashion DOHA, QATAR

stores and meeting emerging designers. Fashion shows used to be the primary way for a brand to showcase a new product. Brands have traditionally followed a universal buying calendar when releasing new collections. Global pandemic restrictions have temporarily eliminated the possibility of gathering together, whether for large-scale fashion shows or intimate showroom appointments. That inability of buyers to review new collections in person has forced the industry to get creative. For an industry that prides itself on creativity and innovation, fashion is usually notoriously slow to change the way it operates or adopt new technology. Think about how long it took for many luxury brands to launch e-commerce. However, COVID-19 has propelled the fashion industry to adopt new norms and digitalize the process to make it faster than ever before.

DIGITAL BUYING & VIRTUAL SELLING If 2020 unleashed numerous challenges, 2021 accelerated the future strategies inspired by the innovations undertaken to meet those challenges. The most effective and productive innovation of these times has been the unprecedented use of technology. Irrespective of where one is placed in the fashion value chain, the need for technology has never been as compelling as it is today. Be it the area of fashion manufacturing, distribution or retailing, no retail business can succeed without the edge that technology offers. Digital marketplaces have now proven their relevance in the fashion industry. Platforms like JOOR and NuOrder assist brands and fashion buyers by creating an online space that showcases products, using high-resolution imagery and an interactive user interface. Buyers are invited to visit the showroom at their convenience and explore the product selection visually. They can easily sort and subdivide products by colour, size, category, or other tags and build a digital shopping cart to place an order. NuOrder saw 125% growth driven by the effects of the pandemic. A 224% increase in users of their Retail Assortments Platform. An 87% increase in the number of orders placed by retailers year over a year certainly indicates the high growth of these platforms for fashion buyers in the retail industry. Joor has seen a 44% increase in the number of retailers using its platform and a 412% increase in visits to brands’ virtual showrooms in the back half of 2020. In February of 2021, Joor saw a 106% increase in wholesale transactions as compared to February 2020. The founders of Joor and NuOrder see a revolution finally taking place with fashion wholesale.

THE FUTURE OF FASHION BUYING: HYBRID APPROACH Fashion is a tactile industry. Fashion Buyers need to touch and feel what we are going to stock in our stores. This has been the main pain point during the past two years of digital buying. It is very difficult to see the drape in a dress, the sheerness of a fabric or the print on a top on Zoom or via NuOrder. NuOrder or Joor allow us to efficiently and effectively view the collections. We intend to be back in showrooms once it is safe to do so. The in-person showroom experience is important for Fashion Buyers. Very important for us to understand the overall collection, to see and feel the merchandise and individual garments in real-time. As the fashion industry now moves toward a “new normal,” We believe the future lies in a hybrid approach of virtual and physical showrooms. We don’t think we will ever go ‘back to normal normal.’ We will certainly use technology more often, whether for a product knowledge seminar for top Fashion Buyers across the country or quick check-ins with brands on their merchandise in development.

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REGIONAL ROUND UPFEATURE - QATAR

RETAIL IN

QATAR LEAPS FORWARD With over twenty-two years of experience in the retail real estate industry, serving on a number of leadership roles across some of the most prominent corporates and shopping centres in the Middle East region, Rony Mourani leads Assets Properties Management, part of the Qatar based Power International Holding Group, as Chief Executive Officer. He holds degrees in Business Administration, specializing in Management and Marketing, and a double major in Accounting and Finance from the Lebanese University.

atar’s visionary practices supported by assertive actions continue to place the country at the forefront with staggering developments. Since its launch in 2008, Qatar’s 2030 Vision provides a brilliant example of the progressive and evolutionary impact of wise leadership and inclusive professional and social practices. With a population of 2.8 million, Qatar still reigns at the top of the world with its GDP per capita that stood at US$62,500 in 2021 and is projected at approximately US$68,800 for 2022. Things continue to look favourable for Qatar as it is setting the stage to host the world’s second-biggest and most popular sports event, the FIFA World Cup 2022™, in November of this year. More than 1.5 million fans are expected to flock to Qatar to live the sensation.

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RONY JOSEPH MOURANI

Chief Executive Officer ASSETS PROPERTIES MANAGEMENT

The vibrant retail sector in the country is preparing for yet another boost and is readying itself to offer its shoppers and guests across 1.3 million sq meters GLA by the top twenty malls, a unique and premium experience. Mall of Qatar’s vision was and shall continue to be perfectly aligned with the social, economic, and environmental vision of the country and its business landscape. With over 200,000 sq meters GLA, 500 outlets of a magnificent diversity of offerings, and a 360° in-mall revolving stage that continues to witness world-class shows and concerts. Mall of Qatar stands out with its visionary initiatives and embracive customer journey optimization practices. While we will still see E-commerce scoring substantial growth, retailers are devising several strategies to ensure the physical

and online are synergistically the ROPO (Research Online, Purchase Offline). Our main focus is to create exceptional experiences for consumers by embracing the digital transformation as an opportunity. By adapting a technology to gain a higher level of customers’ insights and behaviour, understanding the value of each customer interaction with the mall brands and the level of satisfaction to measure progress towards business objectives to deliver greater services over products and price. To complement the experience, and aside from introducing new luxury brands, we are keen on devising ways to exponentially upgrade our offerings by bringing many new international signature restaurants to the luxury area with retractable roofs, a new Welcome Park adorned with water fountains and features, supplemented with a multi-purpose terrace, and a temperature-controlled environment for the F&B area.

