Author credits: Brianna Melville

Australian Broadcasting Corporation

Cafe owner Pia Richardson has hit the footpath to hand out flyers in the hope of encouraging customers into empty seats in her Geraldton cafe, 420 kilometres north of Perth.

Business has been dwindling since December, she says, and the slump has forced her to confront the prospect of flipping the “closed” sign for good.

Her difficulties are echoed across the nation as a new report by CreditorWatch shows businesses, especially in the food and beverage sector, are struggling.

Hospitality closures hit a record high of 9.3 per cent — one in 11 businesses — in the 12 months to February, up from 7.1 per cent in the previous 12 months as customers under cost-of-living pressure cut their discretionary spending.

The report says the food and beverage services sector is dealing with the rising costs of food, energy and insurance price hikes, wage increases and higher rents.

Ms Richardson says she expected ups and downs when she opened the cafe in the WA mid-west coastal city in 2021, but not such steeply rising food costs and a doubling in insurance premiums.

“The cost of milk and butter have gone up 50 per cent,” she said.

“You can only pass it on so much before people won’t buy any more.

“It just wears away the little bit of profit that you have and you start eating into your spares (reserves of money),” she said.

Two break-ins at the business in recent months have added to the financial strain.

“Each time, we lose trade, we lose money (and) we have to pay to fix things,” she said.

‘Zero customer’ days add up

Down the road at a simulated car racing business, owner Edward Davidson says he is also having more “zero customer” days than ever.

Mr Davidson said he started Davos Sim Racing to keep on top of his mortgage when he “got too old to be in the mines”.

He dug into his superannuation to get the business established.

Players flooded his small arcade when the doors opened in 2020, but the numbers have dropped by as much as 60 per cent this year.

“I can get 10 days a month now, where there are zero,” he said.

“People just stopped spending. [The] business’s intake’s gone down, the lease has gone up, the insurances have gone up, the power’s gone up.

“We haven’t put our prices up.”

However, he says lots of locals pay for the same experience in Perth when they visit the capital city.

“They’re just taking the money out of town,” Mr Davidson said.

“They [locals] spend online or they spend out of town. Small family businesses really need the support of locals, otherwise, they shut down, and there’s nothing here.”

Inflation tightens wallets

Mid West Chamber of Commerce and Industry chief executive Joanne Fabling said the Reserve Bank’s efforts to bring inflation down over recent years had concentrated effects on small businesses.

“The whole reason for holding interest rates up was to get people to stop spending,” she said.

“Who does that affect? First and foremost, it will be where the discretionary cash goes, which is the cafe.”

Ms Fabling said rises in insurance costs were affecting sporting clubs and events as well as small businesses.

She said the increase in natural disasters had driven up premiums and those based in coastal areas were some of the worst affected.

However, businesses could not operate without insurance.

“I would love a federal election commitment from the major parties around how the federal government can mitigate some of these insurance risks,” Ms Fabling said.

“We need to be able to provide assistance to our small to medium enterprises so that they can operate effectively.

“Insurance as an overhead is going to kill them.”

Ms Richardson and Mr Davidson said it would help if customers shopped locally when they could.

“I had one of my friends say, ‘I always go through a drive-through and get a toastie, and I forget to come here’,” Ms Richardson said.

“It’s just about being mindful, and if it is about choosing a multinational, or a corporation over a small business, choose the small business.”

News Credit: https://www.abc.net.au/news/2025-03-19/cafes-hospitality-closures-record-high-as-
spending-falls/105052348

Credits: SA Kader, Zawya Projects

Rents have surged by up to 33% driven by booming e-commerce, expanding last-mile delivery networks, and the rapid growth of the manufacturing sector.

The UAE’s logistics and industrial real estate sector is witnessing sustained growth, driven by rising demand, expanding e-commerce, and strategic government initiatives.

This comes as vacancy rates have dropped to record lows, with Grade A warehouses in high demand, pushing occupancy rates to nearly 90-95 percent, according to Abhishek Mittal, head of industrial advisory, MEA at JLL.

