Mid East retail facing major challenges, says Dubai Festival City Director

Phil McArthur said the region needs to implement best practices and differentiate product offerings if the industry is to be successful.

Speaking to delegates at the Middle East Council of Shopping Centres annual convention currently under way in Dubai, McArthur said retailing in the Middle East had undergone dramatic transformation in just 10 years.

"But in the past decade, many in the region have tried to jump on to the retail development bandwagon - some would say too many," said McArthur.

"Overbuilding is prevalent - the capture radius is shrinking, and with it, customer numbers. The situation is also compounded by the fact that in some markets, landlords and retailers are facing a situation where the same shopping experience is on offer in several locations - driving down footfall rates."

Among possible remedies said McArthur, are the implementation of best international development practices, management training and product differentiation.

"We must encourage the implementation of best practices throughout the region in the way our industry plans, designs, builds, leases, operates and manages shopping centres," he said.

"We must continue to attract international brands, ensuring that we don't all go after the same mix. There are many brands out there which haven't yet even thought of coming to the region. Let's go and find them. Let's have a bit of variety in the merchandising mix for the customer's sake and let's ensure we differentiate our products and offerings."

The crown jewel in the Dubai Festival City scheme will be a million square foot waterfront, retail and entertainment centre, which will have a Creekside promenade with new retail concepts inspired by the finest festival marketplaces in the world.