The New Grand Zone shall stand witness to the Mall’s commitment to the quality of life and its support to education where they will be hosting fifteen (15) residential towers, equipped with prime and luxurious amenities. Because education is first and foremost, the Grand Zone houses the International Sherborne School offering 21stcentury educational facilities and means, while the upcoming University Campus will serve as an extension to the Education City of Qatar. The SMART campus features the latest breakthroughs in environment-friendly designs and overall wellness developments. Leaders are always taxed with continuously redefining and reshaping developments. Mall of Qatar’s mission remains faithful to our quest of bringing the best to Qatar. An amazing Boulevard, with an extension of a dedicated outdoor street, will house retail shops, entertainment, and carefully selected dining concepts. The whole area is creatively designed, with state-ofthe-art architecture and empowered with advanced technology that will create a mini world of immersive experiences. The Big Boxes are new buildings that will provide mixed uses including a large department store, retail outlets, a warehouse, a parking deck, and a rooftop garden. For tourists who appreciate luxury, hospitality and an abundance of physical and emotional wellness, The 5-star Al Rayyan Hotel Doha, the first Curio-operated property in Qatar, provide such a destination with a highly recognized international F&B offering. Guests will be hosted and served by world-class guests and service centred, professional, competent, and talented staff that will ensure delivering a delightful journey at every stage and detail of their stay. With the realization of each of our endeavours, we edge closer to the continuity and success of our mission which remains to deliver fully inclusive and gratifying experiences that will promote the economic, social, environmental and well-being of Qatar, its citizens, inhabitants, and visitors.

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REGIONAL ROUND UP - UAE | SHARJAH FEATURE

THE MIXED-USE

COMMUNITY LIVING Jamal Al Shawish, Chief Sales and Marketing Officer at Alef Group, is an expert in shopping mall and real estate development, boasting nearly two decades of experience locally. In this role, he has facilitated sales of more than AED2.5 billion in the past two years, achieving the highest quarterly sales record.

he demand for real estate across the United Arab Emirates increased last year, with property market shares continuing to grow, largely due to increased efforts and support from various government initiatives. Growth trends, fruitful business, economic conditions, speedy recovery from the pandemic, and the UAE’s status as the world’s leading luxury destination have intrigued investors and families globally to consider UAE their new home. The UAE, as a whole, has witnessed tremendous growth, particularly in the creation of fully-fledged communities for families to thrive. This comes in response to an influx of newcomers to the region, who wish to settle and avail opportunities, and have a better life within the UAE. Recent visa reforms have made it easier than ever to relocate to the region from any part of the world. The Emirates collectively host more than 190 nationalities coexisting in peace and harmony in communities constructed under the guidance of best international practices, promoting

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Jamal Al Shawish

Chief Sales & Marketing Officer Alef Group the highest quality and standard of living. The prolific business environment and excellent infrastructure make the UAE an excellent locale for both singles and families to flourish. However, finding adequate space to accommodate the growing needs of the urban landscape has been a constant battle for large cities, not just in the UAE but around the world. Unlike many parts of Europe where greenfield sites can be problematic due to issues around land ownership and possible contamination, the UAE has historically been able to provide a blank canvas of greenfield sites for mixed-use developments. With more flexibility shown towards urban planning, the UAE has also benefitted from the freedom to be innovative with its vision to develop mixed-use developments within a sustainable urban environment. There has been an increased focus on sustainability and driving energy