“The demand is fairly robust at the moment,” Mittal said. “It’s coming from e-commerce sales, third-party logistics (3PL) providers, and freight forwarders. The UAE, being a major transshipment destination, sees large volumes funneling into free zones, though we’re now seeing diversification into mainland supply chains as well.”

Industry experts suggest that supply, however, remains tight in the UAE. Over the next 18 to 24 months, Mittal expects about 300,000 – 500,000 square metres (sqm) of new space to come online, driven by key developments such as Aldar’s 150,000 sqm project and JAFZA’s logistics expansion. Despite this influx, he anticipates rental rates will stabilise rather than decline.

E-Commerce and specialised logistics

According to Knight Frank, industrial and logistics demand in Dubai surged by 225 percent in 2024, reaching 40.6 million square feet — a record high. This demand spike has driven rents up by 33 percent year-on-year, with vacancy rates averaging just 3 percent. Dubai Investments Park saw the sharpest rise, with rents climbing 48 percent to AED 50–70 per square foot, while Al Quoz Grade A rents soared by 45 percent to AED 72–100 per square.

Kunal Lahori, director of Manrre REIT Logistics Fund, echoed the sentiment of sustained growth, highlighting a sharp rise in rental rates across key industrial zones with some surging by more than 20 percent.

He attributed this demand to the rapid expansion of e-commerce, cloud kitchens, and dark stores, which are driving the need for specialized logistics spaces. “We are seeing a surge in demand for cold storage and high-tech fulfillment centres,” Lahori said.

Abu Dhabi gains momentum

Institutional investors are showing growing interest in the UAE’s industrial sector. Manrre REIT Logistics Fund recently secured 500 million UAE dirhams from GFH Partners, a testament to growing investor confidence, according to Lahori.

“With rising land and rental costs in Dubai, we are seeing a clear shift in investor and tenant interest toward Abu Dhabi and other Gulf markets. Abu Dhabi, in particular, has witnessed an uptick in industrial rental registrations, signaling growing demand,” he said.

JLL’s Mittal also highlighted the rising costs affecting tenants, noting that rents have increased, particularly in Dubai, across both land and built-up areas. However, he pointed out that Abu Dhabi is emerging as a competitive alternative, offering high-quality infrastructure at more affordable rates.

“Projects like KEZAD Logistics Park and the ADAFZ developments are attracting occupiers looking for more affordable alternatives without sacrificing infrastructure quality,” he said.

He noted that inner-city logistics, driven by last-mile delivery platforms, is a major driver of demand. “We’re seeing companies like Noon and Amazon expand their dark store and micro-fulfillment networks to ensure faster delivery times — sometimes within an hour,” he said.

Advanced manufacturing

Matthew Green, Head of Research at CBRE MENA, described the UAE’s industrial market as, “characterised by robust demand and record-low vacancy rates,” driven by targeted government initiatives, strategic investments, and a growing population and supported “a growing population, strong consumer, rising e-commerce sales and post-COVID supply chain diversification.”

Green highlighted Abu Dhabi’s increasing appeal for occupiers looking to balance costs. “Abu Dhabi offers investors a compelling option, with a more competitive cost structure for utilities and strong government support, as the Emirate looks to position itself as a major industrial hub through strategic initiatives like the Abu Dhabi Industrial Strategy, and substantial infrastructure investments in industrial zones like KEZAD Al’Mamoura,” he said.

He also pointed to the UAE’s broader push into high-tech and advanced manufacturing. “The UAE’s push to develop a larger and more dynamic manufacturing sector includes a major focus on advanced manufacturing, logistics, and food, supported by the government’s strategic initiatives and major infrastructure investments.”

Mittal added that the UAE’s ability to pivot towards high-tech industries is also reshaping demand. “Sectors like pharmaceuticals, electronics, and advanced manufacturing are driving new requirements for specialised facilities. These businesses need temperature control, high security, and advanced handling capabilities — the traditional warehouse model doesn’t cut it anymore,” he said.

