Retail Business And Gulf Region

Retail is the process of selling goods such as food or clothing or related services to consumers by numerous ways of delivery to make revenue. Customer’s satisfaction and needs enhance the demand of retail products. Companies sometimes deliberately create demand of products through various target markets and advertising strategies. The normal form of selling in retail business is shops; which are usually located on streets, housing streets or in shopping malls. Another form of retail business is online or electronic retailing, which is getting popular for business-to-consumers (B2C) dealings. 

Types of Retailers

According to the extent of business and the way by which they trade their merchandise, there are seven basic types of retailers:

·         Department Stores: In this type of retailing, an extensive range of products is offered at different rates. These products are supplied to different smaller retail stores. These stores are usually managed by same company. This type of retailing gives customers with an easy and affordable approach to a wide range of products.

·    Food Retailers: They specially focus on the supplying a large variety of food and grocery products. These food stores are referred as supermarkets. Many supermarkets also provide home appliances, fashion accessories and electronic products markets at economical prices. 

·      Warehouse retailers: Such types of retailers are mostly located in business parks or commercial areas where the rents are lesser and they supply a wide range of products at much lower rates as compared to other supermarkets or departmental stores. In warehouse retail there is very low or not at all customer services provided. And most of these require annual membership fee from their customers.

·         Specialty retailers: They deal with specific products, accessories and additional related products. So they provide their customers with expert knowledge and top class services at the same outlet related to that particular category of product.  

·       E-tailer: Such retailing offers customers to shop online through the internet and buy goods at competitive price, which is then delivered to the customers through postal services. This is an easy and convenient way of shopping.

·         Convenience retailers: Such type of retail stores located in residential areas and offers a limited range of goods at lesser rates to give convenience to customers. Common form of this type of retailing includes shops operated by single owner.

·         Discount retailers: A large variety of fashionable branded products are offered at discounted rates to customers. The reason behind low values of branded products is; they have ending stock products for sale or those which have been returned because of negligible fault. These retailers get services from brand advisory consultants to assist them to choose profitable brands and their products.

Situation of retail sector in Gulf

Retail business is developed in all around the world, but here we see the situation of retail sector in the Gulf, which is given below:

Bahrain: it is considered as the most diverse monetary in the retail sector. Ashrafs WLL is the biggest and leading retailer in Bahrain, which sells household items, electronics and major fashionable brands’ products.

UAE: Retailers in Dubai UAE are getting benefit from tax free-market financial system, which makes it simpler Gulf state to establish business. Main sector of retail in UAE is focused on garments and fashion industry. 

Saudi Arabia: It is one of the fastest growing retail markets having a range of goods from household items to fashionable clothes and accessories. Alhokair Fashion retailer is the leading and strong local market leader.

Oman: Retail business in Oman is not so grown up as in the Gulf. Muscat Grand Mall and Mustafa Sultan complex are latest retail projects to develop retail business. But Oman is lagging with presence of major retailer’s groups.

Kuwait:  Retail sector in Kuwait is well flourished among other GCC countries. Major retail sectors are electronics; vehicles; food and luxury products.

There are various Retail Advisory and consultancy firms in MENA region, which are providing their expertise to these retailers to establish a successful portfolio in this region. Shopping malls and department stores developers are interested to assign retail leasing agents to lease out their properties to various retailers.

Retail business development depends on product demands levels. Clothing, jewelry, electronics and other household items remain in demand, according to the customer’s needs. But grocery is the most preferred and vital thing in human’s life. This is the basic need of every person therefore; people prefer it than other things. That’s the reason; grocery retailers continue to reform this industry and make it more advanced.

The major trend of retail is towards grocery retail stores because this is basic and most necessary thing in life. Retailers also introduce latest food items and a range of drinks that enhance the demand of the product because people like to taste different food and drink items. It is supermarket, online store or small street store; grocery items remain on the first preference for everyone and therefore, Retail grocery business continually grows up in Gulf region.