efficiencies through green buildings, reducing energy consumption, and optimising water usage, all underpinned by a government desire to implement best practices to achieve sustainable and livable cities The challenge in the UAE is to create a sustainable, livable city that offers appeal to an extremely multicultural and financially diverse mix of end-users. The UAE continues to concentrate on transport planning in its quest to understand the impact of developments on surrounding transport networks. Within the UAE, individual Emirates are moving towards mixed-used communities especially the Sharjah Emirate which under the vision of His Highness Dr Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has seen an upswing in real estate projects catering to families looking to establish and live a healthy lifestyle. Sharjah offers many attractions to families including its iconic Child-Friendly City and Arab Tourism City. The Emirate has received numerous awards and prides itself on wholesome real estate projects with a holistic approach to life and a focus on human well-being. Projects incorporate landscapes with easy access to world-class schools, parks, shopping and retail complexes, sports and gym facilities, as well as fine dining and restaurants. The pandemic propelled the world into a new way of working and living, where the very notion of community has changed. Traditional communities now co-exist alongside communities that are no longer bound by geographical location. Mixed communities promote a sense of community by bringing together employees, visitors and residents, enabling socialization and cohesive communities. Working from home taught us that flexibility is key to building resilient communities and economies, no matter where you are in the world. This has further created a demand for balance and seamless integration of work, home and social lives, a demand that can be met with the employment and housing opportunities presented by mixed-use developments. Modern communities must be built with firm foundations of world-class construction and design, focused on key areas such as efficiency, sustainability and livability.

In Sharjah, mixed-use developments are fast becoming the most sought-after places to set up homes. Al Mamsha, Alef’s flagship community in Sharjah, prides itself on being the firstever walkable community, promoting a healthier lifestyle. With a variety of residential buildings including studios, 1-23 bedroom apartments and duplexes, Al Mamsha Sharjah offers a world of convenience with its retail market in close proximity to University City of Sharjah and Sharjah Airport. The newest natural villa community from Alef, “Hayyan” is one of the best examples of a mixed-use community in Sharjah. Boasting Sharjah’s largest community park and largest swimmable crystal lagoon for residents, the development includes 1836 residential buildings comprising luxury villas, townhouses and mansions as well as land allotments for natural vegetation and edible gardens, high-end pool, gym and sports facilities. While the future is undetermined for many industries across the globe, mixed-use developments like those in Sharjah and the wider UAE, will guarantee plentiful investment opportunities, leading to economic growth and stability for urban areas. Mixed-use developments are better at adapting to changing social and economic environments due to their multifunctionality and pre-made community. While people benefit from having homes, workplaces and social interactions closer together in mixed-use developments, investors will also reap the rewards of diverse portfolios. Not only are diverse portfolios more resilient to shocks but having the ability to respond to community needs is what secures longevity. UAE continues to grow in its property sector, with multiple accomplishments pushing the country to the forefront of the world as pioneers of sustainable community and healthy living.

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REGIONAL ROUND-UP - UAE | ABU FEATURE DHABI Le Carrousel Mall, Rabat, Morocco (IMKAN)

RETAIL LEASING IN

MIXED-USE DEVELOPMENTS During her nine-year tenure in UAE, Luann has worked for MAF & IMKAN Properties where she managed business and delivery development, and retail leasing initiatives. A proud native of Brooklyn, NY with over 20 years of experience in real estate development, she has led and executed growth plans for Fortune 500 companies (Macy’s, McDonald’s, Yum & Clearview Cinemas).

he UAE retail market remains robust despite a contraction in total retail sales volume in 2020. Accordingly, the Economist Intelligence Unit forecasts 2.6% annual growth over the next three years. Macro factors contributing to this are the country’s highest vaccination rate globally, labour law reforms, new flexible visa options and a revised work week to align with the western world. Moreover, the UAE’s economy is significantly fueled by SMEs which account for over 85% of its businesses. In 2021, 69% more business licenses were issued than the year prior. All the above has paved the way for real estate leasing in mixed-use projects to be a more productive and unique proposition.

PAST The origins of mixed-use typology can be traced back to medieval times in ancient Rome for example with shops and apartments co-existing in multi-unit structures. Fast forward, this concept advanced globally at different rates and scales

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LUANN PARKER

Real Estate Consultant

but reached an impressive inflexion point as land became scarce and cities quickly grew crowded as a result of massive migrations from the outlying communities. However, the UAE and surrounding countries evolved in this respect at a much slower pace given the vast greenfield area available to be developed. As a very young nation, UAE chartered an overall plan for base-level municipal and infrastructure planning to ensure the future-proofing of such developments. By the 1990s, mixed-use projects were primarily low-rise residential or hybrid (residential and office) with relatively small areas of retail space for lease. The typical tenants found in these complexes were daily needs/services such as supermarkets, pharmacies and dry cleaners. Sub-par F&B locations existed mostly with fair to average aesthetics and operations. By 2007, an unprecedented rise in residential construction occurred mostly in Dubai. Most projects lacked a complete synergy between the residential/office and retail

components to provide for a 360 community. Exceptions to this model included the newly created districts like JLT, Downtown, Business Bay, and DIFC.