Lahori added that they are also developing Grade A specialised warehouses, which remain limited in availability. “These state-of-the-art, box-style warehouses feature 20-metre-high ceilings, multiple loading bays, air-conditioning, and advanced sprinkler systems,” he said.

Designed to enhance operational efficiency, Lahori noted that these facilities provide tenants with a “highly functional and optimised logistics environment.”

A global logistics hub

Green emphasised the attractiveness of the UAE’s industrial assets to investors, noting that “the UAE’s industrial sector is becoming highly attractive to both regional and international investors, as reflected in the rising investment liquidity.”

The UAE government’s ambition to position the country as a global logistics and manufacturing hub is backed by significant infrastructure investments, free zone incentives, and streamlined regulatory processes. With a top-seven global ranking in the Logistics Performance Index and continuous expansion of ports and airports, the UAE remains a prime destination for foreign direct investment (FDI), which reached $35 billion in 2024.

“The stability the market provides, coupled with major infrastructure projects and enhanced regional connectivity, will continue driving considerable growth,” Mittal said.

As the UAE’s industrial landscape continues to evolve, developers are navigating rising land costs with innovative strategies, including build-to-suit solutions and speculative developments. Lahori anticipates that the market is on track to double its logistics footprint within the next year, driven by strategic partnerships and an urgent push to meet surging demand.

With cold chain logistics, high-tech manufacturing, and last-mile delivery centres at the forefront, the UAE’s logistics market is set to remain a heavyweight in the region – and an increasingly vital hub for global supply chains.

News Credit: https://www.zawya.com/en/projects/industry/uae-logistics-market-heats-up-as-soaring-
demand-pushes-rents-up-and-vacancy-rates-down-ouathwtv

Credits: ARAB NEWS

Checkout.com, a leading global digital payments solutions provider, has partnered with Tabby, the financial services and shopping app, to offer flexible and high-performing payment solutions to merchants in the UAE and Saudi Arabia. This partnership integrates Tabby’s popular buy now, pay later solutions directly into Checkout.com’s platform, allowing merchants to offer consumers seamless, flexible payment methods at checkout.

As part of the agreement, Checkout.com has already integrated Tabby’s innovative BNPL solutions into its platform, offering merchants flexible, consumer-friendly payment options. This integration allows Checkout.com’s merchants to capitalize on the growing demand for alternative payment methods, boosting sales, conversion rates, and average order values. By offering greater flexibility at the point of purchase, the collaboration aims to enhance the shopping experience, foster consumer loyalty, and drive business growth.

The partnership comes as the BNPL market in the Middle East continues to experience rapid growth, with adoption rates reaching up to 62 percent over the past 12 months, according to Checkout.com’s latest Digital Commerce Report. This surge is driven by increasing consumer demand for flexible payment and credit solutions.

By combining Checkout.com’s cutting-edge payment technology with Tabby’s flexible financing solutions, this partnership creates a powerful ecosystem that enhances payment performance and enables merchants to grow their businesses by offering consumers their preferred payment methods. Together, Checkout.com and Tabby are dedicated to empowering consumers with greater choice, convenience, and flexibility, driving business growth and improving the overall shopping experience.

Abdulaziz Saja, KSA general manager, Tabby, said: “By partnering with Checkout.com, we’re bringing Tabby’s flexible payments to even more merchants. This gives Checkout.com’s businesses access to Tabby’s +15 million high-intent shoppers while offering their customers greater flexibility at checkout.”

“We are excited to partner with Tabby to empower merchants in the UAE and Saudi Arabia with more payment options for their customers,” said Remo Giovanni Abbondandolo, general manager MENA, Checkout.com. “At Checkout.com, we believe in the strategic value of payments in increasing revenue for our merchants through high performance payments, and this partnership reinforces our commitment to delivering solutions that drive business growth and enhance customer experiences.”

“In the past 12 months, popularity of BNPL remained a preferred payment method for online shoppers in the UAE and KSA with adoption rates reaching 39 percent and 42 percent respectively.”

This highlights the region’s growing demand for flexible payment options. Moreover, with an 80 percent increase in daily online shopping since 2020, consumers are eager to adopt new payment solutions,” he added.

