Storebites Q4 2009

ContentsContentsContentsContents� Executive Summary� Shopper behavior in the news� Industry news� Best in store� HFS – High Frequency Stores� Mall of the Emirates� Hypermarkets

� Lulu Hypermarket � Geant� Panda� Panda� Carrefour� City Center� Union Coop

� Gas Stations� Eppco & Enoc� Emarat� Meed

� Pharmacies� Boots

Executive SummaryExecutive SummaryExecutive SummaryExecutive Summary

Welcome to the second issue of Storebites, closing out 2009. As you will see throughout the report, brands from every category have been investing much more in retail, and competition is fierce. Some may think that this practice is a reflection of budget cuts or pressure to close the deal, but it seems this trend is here to stay.

We’re seeing more campaigns being rolled out at multiple touch points in the same store, and better and smarter communication tailored to shopper needs.

The practice has become so popular that brands, such as Twix, are already looking to break from the clutter within the store to get shoppers’ attention on their way, as they enter it.

Both retailers and brands are seeing the benefit in giving shoppers an experience, more information or a small incentive to prompt a purchase. Carrefour broke from its per square meter ROI model and set up a videogame hang out area for teenage boys 2 weeks before Christmas, and as some our own people will tell you, it was impossible to get a seat!

Overall, we’re glad to say the level of the work we’ve seen has truly improved and we invite all those involved to step up their shopper-based thinking accordingly.

Shopper behavior in the newsShopper behavior in the newsShopper behavior in the newsShopper behavior in the news

Dubai Shopping Festival brings 3.35m visitors to DubaiDubai Shopping Festival brings 3.35m visitors to DubaiDubai Shopping Festival brings 3.35m visitors to DubaiDubai Shopping Festival brings 3.35m visitors to DubaiWhile visitor spending was down 2 percent from 2008 figures due to the slump in consumer confidence, the global economic downturn had minimal impact.Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline and Group, and Chairman of the Dubai Shopping Festival Supreme Committee said, "It just goes to prove the unshakable popularity of DSF, and that Dubai will always be an attractive shopping and tourism destination for tourists."We can attribute these impressive results to the solid collaboration between the public and private sectors in Dubai towards ensuring the success of the event, a key factor that has always been pivotal in the success story of DSF along the years," he said.success story of DSF along the years," he said."The results of DSF 2009 are a testimony that DSF can motivate the retail and tourism sectors in Dubai against all odds."

Gulf News, 4/01/10

Shopper behavior in the newsShopper behavior in the newsShopper behavior in the newsShopper behavior in the news

Arabian Business’ look at consumptionArabian Business’ look at consumptionArabian Business’ look at consumptionArabian Business’ look at consumptionThe Arabian Business Retail Trends Data, published in association with Datamonitor as part of its Recession and Recovery research, shows how consumers in the UAE and Saudi Arabia have changed their shopping habits amid the global credit crunch. The statistics, which start in May and update on a monthly basis, show shoppers’ changing behavior related to the following questions:1. How many limit the amount of shopping trips2. How many buy cheaper brands

The monthly sample size is approximately 320 respondents.Arabian Business.com

CitrussCitrussCitrussCitruss TV has seen sales increase 35 percent this yearTV has seen sales increase 35 percent this yearTV has seen sales increase 35 percent this yearTV has seen sales increase 35 percent this yearThe retail industry has suffered in the Middle East, but Citruss TV, which is available in 15 countries across the Middle East, had an “unexpected” increase in its expectations.Twenty percent of retailers have seen a 20-30 percent decrease since the economic crisis, as per a survey published last month. Seventy percent of Citruss TV’s sales came from the channel’s main viewers, who were mostly Saudi based Arabic speaking women.

Arabian Business, 13/10/09

Industry news

Saudi Saudi Saudi Saudi SavolaSavolaSavolaSavola finally completes finally completes finally completes finally completes GeantGeantGeantGeant purchase dealpurchase dealpurchase dealpurchase dealSavola had increased their initial offer by 10.6 percent to the equivalent of 486.6 million riyals in cash.The acquisition will enable Savola's retail business to raise its share of the Saudi retail market to 8 percent from 7 percent and would increase its turnover by 13 percent. Savola said they hope that within five years al-Azizia Panda would take a 10 percent share of the 96 billion riyals generated in annual sales by the Saudi retail market.