Sheikha Fatima Bint Mubarak Park Abu Dhabi, UAE (IMKAN)

PRESENT Over the last decade, the definition of mixed-use development has further evolved to be an urban plan consisting of one or more elements including residential, commercial, cultural, recreational, and institutional uses. This has been driven by increased standards of developers to enact placemaking principles which elevated their quality of design with the addition of more lifestyle amenities to better reflect the character of the main project’s principles. In parallel, COVID-19 has challenged developers to attract retail tenancies that not only have improved standards of excellence, variety and customer experience, but that also have meaning, something of more importance to customers in response to the pandemic. As a result of the above and heightened customer hesitation to visit brick & mortar retail, developers have sought to provide retail mixes that residents and visitors would prefer to avail rather than visiting traditional shopping malls. Accordingly, several developers in the UAE and the region have successfully curated truly unique and diverse retail tenant mixes in their mixed-use developments. IMKAN Properties redeveloped Sheikha Fatima Park to be Abu Dhabi’s first urban lifestyle park with something for everyone. Pet lovers have the Emirate’s first dog park. Fitness enthusiasts crank it up at CRANK Fitness. Infants/toddlers enjoy the best sustainably designed nursery with Reggio Emilia taught principles. A mix of F&B primarily created by start-ups have sole locations in the park. The roster doesn’t stop there as the fundamental offering of a picturesque outdoor setting provides premium yet affordable choices in quality and healthy living. In Rabat, Morocco, IMKAN’s Le Carrousel mixed-use masterplan currently under construction, promises to deliver an unparalleled mix of retail, leisure and F&B. A cinema with live jazz entertainment, retail concepts new to Morocco

and F&B unique to Rabat will bring diverse offerings to this country. Other local examples can be seen with developers such as ALDAR Mamsha Al Saadiyat, Water’s Edge, EMAAR Burj Downtown, MERAAS Citywalk, Bluewaters, and ALJADA Arada. These types of communities enable residents, workers, and visitors to seamlessly integrate their work, home, and social lives in a more purposeful differentiated way.

FUTURE With over 55% of the world’s population living in urban spaces, the future definition of mixed-use development as it relates to retail leasing will further evolve. The growth in e-commerce is undeniably revolutionizing the playing field of bricks and mortar retail whose prevalence will continue in a region of weather seasonality. The digital space will shape or arguably dictate the retail space by bridging social, media, technology and experience into emerging, evolving or transformational concepts. This new generation of retail concepts will give even deeper meaning and variety to mixed-use developments which is exactly what customers want. But stressing all of this is a business environment positively and progressively shaped by the UAE government. The outlook is vast, exciting, and limitless for mixed-use development communities.

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REGIONAL ROUND-UP FEATURE - UAE

THE EVOLUTION OF MIXED-USE DEVELOPMENTS TO

PROMOTE EXPERIENCE AND CONNECTION

PAUL FIRTH

Associate Principal CRTKL

Paul brings 30 years of unique experience designing, planning, and delivering large retail and mixed-use projects throughout the Middle East and Europe. Combining placemaking skills with retail planning knowledge is a unique aspect of his work, in parallel with a strong retail design sensitivity and an in-depth knowledge of the project delivery process. As a highly experienced architect with a background in design and management, Paul offers a unique and tested project approach with strong leadership and effective communication skills.

ixed-use destinations are being redesigned with enhanced food and beverage options and exciting entertainment facilities to attract customers in the post-pandemic era. Single-use, destination retail is becoming less viable as traditional environments evolve to proactively respond to the modern consumer with a regained sense of purpose and identity.

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While mixed-use developments were previously anchored by libraries, health and childcare centres, gyms and swimming pools, later centres have placed commerciality over the community. Where previously there was a desire to make centres ‘watertight’ and retail planning became an almost anti-town centre, today experience and connection is everything.

Instead of a store anchoring a retail development, retail becomes the anchor or ‘lead’ for a mixed-use environment. Likewise, arenas, theatres or galleries have given rise to sports-led and entertainment-led mixed-use environments that may be further anchored by an office, hospital, airport, a set of privately rented homes or hotel and tennis academy. Immersive environments curated to attract, serve, and fuel their local communities first and visitors second are the future. In many ways for the region, it is a return to the mall of 3,000 years ago and the traditional souqs that inspired them. More than somewhere to shop, these thriving places were the heart of social, artistic, athletic, spiritual and cultural expression – economic drivers that brought citizens and consumers together with local merchants and artisans. The Grove on Abu Dhabi’s Saadiyat Island is an example of a leading culturally dynamic mixed-use development designed to embrace a whole lifestyle around three worldclass museums and architectural wonders in themselves. The Grove successfully creates an authentic culture-based development that not only complements the museums but also enriches them at the same time with the signature residential and commercial community designed to enhance the value of culture by bringing it into every aspect of living, even for those that work in or just visit the destination. The Grove builds a connective fabric throughout the space, giving a cultural identity to the city and allowing residents and visitors to experience life as an art via aworld-classs public realm. A cohesive cultural fabric has been stitched together to connect the mini-city to the museums and then back to every part of the city in a truly integrated fashion. This has created a definitive cultural destination in the world, adding value to both Saadiyat Island and Abu Dhabi as a whole. Moving forward, mixed-use developments can incorporate more lifestyle concepts into the mix and place entertainment and community at the core. Even a single store with a car

