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Retail Innovation in the Middle East! ! RETAIL INNOVATION IN THE MIDDLE EAST! ! SANDEEP SALIGRAM, GENERAL MANAGER - RETAIL PROJECTS Presentation Overview The Middle East GCC Review Retail Transformation Focus on Dubai Tipping Point of Retail Landmark Group Overview Case Studies – Splash, Max, Home Centre and Oasis Centre Retail Road Ahead Discussion and Q&A Middle East Retail Transformation OLD SOUK FORMAT • The Middle East market is moving from being oil and natural gas-centric to other industries. • Retail is one of the fastest growing industries in the region. • Middle East Countries - • The Middle East is the tenth largest luxury goods market with sales exceeding $7.69bn DUBAI MALL • Current Retail GLA expected to grow by 20% by 2020 • GDP Growth Rate in the region - 3.6% • Per Capita Income $ 20,232 • However, this view is skewed . The Middle East market is divided in two parts, the developed GCC markets, and the rest of the ME countries where political and economical instability still prevail. GCC Center of Growth MALL OF THE WORLD" • Saudi Arabia, United Arab Emirates, Kuwait and Qatar dominate growth and have ambitious plans post recession. MALL OF QATAR" • 2014 Global Retail Development Index – highlight these 4 countries amongst the top 30. • Bahrain and Oman also continue to grow steadily • GCC Retail GLA area to grow by 40% • Key Infrastructure projects by 2020. Qatar Airport New Metro Systems in all GCC countries • Infrastructure spends by GCC wide rail network governments in the GCC has increased by 80% Dubai - The Tipping Point • Dubai Retail Sales to grow at an estimated $41 Billion by 2015 • Mall of the World – 8 Million Sq. Ft. • Dubai Tourism Figures – More than 11 million visitors in 2013 • Half – yearly figures for 2014 already show a 11% increase • Half – yearly hotel and hotel apartment operator revenue raised by 18.6 % • Dubai Current Retail Space - 86 Million Sq. Ft. Dubai Calendar •Dubai Government to leverage retail and events sectors as key drivers of tourism growth •Dubai Summer Surprises 2014 generated 400 million in a mere 2 weeks •Growing visitors from across the Middle East visiting Dubai •Dubai Shopping Festival – More than 70 Malls Participating, 6,000 retail outlets offered promotions. The festival attracted over 4 Million Visitors who spent USD 3 Billion Dubai Calendar Company Profile Landmark Group Strengths • Landmark Group was established in 1973 with our first store in Bahrain - Mothercare • Led by the Group’s visionary Chairperson – Micky Jagtiani and Vice – Chairperson – Renuka Jagtiani • In 1992 the Group shifted its Headquarters to Dubai, UAE • Core belief – Build large format stores, to offer variety of choice in merchandise at exceptional prices • Statement of purpose – Creating exceptional value for all lives we touch. Landmark Group Strengths • Today the Landmark Group is the leading Retail and Hospitality Conglomerate in Middle East, North Africa and India • 40 years of retail experience • Operates over 25 own brands and 40 international franchise brands • Large and diversified retail formats with anchor stores in major malls • Formidable and extensive customer loyalty program with over 9.5 million members • Over 50,000 Employees Our Presence 1800 Stores 20 Countries 23 Mln. Sq. Ft. Retail Area 9 Mln. Customers Yearly SRI LANKA Property Portfolio The Group has a strong property and real estate portfolio with presence in key malls and locations across the countries it operates in. Muscat City Centre, Mall of the Emirates, Mirdif City Centre, Oman Dubai Dubai Total GLA= 651,050 Total GLA2 ,513,038 Sq. Total GLA2 ,109,744 Sq. Landmark Group = = Landmark Ft. Group = Landmark Ft. Group Sq. Ft. Area 28 %180,000 Sq. Area = 172,0007 % Sq. Ft. Area = Ft. 352,270 Sq. 17% Avenues Mall, Dubai Mall, Riyadh Gallery , Saudi Kuwait Dubai Arabia Total GLA = 2,815,860 Total GLA = Total GLA = 117,826 LandmarkSq. Ft. Group Area = 185,000Landmark Group Area = Landmark Group Area = 3,770,026 Sq. Ft. Sq. Ft. Sq. Ft.7 % 3 19 % 125,000 Sq. Ft. 22,800 Sq. Ft. % Customer Loyalty Programs It is the biggest, most successful retail customer loyalty program in the Middle East. RE-­­ MEMBERS BRANDS LAUNCHED 2010 4.5M 45 An exclusive customer loyalty program offered by the LAUNCHED MEMBERS BRANDS Landmark Group in India. million OWN BRANDS PORTFOLIO 2001 5M 11 FRANCHISE BRANDS Fashion Brands Fashion Brands Fashion Brands Sports and Electronic Brands Home Brands LandmarkShops.com offers customers a better online shopping experience. Starting in the UAE with Babyshop, Splash and Emax, LandmarkShops.com will continue to progressively expand to include all of the Group’s concepts, markets, 2012 and more. ESTABLISHED BRANDS COUNTRIES 3 1 Leisure, Wellness & Hotels Own Franchise Joint Venture Food Beverage& FEC & Confectionary Brands Health and Well Being Brands Hotel and Food Brands Case - Studies Splash Key Facts COUNTRIES RETAIL SPACE ESTABLISHED STORES 1993 263 A young, high street fashion brand offering the latest trends in apparel 2.4 and accessories for men, women and . Million sq. 14 . teens. =Million sq. = * sq. =. Million sq. = Includes details for Splash brands stores Brand Transformation Splash First Store 1993 Splash Current Format Splash 2004 Splash Current Format Splash Current Format Splash Current Format Max Key Facts ESTABLISHED 2004 266 STORES The largest value fashion brand in the Middle East, retailing apparel for men, COUNTRIES RETAIL SPACE women and children along with footwear, accessories, cosmetics and . 16 4.9 Million sq. household products. = Brand Transformation CHALLANGES • Lack of Fashion inspiration and freshness • Stores lacked personality or identity • Presentation is too unified and rigid • Department and Categories needed to reflect merchandise • One size fits solutions store lacked inspiration and focus • Store lacked visual focal points to help in presentations and way finding • Key anchor areas needed to be established to highlight fashions and collections DIRECTION FORWARD MAX IS NOT A SEA OF CLOTHING RACKS BUT RATHER A COLLECTION OF FASHION POSSIBILITIES Provide opportunities for inspiration, freshness and fashion Create hierarchy of organization, messaging and merchandising Provide clear and intuitive customer shopping experience Create a system of presentation that has both impact and style Inspiration for personal expression across every corner Maintain brand position of fashion, great value and service DESIGN ATTRIBUTES Exciting Clear Visual Flexible Fashionable Simple Collections Current Inviting Clean Highlight Changing Inspiring Balanced Surprise Stylish DEFINING ELEMENTS Exciting | Clear | Highlight | Stylish Design Direction Creating Environments that excite and express a keen sense of fashion and yet be accessible Inspire The Entry Announce Bold Visual Anchors Explore Clear Circulation Engage Exciting Merchandise Displays Max New Format – The Entry Max New Format – Department Design Max New Format – Department Design Max New Format – Visual Merchandising Home Centre Key Facts ESTABLISHED STORES 1995 70 A leading retailer of RETAIL furniture and home COUNTRIES 3.3 SPACE Million sq. =. furnishings in the Middle East, 10 offering outstanding value and an exceptional customer experience by consistently fulfilling the key brand promise of ‘Find Your Home in Ours’. Brand Transformation DIRECTION FORWARD DESIGN ATTRIBUTES DEFINING ATTRIBUTES Home Centre New Format Home Centre New Format Home Centre New Format Home Centre New Format – Interiors Home Centre New Format – Interiors Oasis Centre Oasis Center – First Format Oasis Centre – Redesign - 1 Oasis Centre – Redesign - 1 Oasis Centre – Redesign - 2 Oasis Centre – Redesign - 2 Retail Road Ahead Thank You .
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