“By integrating Tabby’s BNPL services into a single platform, we enable merchants to seamlessly offer flexible payment options with quick and efficient integration. This not only enhances the consumer experience but also drives higher conversion rates and customer satisfaction—creating real added value for everyone involved,” he concluded.

News Credit: https://www.arabnews.com/node/2593932/corporate-and-sponsored-content

Credits: BUSINESS TECH

Checkers and Spar are rolling out high-end grocery stores, targeting a market segment Woolworths Food dominated for years.

On 5 March 2025, Woolworths released its interim financial results for the 26 weeks that ended on 29 December 2025.

The retailer’s turnover grew by 5.4% to R39.6 billion, supported by a strong performance in its South African food business.

The company’s operating profit from core trading activities fell by 13.3%, but its profit grew by 20.9% to R2.2 billion.

Woolworths’s food business reported a strong performance, with 11.4% turnover growth and an improved gross profit margin of 24.9%.

Woolworths Food grew revenue for the six months from R22.4 billion to R25.0 billion, which is exceptional in the local market.

In addition, the retailer’s on-demand grocery delivery service, Woolies Dash, saw sales increase by 49.2%, and total online food sales rose by 37.2%.

Woolworths Food is the feather in the retailer’s cap. It is the growth engine for the company and has a dominant position in South Africa’s high-end grocery market.

The company said Woolworths Food’s strong performance was driven by positive underlying volume growth.

This volume growth was bolstered by improved availability, ongoing innovation, and the company’s enhanced value proposition.

More targeted and effective promotions and chain efficiencies drove the higher gross profit of the food business.

These factors offset the impact of a growing online channel and the ongoing investment in the company’s value proposition.

Woolworths Food’s exceptional performance over the years has attracted the attention of other food retailers, including Checkers and Spar.

These retailers actively target Woolworths’s food business through services aimed at affluent South African consumers.

This retail battle is fought on many fronts, including high-end brick-and-mortar stores and online grocery deliveries.
Checkers stealing Woolworths Food customers

Checkers is gaining market share from Woolworths Food through its superior offerings and Sixty60 grocery service.

According to Shoprite’s financial reporting, Checkers is South Africa’s fastest-growing retailer in the premium food segment.

Checkers and Checkers Hyper increased their sales by 13.6% to R47.6 billion, constituting slightly less than half of the segment’s total sales.

Checkers has been winning market share from Woolworths Food in the premium food segment for years.

Since 2019, Checkers’ market share has increased from 57% to 62%, while Woolworths Food’s market share has dropped from 43% to 38%.

Sixty60 drives part of Checkers’ success in the premium food segment. The grocery delivery app has gained strong adoption across South Africa.

Shoprite’s results for the 26 weeks through December 2024 showed that Checkers Sixty60 increased sales by 47.1% and expanded to 601 stores.

It is not only Checkers Sixty60 that is eating Woolworth’s lunch. The retailer is also investing heavily in high-end brick-and-mortar stores.

Over the past decade, Shoprite has focused on capturing a larger share of the wealthy market segment in South Africa.

It used its Checkers, and lately, the revamped Checkers FreshX stores, to target richer South Africans through high-end products.

Increasingly, Checkers competes with Woolworths Food by delivering similar quality goods at lower prices.
Spar Gourmet stores strategy

Last week, Spar Southern Africa chief executive Max Oliva revealed that the company will roll out 30 to 40 high-end grocery stores.

The first high-end Spar store, which targets affluent shoppers, is set to open in the fourth quarter of 2025.

The new Spar Gourmet stores will target South Africans in the 7 to 10 Socio-economic Measures (SEM).

This group is defined as having high access to resources, infrastructure, and amenities. Simply put, these are wealthy South Africans.

Oliva said the retailer is looking at sites in high-end residential and urban neighbourhoods to access this market.

Spar wants to give South Africans a reason to shop by offering high-end products through key strategic partnerships.

The new Spar Gourmet stores will offer a standardised design and brand philosophy, which the group anticipates will allow for a high-margin retail model.