park can be transformed into an area that enables lasting experiences and vacant flagship retail units could be filled with electric vehicle companies to support ambitiousnetzeroo targets in the Middle East region. Many mall developers and owners have an interest in retaining some portion of the existing mall within a new mixed-use setting. From a practical point of view, they seek to hold onto the most valuable retail tenants that still drive revenue both in bricks and mortar and virtual sales environments, while reducing the overall footprint of a mall that is larger than what the current retail universe supports. While there are cases where a re-development could eventually replace an entire mall, a hybrid indoor/outdoor shopping environment provides all-weather options in a mall, where sales are strong and have the potential to be stronger, particularly in the extreme summer heat in the Middle East. The more experiences a place can offer, the more consumer traffic it can generate as it is understood that if a space is entertaining, sociable, Instagramable and varied in its offering from season to season, it will encourage footfall, boost dwell time and, most importantly, inspire return visits. The aim should be to create a fluid mix of flexible, programmable spaces that cohesively provide moments to gather, celebrate, heal, eat, restore, work, convene, live, make and buy. Exactly what this looks like should vary based on the needs of the people the development seeks to serve and what already exists within the community – they should inform the brief and help decide what is the best fit. Over the coming years, mixed-use developments can harness the pent-up demand for in-person gatherings and stimulate culture in dynamic communities. Eclectic mixeduse developments will attract the modern consumer through connection with immersive environments utilised for exciting entertainment and leisure opportunities.

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Al Hokair Group Selected as Exclusive Agent for Brass Monkey in the Kingdom of Saudi Arabia Fahad Al-Fawaz, CEO of Al-Hokair Group, and Ziad Al-Senussi, owner of the Brass Monkey project, signed the agreement in the presence of several officials from the two companies. Mohamed Attia, Al Hokair Group’s General Manager of Entertainment, expressed his optimism regarding the partnership, noting, “We are pleased to sign the partnership agreement with Brass Monkey, a promising entertainment brand that has achieved remarkable success during the past two years. We are working in Al Hokair Group’s entertainment sector to enhance our portfolio and maintain our leadership position in the industry.”

As the Kingdom of Saudi Arabia’s entertainment industry continues to grow, emerging partnerships indicate the sector’s increasing strength in the country. One critical development is the partnership agreement between Al Hokair Group for Tourism and Development and the entertainment brand Brass Monkey. The partnership will see Al Hokair Group develop a range of destinations across several regions where customers can enjoy Brass Monkey’s unique approach to entertainment and fun.

Established in the United Arab Emirates, Brass Monkey has been combining good times with delicious dining featuring American and Asian dishes since 2020. The brand has enjoyed substantial success in a short time by focusing on creating happy moments filled with dynamic activities. Across its venues, it offers over 60 arcade games, bowling alleys, basketball, hockey, and nostalgic favourites, like Pac-Man, which appeal to all ages.

Al Hokair Group has been a dominant force in hospitality and entertainment for decades and is the recognized leader in tourism for Saudi Arabia and the wider Arabic world. Founded in 1975, the Group has invested in the entertainment and hospitality sectors under Sheikh Abdulmohsin Al Hokair’s leadership. Over the past five decades, the Group’s projects have expanded to include 80 entertainment centres and 35 hotels, and many cinemas, and restaurants across Saudi Arabia, the United Arab Emirates, and Egypt. Focusing on delivering exceptional quality through strategic partnerships and evolving expertise, the Group enhances returns on investment whilst advancing the entertainment and hospitality sectors in its target markets.

Majid Al Futtaim Launches Hybrid Digital Food Hall Concept Food is sure to satisfy your cravings with a wide array of cuisines and delicious dishes. Diners can choose from culinary concepts such as VOX Cinemas’ Candy Bar, Top Bun, Kitchen 35, Pizza Al Taglio and Nutella as well as exciting new additions including Epic Byrd, a fried chicken restaurant, and Akl El Beyt, which specialises in Lebanese home cooking.

Majid Al Futtaim, the premier shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia has launched its first hybrid digital food hall concept at City Centre Me’aisem. Combining digital and physical dining experiences, Halla Food consists of a single cloud kitchen, multiple homegrown F&B concepts and a 34-seater restaurant.

