'Shoppertainment' drives modern trade says ACNielsen ShopperTrends study

The results of the in-depth study also point to a growing trend in 'Shoppertainment' which is one of the key factors driving modern trade and has played a tremendous part in the transformation of the retail industry.

A new study, 'ShopperTrends', launched by ACNielsen analyses the shopping and retail habits of shoppers in the UAE and KSA, which ultimately has a direct implication on retailers and manufacturers. Further studies reveal that modern trade contributes to 45 percent of FMCG sales across the GCC countries. The UAE's contribution is recorded at an all-time high of a staggering 53 percent towards FMCG sales. Current figures indicate that KSA accounts for 33 percent, due to widely spread population, but is expected to pick up by more than 50 percent in 2010.

"With the continuing trend towards retail concentration and the emergence of the marketing savvy consumer, there has never been so much competition for the retail dollar. This, in turn, has generated significant change and development in the field of grocery retailing," explains Piyush Mathur, Managing Director, ACNielsen, MENAP region. "The growth can be attributed to factors such as additional floor space, right location, greater variety and more consumers visiting these outlets."

He further explained that with almost six months of summer in the UAE, people seek indoor activities, usually in a mall or hypermarket once in four days, resulting in entertainment and shopping, which explains the phrase 'shoppertainment'.

Although frequency of visiting is high, shoppers have a repertoire of three to four stores that they visit every month. Their KSA counterparts frequent their favourite two stores, but spend 20 percent more than UAE shoppers in supermarkets or hypermarkets, with groceries and personal care items taking top position.

"Manufacturers need to have a better understanding of who they should be targeting in store and the decision making dynamics therein. Whilst females are the main shoppers in the UAE, their role in KSA is more of an influencer. In today's busy lifestyle, shoppers tend to be on auto-pilot essentially working on the sub-conscious rules they have formed both when it comes to selection of the retail outlet as well as deciding on brand purchase," added Mathur.

"As the retail environment becomes more competitive, retailers will have to contend for their share of the wallet of the increasingly fickle shopper in this region," commented Hubert Lobo, Retailer Services Manager, ACNielsen, MENAP region. "To win the battle for loyal shoppers, retailers must market their banners and brands in addition to efficiently managing their processes. Turning a store into a respected and trusted brand with attractive and established values is vital to stay ahead of the competition."

In the UAE, store equity in the retail market is driven by two broad factors - familiarity with the stores, and functional aspects such as accessibility and assortment. Another key finding is that whilst promotions are important, shoppers tend to seek promotions in their regular store rather than across stores.

ACNielsen | ShopperTrends draws on ACNielsen's 80+ years' experience and in-depth understanding of the dynamic retail sector, and in a nutshell helps answer the Who goes Where to shop What and Why.