Footfall is not enough anymore for UAE retailers

The UAE is a tough retail environment, with all retailers struggling to maintain footfall, so stores are focusing on sales conversion of the customers who do come in.

Nautica has relaunched its flagship store in The Dubai Mall with a firm focus of conversion. Tom Dulat / Getty Images

The challenging economic environment is persuading UAE retailers to focus on customer service to maintain footfall and engender loyalty, according to the head of one of the biggest regional chains.

“Five years ago it didn’t matter how you treated this customer, because there was one waiting behind her, today that is not the case,” said Simon Cooper, the head of Centrepoint, part of the Landmark Group. “We have told our managers to be on the customer’s side, so there will not be a problem with returns, and if we haven’t got the product you want, we will do everything in our power to find it.

“We are fully integrating our e-commerce platform and will launch click and collect in the UAE on May 15.”

Mr Cooper said the UAE is a tough retail environment, with all retailers struggling to maintain footfall.

“The average basket price hasn’t changed, but the amount of people buying has.”

Nautica, the US fashion brand partnered with the Apparel Group, has relaunched its flagship store in The Dubai Mall with a firm focus of conversion. It currently has five stores in the UAE and is looking to expand. However, it says footfall is down in its stores and therefore those customers who do come in need to be better catered for to increase revenues.

“Footfall is down across the UAE market,” said Patricia Canavan, the vice president of Nautica. She said while retail was suffering globally, her firm plans 30 new stores in the GCC over the next five years. “I think the experience online and off­line has to be excellent, but here in the UAE the physical experience is critical to a brand’s success. While we may not expand as rapidly in bricks and mortar as we did 10 years ago, we are now spending more time making our outlets echo the desires of our customers.”

Centrepoint has 138 stores across the GCC and plans for three more in the UAE, expanding its customer-focused stores that include bells in the changing rooms to call for extra sizes and colours and mobile point-of-sale options to cut down on queuing.

Industry experts agree that good customer service has been a long time coming to the UAE.

“This is an industry trend which has been badly needed in the UAE,” said David Macadam, the chief executive of the Middle East Council of Shopping Centres. He said the rise of e-commerce meant retailers had to make the in-store experience satisfying and rewarding and incorporate technology into the bricks-and -mortar operation.

“Yes, it is an investment but it doesn’t cost, it pays. Many bricks-and-mortar outlets in western markets are finding the payback now. It is not a fight against e-commerce but adding another string of the retail experience to actively encourage in store participation.”

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