Content

Executive Summary

Shopper behavior in the news

Industry news

Best in store

Hypermarkets Lulu Hypermarket

Panda

Carrefour

City Center

Union Coop

Gas Stations Eppco & Enoc

Emarat

Pharmacies Boots

Executive Summary

The third quarter of 2010 gave us more quantity than quality of retail work, with most

POSM being made of corrugated sheets and only very temporary. It was also a story of

the usual suspects being present in typical places.

The one bright spot, actually an extremely bright spot, was the work we saw for Fairy. It

truly showed out of the box thinking for retail, hopefully inspiring us to deliver such work

in the future.

Other notable work was the floor sticker for Coca Cola, which was very eye catching

and effective in stopping people in their tracks.

Overall you could say it was a quarter filled with activity but with less innovation and

creativity than we‟d like. Here‟s hoping we see a big bang in the last quarter as retailers

push to get shoppers to spend as much as possible before travelling abroad.

Shopper behavior in the news

UAE consumers ease back into spending mode - Intelligence unit predicts a decade of growth

Dubai: With the local economy beginning to show signs of recovery, consumers are slowly

returning to their spending habits and expenditure in the UAE will again pick up in the next

few years, reaching Dh627.8 billion in 2020, Euromonitor International told Gulf News.

The provider of global business intelligence projected that between 2010 and 2020,

consumer spending will grow at a "healthy but less-than-robust" compound annual growth

rate (CAGR) of nearly five per cent.

"Part of this growth, at least in the short term, will be the result of UAE consumers releasing

pent-up demand accumulated during the recession and slowly returning, albeit with less

gusto, to their buying ways. For the most part, while expenditure is projected to grow over the

forecast period, it will do so at more subdued rates," a Euromonitor spokesperson told Gulf

News.

Gulf News, (24/10)

Shopper behavior in the news

Shoppers Take a Nonlinear Path to Purchase - Journey is complex and multidirectional

A lingering recession, coupled with consumers‟ rapid adoption of digital tools, has inexorably

altered shopping behavior in categories like groceries, home electronics, apparel and quick-

service restaurants. Consumers engage with a variety of digital platforms as they research

small and large purchases, when they‟re in physical stores and during post-shop activities

such as product reviews and referrals. Further, the path to purchase is increasingly

nonlinear, according to the findings of a global retail study conducted by Microsoft

Advertising and Carat.

The study, conducted in March 2010, examined how the recession has changed shoppers‟

purchasing habits and how different media touchpoints affect consumer shopping behavior,

including the way people learn about, research and discuss their purchase decisions. This

shift has altered the traditional purchase funnel whereby marketers move consumers from

awareness to sales to include digital media. For example, consumers may first learn about a

product based on a tweet from a friend or a post on a social network, then go online via

computer or smartphone to research the product, search for the product and consult product

reviews. Beyond that, offline word-of-mouth and media remain influencers, making for a

complex multimedia experience along the path to purchase.

Emarketer, (20/10)

CHOITHRAMS adds sustainability info to fish labels

Choithrams has become the first supermarket in the UAE to include information on sustainability on

its fish product labels. The group is taking part in the „Choose Wisely‟ awareness campaign, launched

by the Emirates Wildlife Society and the World Wide Fund for Nature and plans to color code and

label fish in red, orange and green categories to encourage customers to consider sustainability when

shopping.

The campaign will begin with 12 of the group‟s 26 outlets and staff have been trained to educate the

public and encourage them to shop for the green varieties. K Subhash, Retail Marketing Manager at

Choithrams said: “It will take a while for this awareness to fully sink in and people can make valuable

buying decisions.

Planet Retail, 27/09/10

PANDA to be 100% owned by Savola

Saudi Arabian food producer Savola announced plans to increase its stake in retail subsidiary Al-

Aziza Panda United to 100%, through a share swap and cash deal. The company, which currently

owns a majority 92% share in Panda, has been gradually increasing its shareholding over the past

months in line with plans to give more focus to the retail sector.

Savola plans to issue 8.71 million new shares to the Alhokair Group and pay SAR20.7 million

(USD5.5 million) in exchange for its 7% stake in Panda. Savola said that the Alhokair deal valued

Aziza Panda United at SAR4.3 billion (USD1.14 billion).