Through the Private Label Spar Signature Selection range and strategic supplier partners, it will offer differentiated product ranges and bespoke offerings.

It will offer a fresh arena implementation and a product range and assortment specifically targeting wealthy South Africans.

Oliva said Spar’s Private Label Spar Signature Selection will play a big role in the new Gourmet stores strategy.

News Credit: https://www.arabnews.com/node/2593932/corporate-and-sponsored-content

by Joan Aimuengheuwa

Highlights

• Black Friday to Cyber Monday remains the most powerful retail window of the year
• As a share of total holiday transactions, total transactions from Black Friday weekend surged 30.4%, equating to the few days making up 10.3% of the total holiday period transactions
• e-Commerce still leads the charge
• In-store commerce is making a comeback. In-store revenue as a proportion of total revenue saw a 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue
• Omnichannel and data-led strategies set leaders apart

As the country waits with bated breath to see what the cabinet settles on for a national budget, which will have a big impact on the economic mood of the country, consumer confidence and investor sentiment, retailers are already planning for a bumper 2025 Black Friday and holiday season.

Black Friday, by its very nature, generates hype in the media and among retailers. However, a new index proves it is not hollow hype.

South Africa’s first formal Black Friday Index reveals that Black Friday to Cyber Monday remains the most powerful retail window of the year, according to World Wide Worx and Ecentric Payment Systems.

The index shows unequivocally that compared to the full holiday period from the beginning of November to Christmas Eve, Black Friday to Cyber Monday remains the clear peak shopping window, with significantly higher transaction and revenue growth than the rest of the season.

The Ecentric 2024 Black Friday Index, which was conducted in a partnership between Ecentric Payment Solutions and World Wide Worx, is based on analysis of data from retail transactions flowing through the Ecentric payment gateway. Payment data analysed excludes that of the grocery sector. Ecentric processes 20% of South Africa’s card transactions and serves as a trusted payments partner to 65% of JSE-listed retailers – serving their in-store, online, mobile and omnichannel payments requirements.

The index was compiled by independent technology research house World Wide Worx. It measures transaction volume and value generated from Black Friday to Cyber Monday, as a proportion of total holiday retail.

As a share of total holiday sales, online transactions for the Black Friday to Cyber Monday period, as a proportion of total transactions surged by 30.4%, rising from 7.9% to 10.3% of total holiday sales. Online revenue as a proportion climbed by 23.8%, increasing from 10.1% to 12.5% of total holiday revenue. In-store transactions as a proportion of total transactions grew by 15.4%, rising from 9.1% to 10.5% of holiday sales. In-store revenue as a proportion of total revenue saw a 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue.

Rory Bosman, Ecentric’s chief sales & marketing officer says the findings are good news for retailers as they provide telling insights that can prepare retailers to make the most of the critical retail period.

“The index makes it clear that the Black Friday weekend stands out from the full holiday shopping period, which runs from the beginning of November to Christmas Eve, in both sales volume and growth. The latest data confirms that retailers who capitalised on this peak moment saw the biggest gains, with online and in-store revenue outperforming the rest of the holiday season,” he says.

Of particular interest, is how dramatically the holiday shopping period is shifting. While in 2023 the Black Friday to Cyber Monday period reflected a small upward bump in transaction volume, the biggest shopping days came a week later.

“This is different in 2024,” says Bosman. “The Black Friday to Cyber Monday period saw a massive leap in transaction volume, compared to a slightly above-average level a week later.”

Key insights to capitalise on Black Friday in 2025 and beyond 

Bosman says there are a number of important lessons for retailers. The first is that e-commerce is more important than ever.

“Retailers seeking to make the most of Black Friday need to prioritise seamless digital experiences and mobile optimisation and exclusive deals,” he says.

Importantly, the 2024 Black Friday index proved that in-store retail is enjoying a strong revival. Bosman says that the retailers who benefit the most will be those that invest in immersive experiences such as interactive shopping, festive atmospheres and high-value promotions to attract shoppers.

