Recent studies have shown that the majority of customers in the UAE prefer to buy groceries from retailers that offer discounts. In fact, 58 per cent of UAE customers are more inclined towards retailers that provide discounts, and 92 per cent actively seek out fruits and vegetables that are locally produced. These findings are based on the latest Oliver Wyman Customer Perception Map (CPM) survey, which tracks customer perceptions and habits in the grocery sector. The survey indicates that the UAE market has matured, leading to customers developing unique preferences compared to other GCC markets.
As a result of this shift in customer behavior, retailers in the UAE are facing the challenge of differentiating themselves in the market. The survey highlights the need for retailers to offer superior value or exceptional deals to stay competitive. According to the survey, personalization is also identified as a key differentiator in the UAE market, with more than 70 per cent of respondents expressing interest in personalized offers. This presents an opportunity for supermarkets to innovate and stand out from their competitors.
Personalization plays a crucial role in the UAE grocery sector, with consumers from diverse cultural backgrounds showing interest in tailored services and products. Alexander Poehl, a retail and consumer partner at Oliver Wyman, emphasized the importance of retailers innovating and differentiating themselves in the market. He mentioned that enabling consumers to access relevant products and promotions through loyalty programs could provide a significant market advantage. The survey also reveals that UAE consumers are more willing to share data to enable such programs, particularly in sectors like F&B, payments, and healthcare services.
When it comes to supporting local produce, the survey found that 92 per cent of customers intentionally seek out fruits and vegetables that are produced in the UAE. This trend is aligned with the government’s initiatives to boost local food security and support the agricultural sector. The Ministry of Climate Change and Environment reported that domestic vegetable production in the UAE currently meets over 20 per cent of the total local demand, with cucumbers accounting for 80 per cent of the production. With around 38,000 farms operating in the country, the total annual vegetable production is approximately 156,000 tons, while fruit production amounts to about 200,000 tons.
In response to changing consumer preferences and the increased demand for discounts, supermarkets in the UAE have been offering promotional deals to attract customers. Retailers understand the importance of providing value to customers and differentiating themselves in the market. By offering personalized services and tailored promotions, supermarkets can meet the diverse needs of consumers in the UAE. Additionally, supporting local produce not only aligns with customer preferences but also contributes to the government’s efforts to enhance food security and boost the agricultural sector.
In conclusion, the UAE grocery sector is evolving, with customers showing a preference for discounts, personalized offers, and locally produced goods. Retailers need to adapt to these changing preferences by innovating and differentiating themselves in the market. By leveraging loyalty programs, offering value through promotions, and supporting local produce, supermarkets can stay competitive and cater to the diverse needs of consumers in the UAE. The findings of the survey highlight the importance of understanding customer perceptions and habits to drive growth and success in the grocery sector.
