When counting beans is the bigger picture

Dr. Michelli shared his invaluable research and experience into how Starbucks has become one of the most recognised and the largest chain of coffee shops in the world today.

Explaining that the Starbuck's principle can be applied successfully to any retail business, Dr. Michelli recognised five distinct principles (Make it your own; Everything matters; Surprise and delight; Embrace resistance; Leave your mark) that, if implemented, can transform a company from the inside out.

It is difficult to argue with an organisation with 11,000 outlets in 37 countries, that pours coffee from a new outlet every four hours and each US$ 1 invested in 1992 would be worth US$ 65 today. However the secret behind their success is that their staff turnover rate is 60 per cent per annum against the industry average of 200 per cent or more. That loyalty is echoed by their customer retention. An average Starbucks customer makes 18 visits per month.

"The Starbucks Experience reflects principles that are simple, yet not simplistic. They are results-oriented and can be deceptively powerful when applied. A typical Starbucks customer like me would drink two coffees per day at say US$ 6 per day. That works out at US$ 2, 190 per annum, which over 35 years is US$ 76,650. Businesses should look at the power of customer retention in this way, not just one item or in this case one coffee," said Michelli.

Starbucks' miniature employee handbook 'The Green Apron' may go someway to explaining this. The distinct lack of rules, are replaced by suggestions, goals, and the empowerment to make every customer's experience a memorable.

Throughout the Middle East a retail revolution is taking place with the retail sector currently valued at US$ 100 billion. Retail is second only to residential property in the non-oil economy and HE Sheikh Sultan bin Sulayem, Head of Dubai Ports World, commented at the opening, "The retail sector is vital to the growth of Dubai and we will continue to support events such as Retail City."

The show will also feature the prestigious Retail City Awards, which recognise excellence and innovation throughout the industry, acknowledging outstanding achievements. The awards will be presented on Monday night during a glittering gala dinner at The Fairmont Hotel, Dubai.

Naomi Koningen, Project Manager, Retail City 2007 commented, "Retail is rapidly expanding, but more importantly, it is sustainable. With 68 million visitors expected to visit the region by 2020 and population growth estimated to hit 50 million during the same period, retail has a long way to go before reaching saturation levels."