He says consumers demonstrated they respond well to positive in-store experiences. Technology such as augmented and virtual reality could play a pivotal role here.

Omnichannel integration is non-negotiable, he says.

“The insights gained from the index tell us that online and in-store integration must be seamless, from inventory to promotions. The retailers that do the best are those that blend online and in-store efforts with consistent messaging, and, importantly, seamless experiences.”

Bosman says that data-driven personalisation holds immense potential for retailers seeking to set themselves apart from their competition. “AI-powered recommendations and targeted deals will set leaders apart. It is vital, in 2025 and beyond, that retailers use data for targeted promotions and flexible fulfillment options.”

News Credit: https://techeconomy.ng/black-friday-is-south-africas-single-biggest-retail-bonanza-of-holiday-period/

By Hanno Labuschagne

The South African government plans to review a VAT exemption on certain low-value goods imported from overseas, targeting the e-commerce industry in particular.

This was revealed in the National Treasury’s Budget Review document for the 2025/2026 financial year, published alongside finance minister Enoch Godongwana’s budget speech on 12 March 2025.

Chapter 4 of the document, which is titled “Other matters under consideration and consultation,” explains that government will relook VAT exemption contained in the VAT Act of 1991.

“Government will review legislation to bring parity to the VAT treatment of such goods purchased online, as many offshore suppliers of these goods are not registered for VAT,” Godongwana said.

While it did not specifically name any companies, the import tax practices of Chinese e-commerce retailers Temu and Shein have been in the spotlight since early 2024.

Many local online retailers and representatives of popular goods manufactured in South Africa that are also sold by the Chinese stores — including clothing — cried foul over Temu and Shein’s cheap prices.

Some industry stakeholders accused the retailers of dodging import taxes by splitting up packages into lower-value consignments and reassembling them after import to abuse South Africa’s de minimis rule.

It soon emerged that South Africa does not have a de minimis, but there was an old concession on the taxman’s books they were likely exploiting.

Industry sources alleged the problem was a South African Revenue Service (Sars) concession from 2007, which allowed them to pay a flat duty rate of 20% without VAT on low-value imports below R500.

That concession aimed to simplify customs clearance processes for logistics companies as international e-commerce activity started accelerating.

However, local retailers regarded this as highly unfair, considering they must pay a 45% duty on clothing bought into the country by major retailers.

This high duty aims to protect the local textile industry, which has been bleeding for many years due to imports from Asian countries, where labour and materials are much cheaper.

Taxman’s confusing response

Sars responded by announcing it would start levying the entire 45% clothing tax on all applicable imports, including those valued under R500, from 1 July 2024.

That plan was put on indefinite hold and instead, the taxman implemented an interim measure in which it said it would levy 15% VAT on top of the 20% duty on all low-value orders.

That measure was supposedly put in place from 1 September 2024.

From 1 November 2024, Sars said it would reconfigure the 20% flat duty to align with the World Customs Organisation (WCO) guidelines on imports.

However, there is still great uncertainty around the revised taxes as Sars must still announce two key amounts in the WCO guidelines — the de minimis and minimum declared value.

These are necessary to determine in which broadband categories imported goods will fall as part of the WCO guidelines. The broadband categories are as follows:

• Category 1: Correspondence and documents with no commercial value – Not subjected to duties and taxes, immediate release on the basis of a consolidated declaration that may be oral or written.
• Category 2: Low-value consignments below a specified de minimis threshold — No duties and taxes are collected, and immediate clearance and release are done against a manifest, a waybill, a house waybill, a cargo declaration, or an inventory of items.
• Category 3: Low-value dutiable goods above de minimis, but below full declaration value threshold — Dutiable, and the use of a simplified declaration, or release against a manifest with subsequent simplified clearance, etc.
• Category 4: High-value consignments – Consignments not falling under the three categories described above and includes consignments containing goods that are subject to restrictions. Normal release and clearance procedures, including payment of duties and taxes, apply.

MyBroadband has analysed the effective taxes on numerous Temu and Shein orders placed after 1 September and 1 November and found that the effective tax rate was below 15% on some orders.