Health and beauty retailers show flexibility Health and beauty retailers show flexibility Health and beauty retailers show flexibility Health and beauty retailers show flexibility Specialist health and beauty chains seem not to have been as badly affected by the recession as other industries. The Body Shop and Sephora have both implemented certain strategies in order to overcome the current economic difficulties. The Body Shop has restructured itself, and Sephora has decided to grow in the male grooming sector.

Retail Planet, 25/08/09

Top 20 Africa and the Middle EastTop 20 Africa and the Middle EastTop 20 Africa and the Middle EastTop 20 Africa and the Middle EastSince the autumn of 2008, retailers in the Africa and Middle East region (AME) have been progressing swiftly and have shown signs of growth despite the downturn. Stores such as Waitrose, Panda, EMKE and Carrefour are expanding within the AME region and Carrefour has moved up from sixth to fourth place in the top retailers chart of 2008.

Retail planet, 01/09/09

Industry news

DamasDamasDamasDamas losslosslossloss----making subsidiary to be liquidatedmaking subsidiary to be liquidatedmaking subsidiary to be liquidatedmaking subsidiary to be liquidatedDamas International announced that it had appointed a liquidator for their loss making Italian-based subsidiary and a voluntary winding up petition would be filed with courts in Milan. A statement said the subsidiary accounted for less than two percent of the total revenues of Damas International Limited in the year 2008-2009.


UAE electronics market expected to grow by $1bn by 2013UAE electronics market expected to grow by $1bn by 2013UAE electronics market expected to grow by $1bn by 2013UAE electronics market expected to grow by $1bn by 2013Demand for electronic products in the UAE have held up this year with the market expected to be worth $3.9bn by 2013, it is now estimated to be valued at approximately $2.9bn in 2008. The Dubai Chamber of Commerce & Industry, said increased demand would be driven by popularity of 3G mobile handsets, smart-phones, notebooks and big screen LCDs. The report added that “…manufacturers have contributed in keeping prices in Dubai about 15-20 percent lower than other markets in the region“.It also says that buyers prefer the international brands due to the “prestige and security”.


Industry news

PlaystationPlaystationPlaystationPlaystation Store opens in Saudi ArabiaStore opens in Saudi ArabiaStore opens in Saudi ArabiaStore opens in Saudi ArabiaAl Faisaliah Group Holding, Saudi Arabia's sole distributor of Sony products, has announced the opening of the first PlayStation Store in the Middle East in the Saudi capital, Riyadh. With over 75% market share in the gaming sector across the Kingdom, the new store will offer the entire range of PlayStation network content for PSP and

Saudi new car sales seen rising 50% by 2013Saudi new car sales seen rising 50% by 2013Saudi new car sales seen rising 50% by 2013Saudi new car sales seen rising 50% by 2013According to Business Motor International, there is a good chance the auto sector will improve.While the UAE, Kuwait and Bahrain are expected to show declines in 2009, growth in the Saudieconomy, along with liquidity injections and less dependence on sales to expats, should see itscar sales market grow by more than 2 percent this year, the report added. Overall it is expected that by end-2013, sales should be up by nearly 50 percent compared with2008 levels.


Italian jewellery a great hit among Saudis Italian jewellery a great hit among Saudis Italian jewellery a great hit among Saudis Italian jewellery a great hit among Saudis The Kingdom of Saudi Arabia has shown a preference for the beautiful designs of gold Italian jewellery, compared with their cheaper competitors, despite the fall out of the world economic slowdown. Saudi Arabians prefer the intricate design of Italian jewellery and its constant upkeep with gold fashion.


sector across the Kingdom, the new store will offer the entire range of PlayStation network content for PSP and PlayStation 3, along with gaming accessories and solutions.