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Providing choice and convenience, Halla Food boasts seven restaurants and gives guests the option to have food delivered to their doorstep in three easy steps or collect it at the self-service pick-up cubbies and dinein. Whether you’re in the mood for authentic Italian pizza, big flavour burgers, pancakes, pizza or snacks for the perfect night in, Halla

Halla Food marks the latest F&B innovation from Majid Al Futtaim Leisure, Entertainment & Cinemas, which has been diversifying its offering in recent years with the opening of new homegrown concepts such as Kitchen 35, its first standalone café, THEATRE Café, an all-day dining destination and collaborations such as Akira Back at THEATRE with the globally renowned, Michelin-starred chef. Halla Food is located across from Carrefour Bio in City Centre Me’aisem and guests also have the option to order from voxcinemas. com, Deliveroo, Talabat and Zomato. Source: Hotel & Catering News (https://bit.ly/3K0WEHY)

Pickl is the first UAE Restaurant to Enter the Metaverse “In the future, we want our virtual restaurant to replicate the full customer experience of our real-world venues,” Flawith said. “We even plan to integrate it with delivery so customers can order their Nashville Chicken Sando or Double Cheeseburgers in the metaverse and then receive their burgers direct to their door — the full virtual-to-physical experience. We are actively exploring this possibility as we speak.” With Pickl planning global expansion outside the UAE later this year, the company says cementing its place in the metaverse is a natural next step.

Steve Flawith, Founder and Chief Executive of Pickl. Photo: Pickl

Burger joint Pickl has become the first UAE restaurant to enter the metaverse. The brand, which was founded in Dubai in 2019, has rapidly spread across the UAE, and will be launching a range of brand-themed games, Pickl NFTs and virtual apparel, which can be worn by your virtual avatar or exchanged for Pickl apparel in physical stores. “We are excited to take our first steps into the metaverse with the launch of a digital Pickl,”

said Pickl founder and chief executive Steve Flawith. “It’s the beginning of what we are sure will be a bright future for the brand in the virtual world. “In the short term, we will be able to hold meetings with our international teams and showcase our brand to our franchise partners in the metaverse, giving us greater global reach than ever before.” The company also has plans to launch its first virtual restaurant later this year.

“Will we be selling virtual franchises of Pickl soon? Never say never — with virtual land prices rising and more opportunities opening up the different worlds in the Metaverse, the most profitable Pickls of the future could soon be virtual,” said chief licensing officer Ashley Griffiths. Since its launch in JLT in 2019, the brand has opened a store in Dubai’s Time Out Market, launched a concept store An/Other by Pickl in City Walk, which pays tribute to the history of burgers and opened two restaurants in Abu Dhabi. Later this year, it plans to expand to other parts of the GCC. Source: The National (https://bit.ly/3qPaqWk)

Dubai Reveals Plan to Create Futuristic City in Metaverse “One Human Reality is the meeting point or integration between two worlds: the metaverse and the world we are currently living in together,” he said at a session titled ‘Operating Cities of Tomorrow’.

Dubai Municipality has announced that it will work with private sector companies and investors to create a futuristic, humancentred version of the city that capitalises on opportunities thrown up by the metaverse. Dawood Abdul Rahman Al Hajri, Dubai Municipality Director General, introduced the One Human Reality concept to delegates during a plenary on Tuesday at the World Government Summit 2022 (WGS2022), at Expo 2020 Dubai.

The metaverse is a virtualreality space where users interact with computergenerated environments and other users. At its broadest, it combines elements of social media, augmented reality, virtual reality, video games, cryptocurrencies, and other advanced technologies. As the next big market opportunity, the metaverse could provide nearly $800 billion in revenue by 2024, Bloomberg Intelligence estimates show. “The metaverse today has become closer to reality than we could have imagined,” H.E. said.

Offering examples of how such a city might work. Residents could be joined by friends in other parts of the world in the form of avatars on a virtual walk through a city park. Similarly, simulated time travel to historic moments or immersive tours of landmark destinations may be other metaverse applications. Such futuristic use cases would require portals in public spaces and city centres, he said, adding that governments and cities should invest in building this infrastructure as soon as possible. Dubai Municipality will soon launch a programme called One Human Reality Talks, aimed at bringing together companies and investors to develop and share this new reality. It will include dialogues with experts, insights, cooperative use cases, knowledge sharing, and more. “Cities benefit from integrating big data. With the help of the Internet of Things (IOT) and artificial intelligence, city leaders will be able to build a digital infrastructure enabling us to access this world in a new way,” Al Hajri said. Source: Khaleej Times (https://bit.ly/36xWo4Q)

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Apparel Group Expands Qatar Footprint with Launch of 20 Stores at Place Vendôme Mall in Lusail City Sima Ganwani Ved, the Founder and Chairwoman of Apparel Group, who was featured in Arabian Business’ Indian Power List 2022, said: “The retail landscape in Qatar has evolved significantly over the last few years, as customers become increasingly discerning and attentive to global shopping trends while staying true to their roots and culture.