That implies that certain Temu and Shein imports are still being cleared through customs without incurring VAT.

News Credit: https://mybroadband.co.za/news/business/586664-warning-to-temu-and-shein-in-south-africa.html

The Middle East is witnessing an unprecedented retail boom, and Carrefour is at the heart of it. The French multinational retailer has announced a significant expansion in Saudi Arabia, reinforcing its presence with new hypermarkets and a strengthened online platform. This move aligns with the Kingdom’s Vision 2030, which aims to diversify the economy and enhance consumer retail experiences.

With a rising population, increasing urbanisation, and growing demand for both international and local products, Saudi Arabia has become a key battleground for global retailers. But what makes Carrefour’s strategy unique, and how will it shape the future of grocery retail in the region?

Carrefour’s Growth in Saudi Arabia: A Strategic Move

Carrefour, operated by UAE-based retail giant Majid Al Futtaim in the Middle East, has been steadily expanding across the Gulf region. Saudi Arabia, as the largest market in the Gulf Cooperation Council (GCC), presents immense opportunities for growth. The latest expansion includes:

• New hypermarkets: Carrefour is opening multiple large-format stores across key cities such as Riyadh, Jeddah, and Dammam.
• Enhanced e-commerce platform: The retailer is investing heavily in digital infrastructure, aiming to capitalise on the region’s rapid shift towards online grocery shopping.
• Local sourcing initiatives: Carrefour is increasing partnerships with Saudi suppliers to offer more locally produced food and grocery items, aligning with the country’s push for food security.
• Sustainable retail practices: Carrefour is implementing eco-friendly measures, such as reducing plastic packaging and introducing energy-efficient store designs.

This expansion strengthens Carrefour’s foothold in the Middle Eastern market while positioning it as a major competitor to regional chains and global rivals such as Lulu Hypermarket and Walmart-backed Noon Grocery.

Why Saudi Arabia? The Retail Market’s Rapid Transformation

Saudi Arabia’s retail sector is undergoing a transformation driven by several key factors:

1. A Young and Digitally Savvy Population

With over 60% of the Saudi population under the age of 35, tech-driven shopping habits are reshaping the retail landscape. E-commerce, mobile payments, and digital loyalty programmes are in high demand, prompting Carrefour to invest in an omnichannel approach that integrates physical stores with online services.

2. Government Support for Foreign Investment

As part of Vision 2030, Saudi Arabia is opening its doors to foreign retailers, encouraging investment in modern retail infrastructure. Carrefour’s expansion aligns with this initiative, benefiting from relaxed regulations and government incentives.

3. Demand for High-Quality and International Products

Saudi consumers are increasingly looking for diverse product selections that include organic, international, and premium food items. Carrefour’s global supply chain allows it to meet this demand while also incorporating locally sourced products.

4. The Shift Towards Hypermarkets and E-commerce

While traditional supermarkets remain popular, there is growing interest in large-format stores that offer a one-stop shopping experience. Carrefour’s hypermarkets cater to this trend, while its online platform ensures convenience for tech-savvy shoppers.

How Carrefour is Differentiating Itself in the Market

Carrefour is leveraging several key strategies to gain an edge in the Saudi retail sector:

1. Investing in AI and Smart Retail Technology

The retailer is integrating AI-powered checkout systems, automated stock management, and personalised digital promotions. This enhances efficiency and customer experience, positioning Carrefour as a tech-driven retail leader in the region.

2. Strengthening Local Supply Chains

To align with Saudi Arabia’s economic goals, Carrefour is increasing its partnerships with local farmers and manufacturers. This not only reduces import dependency but also helps Carrefour offer fresher, more affordable products.

3. Expanding Private Label Products

Carrefour’s private label brands provide high-quality alternatives to leading global brands at competitive prices. With rising price sensitivity among Saudi consumers, this strategy helps drive customer loyalty.

4. Enhancing Sustainability and CSR Initiatives

Environmental and social responsibility are becoming key factors in retail success. Carrefour is actively reducing food waste, launching eco-friendly packaging initiatives, and supporting community programmes in Saudi Arabia.