AMEinfo, 12/11/09

Industry news

Tom Ford to expand personal luxury brand in Middle East Tom Ford to expand personal luxury brand in Middle East Tom Ford to expand personal luxury brand in Middle East Tom Ford to expand personal luxury brand in Middle East With a store already launched in Dubai, Tom Ford, former Gucci fashion designer, plans to expand his own “Tom Ford” flagship store in Qatar and Bahrain, and he already has his eyes on Riyadh.Ford, who already stocks a range of “dishdashas” (a traditional form of male Arab dress) in the GCC region, said his brand has managed to withstand the economic downturn better than other luxury retailers as his customers are more “insulated”.


Cairo Festival Cairo Festival Cairo Festival Cairo Festival City City City City creates new opportunities for the retail industrycreates new opportunities for the retail industrycreates new opportunities for the retail industrycreates new opportunities for the retail industryExpected to open in early 2012, Festival Centre will offer more than 160,000 sq m, gross leasable area, of retail space contributing to the fast paced growth of the Egyptian retail market and its economy.Cairo Festival City's General Manager Mohamed ElMikawi, said:"… our retail experience is expected to create over 5 000 new jobs, and we hope to contribute to the development of "… our retail experience is expected to create over 5 000 new jobs, and we hope to contribute to the development of Egypt's economy."Cairo Festival City will be hosting local Egyptian brands as well as their own Al Futtaim brands, which will be the first to open in Egypt as well as other new international brands which are new to the Egyptian market.

AME Info, 17/10/09Carrefour Turkey plans expansionCarrefour Turkey plans expansionCarrefour Turkey plans expansionCarrefour Turkey plans expansionCarrefour Turkey, a joint venture between the French retailer and Sabanci holding is targeting the creation of 7,000 jobs within three years and creating 1,352 jobs in the first half. The partnership plans to open 60 more stores by the end of the year after opening 29 in the first half. At the end of 2008, the partnership operated 760 outlets, including 613 Dia discount stores, 125 Carrefour Express and 22 Carrefour hypermarkets.

Retail Planet, 24/07/09

Industry news

Global retail theft increasesGlobal retail theft increasesGlobal retail theft increasesGlobal retail theft increasesAccording to a recently published study from the British Centre for Retail Research, the level of shrinkage in the global retail industry reached USD114.8 billion in 2009, representing a significant increase of 5.9% over last year’s total of USD104.5 billion. Theft protection technology vendor Checkpoint Systems, found that the rise in shrink was greatest in North America (+8.1%) and Middle East/Africa (+7.5%). In Europe, the rise of theft was also significant (+4.7%).

Retail Planet, 30/11/09SAINSBURY’S to buy 50 more electric vansSAINSBURY’S to buy 50 more electric vansSAINSBURY’S to buy 50 more electric vansSAINSBURY’S to buy 50 more electric vans

UK retailer Sainsbury’s is updating the online grocery delivery service by buying 50 more electric vans, making it own the world’s biggest fleet of electric vehicles. The retailer, which already has 20 electric vans, said the new vehicles would be deployed in Central London,

Retail Planet 4/12/2009

already has 20 electric vans, said the new vehicles would be deployed in Central London, meaning that 60% of its home shopping customers in the city centre would be served by eco-friendly vans. Each van is restricted to 40mph and has a range of 60 miles per day.

Industry news

WalmartWalmartWalmartWalmart Sustainability IndexSustainability IndexSustainability IndexSustainability IndexWalmart has announced lofty plans to create a single source of data for evaluating the sustainability of products. Ultimately, the index will provide transparency into the sustainable qualities of all of its products. This is a great way to eradicate greenwashing.