Planet Retail, 27/09/10

Industry news

EMKE Lulu to open six new hypermarkets in UAE

UAE-based Emke Group is to launch its eighth Lulu hypermarket in the UAE by the end of this year

and plans another five stores in the western regions to be opened by the end of 2011. Managing

Director Yusuffali MA said: “We are investing up to AED700 million (USD190.54 million) in setting up

these hypermarkets as the consumer base in the capital is increasing.” Under its „Achieve 100‟

expansion project Emke is targeting 100 stores by the end of 2011, from 83 at present.

Planet Retail, 12/10/10

GALERIES LAFAYETTE to launch gourmet food concept

French department store retailer Galeries Lafayette has had a new gourmet food concept called

Lafayette Gourmet created for a mall in Dubai, Design Week reports. The concept was created by

Cada Design Group which has been working on the project for two years and will formally open on

5 October.

Cada‟s Founder and Director David Anderson said: “We've taken our cue from the way food is run

in Paris, but the concept in Dubai is brand new. It's not physically referencing anything you've seen

before. It wasn't only about collaborating the concept and getting the brief expressed in the look and

feel and materials palette. Philosophically and emotionally, the French take a very different look at

food - it's the centerpiece of life.”

Planet Retail, 04/10/10

Industry news

CASINO Monoprix to open in Lebanon and Syria

Casino-owned Monoprix will be revisiting its collaboration with Lebanese company Admic. Admic

will become a franchisee for the group in Lebanon and Syria. The first store opened in Damascus

and a second will follow in Aleppo at the end of the month. The agreement has been signed for a

period of 10 years and Admic will open Monoprix and Monop‟ outlets. The chain has recently

opened in Tunisia, Andorra and Mauritius and will open in Qatar in 2011.

Planet Retail, 08/10/10

Al Futtaim says UAE retail to grow 5% in 2010

Robert Willett, group CEO of Dubai-based Al-Futtaim Group, has said that consumer spending in the

UAE has picked up in recent months and retail sales will rise at least 5% this year, driven mostly by

furniture and car sales, Reuters has reported. "We're in upper single digits in retail in the UAE this

year, in the range of five per cent plus, and even further ahead in automotive ... Growth is going to be

even better next year," Willett said. "Elements in our retail business, like Ikea or Toyota, are doing

extremely well, as is Marks and Spencer, especially in places outside the UAE, like Kuala Lumpur

and Singapore," he said, adding that their operations in Asia were currently outperforming those in

the UAE.

AME Info, 18/10/2010

Industry news

Subway opens 100th store in UAE

Subway restaurant chain has opened its landmark 100th store in the UAE, 44th in Kuwait and 41st in

Saudi Arabia. Subway has also unveiled plans to add three new stores in Kuwait and two in Saudi

Arabia by the end of 2010. The new milestone will further complement Subway's diverse regional

network, which makes a total of 230 outlets in the region.

AME Info, 18/10/2010

MCDONALD’S rolls out breakfast menu in UAE

US-based hamburger chain McDonald's has introduced a breakfast menu to its restaurants in the

UAE, local press reports. The menu features eggs, coffee, hash browns, fruit bites, hotcakes and

McMuffins and has been rolled out to 37 locations across the country. "The introduction of the

breakfast menu gives these people who are on the go the chance to enjoy a satisfying breakfast

quickly and enables them to kick start their day," said Rafic Fakih, Managing Director of

McDonald's UAE.

Planet Retail, 22/10/10

Industry news

Nestle launches its biggest nutrition and health campaign in the Middle East

As part of its ongoing efforts to promote good nutrition and healthy living, Nestlé Middle East has

launched the “Eat Right Live Well” campaign – a regionwide initiative aimed at empowering families

to make healthier food choices through increased awareness of good nutritional habits and

practices.

The largest initiative of its kind launched by Nestlé in the Middle East yet, “Eat Right Live Well”

kicked off with a major promotional campaign by Nestlé at leading stores and outlets throughout the

UAE, Qatar, Bahrain, Oman, Kuwait, Jordan, Syria and Lebanon. The promotion, under the main

theme, “Win Your Way to Healthy Living”, provides shoppers an opportunity to win valuable prizes

designed to encourage them to embark on a healthy lifestyle - such as diet packages, gym

membership, Nintendo Wii Sports, Polar watches, pedometers, and BMI calculator, among other

items.