Challenges in the Saudi Retail Market

Despite its strong growth potential, the Saudi retail market presents challenges that Carrefour must navigate:

• Intense Competition: Local players like BinDawood and Panda, along with regional chains such as Lulu Hypermarket, pose stiff competition. Carrefour must continuously innovate to maintain its market share.
• Regulatory Changes: Saudi Arabia’s evolving business regulations require adaptability, particularly in areas such as labour laws, localisation policies, and pricing controls.
• Cultural Preferences: Understanding and catering to Saudi consumer preferences, including halal product offerings and family-oriented shopping experiences, is crucial for long-term success.

The Future of Grocery Retail in Saudi Arabia

Carrefour’s expansion in Saudi Arabia is a testament to the country’s growing influence in the global retail landscape. With increasing urbanisation, rising disposable incomes, and a strong push for digitalisation, Saudi Arabia is set to become a hub for modern retail innovation.

Looking ahead, the key trends shaping the Saudi grocery sector include:

• Continued growth of online grocery shopping: Retailers will invest further in e-commerce platforms, delivery services, and AI-driven customer experiences.
• More hypermarkets and large-format stores: The demand for convenient, all-in-one shopping destinations will continue to rise.
• Sustainability-driven retail strategies: Consumers and regulators will push for eco-friendly practices, forcing retailers to adopt greener initiatives.
• Increased competition from new market entrants: As Saudi Arabia opens up to global businesses, more international retailers may enter the market, intensifying competition.

Carrefour’s aggressive expansion strategy positions it as a leader in this evolving landscape. By combining digital transformation, sustainability, and a strong local presence, the retailer is not only securing its market position but also shaping the future of grocery retail in Saudi Arabia.

As the Middle Eastern retail boom continues, Carrefour’s success in Saudi Arabia will serve as a blueprint for other global retailers looking to tap into this high-growth market.

News Credit:  https://internationalsupermarketnews.com/archives/19008

Preston Potts Digital Reporter

Former Woolworths CEO Brad Banducci has been appointed as the new chief executive of Ticketek’s parent company TEG.

The former leader of Woolworths will take over from long-serving TEG CEO Geoff Jones.

Mr Jones, who led Ticketek’s parent company for 14 years, will become TEG’s new chairman.

Mr Banducci said stepping into the new role aligns with his “personal passion for live events and a strong belief in the increasing importance of live experiences in general”.

“I am honoured to join TEG at this exciting time in its journey,” he said.

Amid a series of shake ups at the ticketing giant, Mr Jones said he was delighted to “pass the baton” to Mr Banducci, who has a “proven track record” that makes him “the ideal leader to guide TEG into its next phase”.

“As chairman, I look forward to working with Brad and the team to continue to grow the business,” he said in a statement.

It comes after the events company appointed former Seven marketing director Larissa Ozard as general manager in marketing (live entertainment) and announced the appointment of Simon Cahill, head of commercial, and Jono Whyman, general manager of SXSW Sydney, as co-managing directors for SXSW Sydney.

Mr Banducci had a controversial exit from Woolworths last year, and was criticised for his response to price-gouging claims investigated by the Australian Competition & Consumer Commission and the company’s decision to drop Australia Day merchandise.

He left Woolworths just days after what was a train wreck interview on ABC’s Four Corners, during which he walked out of an interview before coming back, as he was grilled over allegations of price gouging and a lack of fair competition in the Australian supermarket sector.

At the time he said in a statement it was his intention to “retire, not resign”, as he felt it was the right time to “pass the baton”.

Mr Banducci has a 30-year portfolio of experience in consumer and retail, working for Woolworths Group for 13 years and eight and half years as Group CEO.

News Credit: https://www.skynews.com.au/business/markets/ideal-leader-former-woolworths-ceo-brad-banducci-lands-new-role-at-ticketek-parent-company-amid-executive-shake-up/news-story/e2261a5fedf8ba7798066a9221e0b5f7