The index will be implemented in three phases, according to the company release. First, survey questions will be sent to its suppliers, focusing on energy, material efficiency, natural resources and more. Second, a consortium of universities will help lead a global database on the lifecycle of products. Walmart provided initial funding for the consortium. The University of Arkansas and Arizona State will provide scientific research, while professors at Duke, Harvard and others are expected to plan the index. professors at Duke, Harvard and others are expected to plan the index. Third, translate the product information into a simple rating system that shoppers can see and understand in stores. An article in The Wall Street Journal said an environmental labeling system, similar to a nutritional label, will be added to products. It could take five years or longer to implement the system.

this week in Shopper Marketing, 27/07/09

Industry news

100 new 100 new 100 new 100 new flavoursflavoursflavoursflavours in new Cocain new Cocain new Cocain new Coca----Cola soda machineCola soda machineCola soda machineCola soda machineDeveloped on the assumption that there's no such thing as too much choice, Coca-Cola Freestyle is a new self-serve soda fountain that can dispense up to 100 different drink flavours. The machine is being tested this summer at fastfood restaurants in California and Atlanta, with the intention of rolling out units across the US early next year.Flavoured teas, waters, juices and soft drinks will all be available from Coca-Cola Freestyle, letting customers select drinks based on brand, calorie content or caffeine levels, all through the system's touchscreen interface. Combinations will be pre-set, meaning Raspberry Coke and Peach Fanta are available on tap, but frat dares combining tea and Sprite won't be possible. Many of the flavours on offer are new to the US market.

www.springwise.com, 28/07/09

Best inBest inBest inBest in----store this store this store this store this quarterquarterquarterquarter

Head & Shoulders beat out some serious competition from Lulu Shine like

.

Head & Shoulders beat out some serious competition from Lulu Shine like a Star and some top contenders in Saudi. This initiative had the edge because not only were the main stops along the shopper journey covered, but each was well thought out.

The communication tackled main issues shoppers may face as a barrier to purchase. The POSM was placed to truly highlight the products and the shopper was never left hanging.

HFSHHHHigh FFFFrequency SSSStores

(UAE)

All HFS visited had significantly well organized merchandising. This helped navigation and made products easy to locate and retrieve.

Chips display placed directly next to counter, making it easy and convenient to pick up (impulse purchase).

Significant increase in use of shelf strips, drawing attention towards the products displayed.

Dunhill has significantly improved their product placement/visibility.

Attractive shelf strips Attractive shelf strips help in drawing attention towards the products.

(UAE)

LOOK AT ALL THE LOOK AT ALL THE LOOK AT ALL THE LOOK AT ALL THE ANGLES:ANGLES:ANGLES:ANGLES:

Even on the reverse, the stand hosted Oral B and Crest branding,

which was visible to shoppers coming up

the escalator.

LOCATION... LOCATION!LOCATION... LOCATION!LOCATION... LOCATION!LOCATION... LOCATION!P&G setup shop convenientlylocated between the Cinema andthe food court, guaranteeingmaximum footfall and enticingcustomers with a free sample inthis simple, yet attractive stand.

(UAE)

With the support of P&G, Lulu threw a beauty event named ‘Shine like a Star’ ‘Shine like a Star’ ‘Shine like a Star’ ‘Shine like a Star’ that was communicated from the parking lot all the way to the promotional aisle.

Shoppers were given the opportunity tohave their picture taken in the store by aprofessional photographer, which was inturn juxtaposed onto the cover of amagazine, alongside renowned celebrityKatrina Kaif.

(UAE)(UAE)

Knorr had a bilingual palette wrapper on its display communicating 20% off along with the free recipe booklet. However, Knorr’s display is shared with Lipton, which can get a bit confusing.

Tang’s Ramadan special edition packaging on both flavors orange & mango was very attention grabbing,colorful and colorful and incorporated Ramadan elements.

This display stood out in terms of its look and feel, since we directly associate it with a Ramadan tent. It had a stack of different date brands.

Away from all the clutter, Pringles stood out with its gondola-end Ramadan branding, especially with its flashy red color that can be spotted from miles away.

Royal’s shelf talkers stood out due to the appetizing desserts. The back translation of the communication message is “Royal is with us and brings us together during Ramadan”.

Kiri’s value packs stood out in the cheese fridges because it was the only Ramadan value pack. Even though the value packs were placed at a low eye level, the red color manages to grab attention because of the contrast.

Tefal’s display was very simple, but had an overall warm, Ramadan look and feel. All the cooking tools needed were packaged in value packs, at an irresistible cost!

