Retailers need open-door policy

Comment: Retailers are traditionally secretive - even more so when they're family-run. But transparency has its benefits.

Retailers are traditionally secretive - and this holds true in the UAE.
A sprawling myriad of gaud and glitz, the country's retail sector is one of the most visible to consumers, yet the local companies that own international brands often stay in the shadows.
They disclose very little about the country's biggest retail brands and the research provided by Euromonitor on retailers' market share is the first time much has come to light for consumers who visit the stores on a weekly basis.
The reason for UAE retailers' reticence is simple: they are private companies and not obliged to disclose any information about market share, sales or strategy. Globally, retailers tend to be less forthcoming than other companies because they cannot afford to see a competitor trump them to a top location or branding strategy.
But local analysts say retailers in the UAE need to change to further the industry.
Stuart Gissing, the regional director for Colliers International, a property consultancy, says if the region is to be aligned to international practices and be recognised for such, then greater transparency is required.
Retailers should open their books and allow their data to be collated by an independent source, which would allow brands to better understand the malls they are based in and the profiles of the shoppers walking through the doors.
The Department of Economic Development in Dubai is considering providing such a source of information, but it will have to ensure confidentiality and credibility. Retailers will not willingly or freely hand over information on their best performing stores and brands if the they are not confident the data is being used collectively and independently.
Greater industry data and transparency might also lead to a stock market listing for some retailers, moving away from family-run businesses to shareholder-owned.
Developments such as these are much needed to help heighten the attraction of the UAE as a financial centre and improve liquidity for investors.
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