Global fashion and lifestyle retail conglomerate Apparel Group has expanded its footprint in Qatar, with the launch of 20 stores at the Place Vendome Mall in Lusail City.

“Continuing Apparel Group’s commitment to providing an elevated shopping experience to our loyal customers, we are proud to be partnering up with Place Vendôme and further expanding our strong retail footprint in the Qatar market.”

The 20 new stores include Charles & Keith, Beverly Hills Polo Club, Rituals, LC Waikiki, Birkenstock, Molten Chocolate & Café, Skechers, R&B, R&B Kids, BBZ, Hema, Crocs, Dune London, Levis, Aldo, Inglot, Aldo Accessories, Athlete’s Co, and Calvin Klein Underwear. Tim Hortons is already operating at the new location.

Apparel Group’s LC Waikiki store will be the largest in the GCC region, spanning a total floor area of 28,000 square feet. Additionally, the global fashion and lifestyle retail conglomerate will be opening a Rituals flagship store along with R&B Kids and Calvin Klein underwear stores for the first time in Qatar.

Ved added: “Our brands’ expansion with Place Vendôme is in line with our strategy of being responsive to consumer demand. Qatar continues to be a strategic market for us and we are proud to be part of the country’s growth.” Apparel Group offers an enhanced shopping experience, that brings a large variety of carefully selected international and regional labels to a discerning audience. Place Vendôme is a multibillion-dollar mixeduse development in Qatar’s emerging Lusail City. Place Vendôme is a project of United Developers, a group of four Qatari investors who partnered to align their expertise in retail, real estate, construction, and contracting. The 1,150,000 square metre development will host two five-star luxury hotels, Le Royal Meridien and Palais Vendôme, a Luxury Collection Hotel, Le Royal Meridien Residences, a mall featuring up to 580 different retail outlets with an exclusively luxurious wing dedicated to top designer labels, and a central entertainment component showcasing constant attractions. The hotels and residences will be operated by Marriott International, which is set to deliver a luxurious and authentic experience that aligns with the Place Vendôme brand. Source: Arabian Business (https://bit.ly/3w9rYOK)

Damac Group Eyes Move Into the Metaverse with $100 Million Investment in “Digital Cities” Led by Ali Sajwani “As well as updating our systems, processes and operations across departments, we have been investing in building a strong team of skilled and talented experts to help support our ambitions of being a digital leader.” Since last year, the group’s real estate arm, Damac Properties has been offering home buyers a 3D virtual experience that utilises virtual reality (VR) and augmented reality (AR) technology.

Ali Sajwani, General Manager of Operations at Damac Properties

UAE-based property giant Damac Group is investing $100 million to build digital cities in the metaverse as virtual and physical worlds continue to collide.

non-fungible tokens (NFT), and Ali Sajwani is tasked with delivering the organisation’s goal to be a leading global digital brand, a Damac statement said.

Damac General Manager Ali Sajwani will head the new initiative, named D-Labs.

“Over the past two years we have been aggressively driving our digitisation efforts, and this new initiative into the metaverse will only further leverage our digital footprint,” Sajwani said.

The initiative forms part of the company-wide ambitions to move into digital assets and

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On Monday, Dubai-based real estate broker Union Square House said it would launch metaverse mansions this year. USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins. According to recent market data, real estate sales in the metaverse reached $500 million in 2021, and the sales volume is expected to double in 2022. The metaverse real estate market is projected to grow at a CAGR of 31 percent from 2022 to 2028. Source: Arabian Business (https://bit.ly/38SwXM6)

Oman’s First Ikea Store to Open on This Date

Swedish home furnishings giant IKEA, has announced the opening of its first store in Oman in June 2022. Spanning 25,000 square metres, the two-level flagship is set to launch in Lulu Group’s Oman Avenues Mall. Bringing customers affordability and a comfortable shopping experience, the new IKEA will be located in the centre of the city making it more accessible for many people. It will feature inspirational room setups and creative solutions for visitors with over 9000 articles across Living Room, Bedroom, Kitchen, Bathroom, and other home furnishing accessories. Leveraging digital innovation, Oman’s first IKEA store will also be available virtually, making it easier for shoppers to browse and buy the latest products. Read More…

LuLu Hypermarket Joins Talabat

Talabat, a leading technology company in food delivery and express trade, announced the inclusion of LuLu Hypermarket on its platform. LuLu Hypermarket is considered one of the favourite markets of Bahraini consumers, for the availability of a wide variety of groceries products manufactured locally and abroad. Talabat allows LuLu customers to browse the application from home, choose groceries and have them delivered to them. “The LuLu Group is always at the forefront of making the retail experience enjoyable, affordable, and valuable in terms of quality to our shoppers. This partnership with Talabat opens yet another access to our retail presence in Bahrain, while also strengthening our omnichannel approach for e-commerce,” said LuLu Group Director, Juzer Rupawala. Read More…Source: The Daily Tribune News of

