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United Arab Emirates Food and Drink Report Q1 2009

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United Arab Emirates Food and Drink Report Q1 2009

The UK’s Waitrose is the latest mass grocery retail (MGR) operator to enter the UAE’s retail sector,having recently opened its first outlet outside of the UK in Dubai, as discussed in BMI’s recentlypublished UAE Food & Drink Report for Q109. Although the retailer would not give any specificsregarding its opening schedule or planned store numbers, it did say that it eventually plans on establishinga chain of stores throughout the country, with a second outlet planned for opening before the end of theyear at the Dubai Marina Mall. Waitrose has partnered with local operator Fine Fare Food Market forits expansion in the UAE, having stated that this partnership represented the most appropriate way toenter this market.Reports from earlier in 2008 had Waitrose partnering local supermarket operator Spinneys and openingmore than 20 stores in the UAE by 2010. However, that deal appears to have fallen through, resulting in adelay in the initial store openings. Waitrose's private-label products have been available in Dubai for thepast four years, and the company currently exports its products to 20 countries. With competition in itshome market very intense, Waitrose has been looking for new avenues of growth. The company had saidthat it chose Dubai for its first international outlet due to the large number of wealthy expatriates as wellas the local population's eagerness to try premium Western brands.The UAE’s status as the place from which to establish regional growth has fuelled interest from investors.As the concept of modern retailing becomes more commonplace and accepted in the region, more andmore investors can be expected to enter the UAE retail sector in order to establish their brand in theregion and to gain experience in what is the easiest operating climate in the region. For example, regionalpowerhouse Carrefour initially entered the Middle East via the UAE and has since had considerablesuccess throughout the region. Fellow multinationals can be expected to follow suit should they decide toenter the region, with Waitrose’s entry the most recent example.The country’s impressive economic growth has been fuelling consumer confidence in recent years,changing the way people shop for food and drink. This trend is expected to continue, with BMIforecasting very strong sales growth of 80.1% in the UAE’s MGR sector to 2013, with all formatspredicted to contribute considerably, although the hypermarket and the convenience sectors are likely tobe the main drivers of growth. Despite the global economic slowdown, we have penciled in an annual realgrowth rate of 7.1% in 2008 for the UAE, down from 7.6% in 2007 (and an average of 8.6% annuallybetween 2003 and 2007). Although consumer spending has slowed down on the back of high inflation, ithas not taken a major hit, and with GDP growth expected to rebound slightly in 2010 when we forecastoil prices to rise once more, the long-term outlook for the UAE’s retail and food and drink market is stilllargely positive.

AuthorBusiness Monitor International
List Price$495.00
Number Of Pages53
Product GroupBook
Product Type NameABIS_EBOOKS
Publication Date2009-02-05
TitleUnited Arab Emirates Food and Drink Report Q1 2009
Release Date2009-02-05
FormatDownload: PDF
Model Name/TypeMPNEAN/UPC
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