BI-ME, 14/11/2010

Industry news

Nesto opens 12th store in UAE

Dubai-based super markets, departmental stores and hypermarkets chain, Nesto Group has

announced the opening of its twelfth store in the country in Jebel Ali, Gulf Today has reported. The

new store is the firm's largest in the country. The retailer also said it plans to open more

hypermarkets in Sharjah, Ajman and Ras Al Khaimah within a year. Nesto outlets are present in

Dubai, Sharjah, Ras al Khaimah, as well as Ajman in UAE, Manama in Bahrain, and in Riyadh as

well as Dammam in Saudi Arabia under different names including 'Ever Fine', 'Al Wafa', 'Carawan',

and 'Nesto'.

AME Info, 28/11/2010

Victoria’s Secret stand alone stores to open in Kuwait and Dubai

Victoria's Secret is set to unveil its first ever stand-alone stores in the Middle East. Owned and

operated by Kuwait's M.H. Alshaya Co, the store is scheduled to open on 30 November in Marina

Mall in Kuwait. The new stores primarily offer Victoria's Secret beauty and branded accessories and

will give customers access to a much wider range from the brand. The opening will be closely

followed by a second store in Dubai's Mirdif City Centre on December 11, 2010.

AME Info, 28/11/2010

Industry news

Best in store

.

Our main struggle, when working with premium priced products, is

demonstrating product superiority.

In the absence of a manned demonstration, and knowing that shoppers may

not always have or take the time to read claims, especially in low

involvement categories such as dish soap, Fairy came in with the best work

we‟ve seen in a long time.

(UAE)

Most notably, Panadol made the

most of the space it paid for,

leveraging floor stickers with

bright and bold colors.

(KSA)

Fairy brought their claim to life where no one

could ignore it. 1 liter of Fairy can clean up to

30,000 plates. The plates on the stand look

like their real plates protruding out of the back

wall.

Brilliant!

Panda brought „back to school‟ to life in store with branding throughout in the

shape of recognizable stationery.

Panda has an interesting claim, saying that SR 10 at their store is not like SR 10

at any other store. They had danglers hanging all over the store with different

display stands showing offers on items for SR 10 (such as the Bario beer in the

picture below). Very cool way of owning value.

(UAE)

Gillette‟s units drove its eau de

toilette‟s shape clearly

differentiating it from other

products, all while keeping

branding clear to not throw

shoppers off too much.

Downy made the most

its stands by using the

entire side to display

their visual. Very

disruptive in such a

cluttered environment.

Despite keeping its stock in

shipping boxes for all to see,

Nestle managed to bring out

the fun and excitement in their

execution for Cookie Crisp.

In line with their

positioning, Carrefour

clearly branded areas

where 1-day-only

incredible offers could be

found.

In an effort to push

candy and costumes,

Carrefour dedicated an

entire part of the store to

Halloween.

BIC made sure to

leverage its bright brand

colors and had a stand

that was hard to miss.

Axe made sure to stand

out by using large

branding and a

disruptive all black

design.

(Kuwait)

This rather impressive Dettol

display had a vivid, luminous

lighting system gave off a

fresh & lively vibe ideal to

push its sanitizing brands.

Aquafresh stood out with a glitzy display and

floor media not to be missed by

shoppers.The display provided an

informative flyer which reinforced their

objective of being teeth professors. The

tagline “What do you want from your

toothbrush?” lured customers into wanting to

know more about specialized toothbrushes

for their various needs.

Twix capitalized with their successful“Pause more see more” tagline and created a

display with diecuts of the “pause” button. The simple but eye catching display stood

out to shoppers and could not be missed.

(UAE)

Downy made the most

of its new packaging,

using it to create

disruptive blocks in

store.

Aquafresh kept consistent with their imagery,

making sure the die-cut on their floor sticker

followed their signature swirl.

Despite a typical shape, Coca

Cola managed to make the most

of their floor sticker. The fact that it

looked like a spill made sure

shoppers noticed it.

and

(UAE)

Red Bull made sure

to leverage their

relationship with F1

in time for the Abu

Dhabi Grand Prix

(UAE)

ature Valley made sure it was visible and easy to grab one of their bars when

walking from one aisle to another.

Clearly a sign of the value of every square centimeter in the

convenience shop, brands have resorted to branding in the little space

between fridges.

(UAE)

The „17‟ managed to

grab shoppers‟

attention as soon as

they entered the shop

with a stand placed at

the entrance with

unique design branded

throughout.

For any enquiries,

please contact any member of the team.