(Source: Times of Oman (https://bit.ly/3vJuU5J)

Bahrain (https://bit.ly/3w8U7pg)

Macy’s to open $584M Fulfillment Center

Uniqlo to Ramp Up Store Expansion in North America

The $584 million projects is part of the retailer’s wider push to grow its e-commerce operational capacity. In February, the company announced plans to move and expand its Houston distribution centre into a 1-million-square-foot facility in Tomball, Texas. Macy’s is also investing in new automation technology for its Portland, Tennessee, and Martinsburg, West Virginia, distribution centres to better support its digital business, according to the press release. “This stateof-the-art facility is a significant milestone for Macy’s, Inc. as we invest in strengthening our omnichannel ecosystem,” Dennis Mullahy, Chief Supply Chain Officer of Macy’s, said in a statement. “It will support the growth of our business as a leading omnichannel retailer.” Source: Retail Dive (Read More: https://bit.ly/3uh4lEo)

Japan’s Fast Retailing Co. is looking to expand its footprint more aggressively in North America. On the heels of strong first-quarter results, the parent company of Uniqlo said it plans to step up expansion, opening about 400 to 500 stores annually around the globe. A big focus of its expansion will be North America, where the company is targeting 30 new Uniqlo stores annually. It plans to expand Uniqlo’s North American footprint to 200 locations in five years, up from its current total of 43 in the U.S. and 14 in Canada. For the six months ended Feb. 28, Fast Retailing’s net profit rose 38.7%, to $1.17 billion. Read More… Source: Chain Store Age (https://bit.ly/3KMyYXn)

Spinneys Opens a New Store in Nasr City

Spinneys continues to expand in Egypt with its latest opening of a new store in Nasr City on 30 April. The store is located in Abdel Hamid Lotfy street next to “El Serag Mall’. The opening marks an important milestone for the company as it continues its expansion drive across the country through 2022. “This is our first store in the Nasr City area and it reflects our ongoing commitment to the Egyptian market despite the global health and economic challenges,” Spinneys CEO Mohanad Adly, said. “This marks the second store opening this year after the successful launch of our Zahraa El Maadi store earlier in February. We want to introduce Spinneys to as many Egyptian consumers as we possibly can, and we will be looking at locations not just in Cairo, but across various other main cities as well.” Read More…Source: The Egypt Toda (https://bit.ly/3Fqwz3t)

Home Depot Launches Venture Capital Fund

The Home Depot is on the lookout for emerging technologies. The home improvement giant has launched a $150 million venture capital fund to identify, invest in and partner with emerging tech companies focused on improving the customer experience and shaping the future of home improvement. The new Home Depot Ventures fund aims to invest in companies that “advance The Home Depot’s ability to provide a seamless interconnected shopping experience, develop new and differentiated capabilities,” the company said. “With Home Depot Ventures, we’re lending our support and expertise to enable rapid scale of innovation,” said Richard McPhail, executive VP and CFO of The Home Depot. “This is an exciting opportunity to find and scale the next big ideas in technology and retail.” Read More…Source: Chain Store Age (https://bit.ly/3OYyh0k)

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RETAIL PEOPLE MAGAZINE ISSUE 31 - THE EVOLVING FACE OF CUSTOMER EXPERIENCE

Articles inside

Oman’s First Ikea Store to Open on This Date

Pickl is the First UAE Restaurant to Enter the Metaverse

Al Hokair Group Selected As Exclusive Agent for Brass Monkey in KSA

Apparel Group Expands Qatar Footprint with Launch of 20 Stores at Place Vendôme Mall in Lusail City

Retail in Qatar Leaps Forward

Retail Leasing in Mixed-Use Developments

The Evolution of Mixed-Use Developments to Promote Experience and Connection

The Mixed-Use Community Living

The Future of Fashion Buying

The Future of Retail Market in Egypt

Post Pandemic Observations

The Ups and Downs But Growing Path of E-Commerce In Iran

Retail Tourism in the Kingdom of Saudi Arabia: The Past, The Present & The Future

Oman Retail Industry Market Insights and Growth Forecasts

A Local Appetite for International Luxury Retail

Qatar: On Upward Growth Curve

Top Retail Trends in the Middle East Region

The Evolving Face of Customer Experience

Bridging Worlds: Ensuring Seamless Digital Integration for Optimal Customer Experience

SAHARA CENTRE Celebrates 20 Years of a Contemporary Shopping Experience

What Does the Fintech Revolution Mean for Shopping Mall Gift Cards?

What Can the Metaverse Do for Retail?

SOUQ7 An Exciting Experience is Underway

How Shopping Malls Can Improve Sales Through Marketing