Retailers post double-digit growth

Upbeat on growing trend in 2016 despite current global economic situation.

Dubai: Retail sector managed to achieve revenue growth targets in 2015 and also look optimistic for 2016 to maintain the growing trend despite current global economic situation.
One of the biggest challenges retailers have faced this year has been the decline in the number of tourists from Brazil, Russia, China and Iran.
Emax and Jackay's Electronics recorded double-digit year-on-year growth in sales in 2015 while Eros and Plug-Ins witnessed single digit growth in sales.
Emax, which has grown to 67 stores after the launch of first store in 2006, will continue to expand.
"We'll be 100 stores by 2017. In line with our strategy of being the closest store to consumers, we also have major expansion plans in the pipeline, which will set the ground for further growth and extended revenue streams as we plan to tap into newer markets in the Mena (Middle East and North Africa) region and beyond," Emax chief executive officer Neelesh Bhatnagar told Khaleej Times.
This year, Jumbo has achieved several milestones in its retail space. The highlight was the reopening of its revamped flagship store in April in the Mall of the Emirates with a fresh, new format designed to enhance the customer experience.
"It has also been a year where, despite global market fluctuations, we have remained cautiously optimistic. We have witnessed a positive sales performance through 2015, with certain peak retail seasons such as DSF and Gitex Shopper driving the trend," Nadeem Khanzadah, head - OmniChannel Retail, Jumbo Group, said.
New year expectations
Despite all challenges, retailers are ready to invest more in expansion in 2016 and also want to increase sales through their online portals next year. "We have been growing at a 28 per cent year-on-year growth and we're expecting to only increase this figure. To remain close to the customer and evolve with customer expectations, we are currently working to further build our e-platform," Bhatnagar explained.
Eros Group chief executive officer Deepak Babani said: "We will continue to target a growth for 2016."
Omar Abushaban, general manager, Plug Ins, is looking forward to 2016 and expects a single digit growth driven by strong demand for smartphones, home appliances and wearables.
"Our recently revamped e-commence website also provides us with opportunities and will be one of our key focus areas as we look to providing our customers with a complete omni-channel retail experience," Abushaban explained.
Challenges in 2015
The main challenges facing the retail channel in the region are: Availability and the sourcing of products, hiring/training quality people, and retailer margins.
But Emax chief executive said: "We provide a unique and convenient in-store and after-sale experience that seeks to transcend the expectations of consumers. Our people are trained to be updated in the latest technological advancements and we look for the most creative ways of rewarding our customers for their loyalty."
Babani said that 2015 was a challenging year as after a long time consumer electronics categories like televisions and tablets saw a degrowth. "Currency valuations and geopolitical factors also played a catalyst in tourists spending potential," he added.
Jacky's believes that innovations have seemed to slow down and this could be the biggest challenge for the industry.
Rapid price erosion in many categories especially the panel business was one of the major challenges in 2015, according to Plug Ins general manager.
Opportunities in 2016
Emax chief executive believes that in 2016 "people should watch for a watch". Variable technology; a handheld device, a wrist held device, smart glasses, etc., he said, adding that today the main important thing that consumers should look for is the purpose of the electronic device; what are they going to use it for.
"In addition, we think the next big boom would be technology for health, technology for fitness and wellness, technology for home security which are already there but will even grow further. In the next five years, major changes will take place shaping the future of technology, but the good thing is that today's generation had the best of all technologies and they understand it better than us; they are considered to be the early adapters of technology and hence they will adapt easily to any upcoming change and upgrade," Bhatnagar explained.
Jumbo's Khanzadah said that in the consumer retail sector specifically, the consumer behaviour and tendency to replace and buy the latest products soon after they are launched has become the norm.
"We expect to see this trend continue through 2016. Moreover, the UAE continues to grow its popularity as a shopping destination. With the Dubai Shopping Festival just around the corner, the fundamentals of DSF and the UAE's high profile as a tourist destination remain as strong as ever. Despite the fluctuations in the Russian market - we continue to see growth from both strong traditional and new markets," he said.
Babani said: "We will take a pragmatic approach for 2016 as we see some of the challenges minimising but other challenges rising."
Plug Ins says that its recently revamped e-commence website provides the company opportunities and will be one of its key focus areas as the company looks to providing customers with a complete omni-channel retail experience.
abdulbasit@khaleejtimes.com