(KSA)

Twix branded the escalator side panels and the points of entry at Panda. Very eye catching and appealing and more importantly it ensured that everyone coming into Panda had enough time to take in the communication.

Doux chicken ran a joint promotion with Panda where shoppers got the chance to win 3 Chevrolet 4x4s with the purchase of certain products.

Fairy’s most recent campaign communicated the power of Fairy to clean your plates using cold water.

To illustrate the point, POSM had a water container with fake ice in it.

Head & Shoulders launched a campaign throughout the shopper journey leveraging recommendation of professionals. Each touchpoint had different and relevant communication; merchandising was impeccable and each and every shopping barrier that could be faced when picking brands was tackled (premium pricing, doubts on functional benefits …).

(UAE)(UAE)

In a push to sell more personal care and beauty products and leverage their expertise, Carrefour made sure to always have prominent brands with eye catching stands within the beauty section. Each was manned

Olay Gillette

Vaseline

beauty section. Each was manned with a promoter and allowed for good visibility and off-take.

Nivea

L’Oreal

Pantene

Oral B and Crest Promoter within the aisle to give shoppers that ‘Expert’ advice.

Barbie re-created a Barbieland zone in the weeks before Christmas with a designated play with a designated play area for children.

Carrefour hosted an entire video game platform with game simulators, themed stands and bean bags to try out consoles.

(Kuwait)(Kuwait)

Comfort got an open location and made sure to make their products as accessible as possible to shoppers passing by.

Nestle used fresh and vibrant colors to promote its health lines, but the cluttered environment did not create a very inviting stand.

(Kuwait)(Kuwait)

Always a challenge, Schick managed to get men’s attention by using racing red to promote its new razor.

The national celebration “Gergian” (Gulf version of

Halloween) was especially promoted with a corner on its

own offering bite sized chocolates and sweets.

Lindt and Jewels chocolates got right into the Christmas spirit with holiday themed stands.

Sensodyne played up its clinical approach with a clean and organized display.

Herbal Essences took up the center of the store, using hanging to grab shoppers’ attention. The stands were a bit underwhelming however considering the excitement built.

(UAE)

Duracell took an innovative approach, by being available at virtually every aisle end, as opposed to getting one display area.

DCL instant yeast gave away free cookbooks on their units. They were not region relevant and did not mention Ramadan at all.

Al Marai prompted more Ramadan sales by creating an easy-to-carry family pack.

and

(UAE)

BAT got great visibility by branding the entire KENT cash area black and got a entire KENT cash area black and got a good location to showcase its Dunhill packs.

The focus this quarter at ENOC EPPCO was junk food! The stations were packed with stands filled to the brim with candy and chocolates capitalizing on the need to stop for a snack.

The latest addition to the coffee counter was cinnamon rolls from Cinnabon.

(UAE)

Running a promotion between Etisalatrecharge cards and their café “Bakeria” , Emarat encouraged people to come back to the station and eat by giving them 100 AED gift voucher.them 100 AED gift voucher.

Tent cards communicating this promotion were placed in the station and on high tables.

Masafi had promo packs displayed at the entrance of the store, making this deal hard to miss!

Featured at the front door in the promotions section, Red Bull communicated their new large size cans.

(KSA)

Since the weather in Saudi Arabia is relatively hot all year round, Almarai is using plastic transparent sheets to cover their fridges and preserve as much cold air as possible to keep their products chilled.

(UAE)

Expert PromotionExpert PromotionExpert PromotionExpert Promotion: Boots uses a wrap stating “whatever your health question, ask your Boots Pharmacist”. Directly above the poster is the Pharmacist recommended product, Strepsils, Benefiber, etc. This instills consumer confidence in the product and ultimately drives sales up.

Bundle Deal: Bundle Deal: Bundle Deal: Bundle Deal: Positioned conveniently between two aisles. The gift bundle contains a combination of multiple items which are available individually on the aisles, but with a twist. Overall reduced rate and a complimentary basket.

For any enquiries, please contact any member of the team.

Documents

Storebites Q4 2009