Faisal Abdullah Al Jedaie, CEO of Arabian Centres, explains how they are differentiating and why he’s optimistic for 2021. How is Saudi Arabia’s transformation impacting the retail and lifestyle sectors and what are you doing to capitalize on those major cultural and social shifts?
Saudi is transforming socially and economically as Vision 2030 unlocks remarkable potential and opportunities. The re-introduction of cinemas played a paramount role in increasing out-of-home entertainment spending and enhancing the quality of life. The country has seen a dramatic transformation in the retail sector as the consumer’s landscape is diversifying alongside the growth of the Saudi workforce and increasing disposable incomes. Therefore, Arabian Centres is undergoing a massive refurbishment from a traditional mall to a lifestyle destination to meet the ever-increasing demand.
How are you differentiating the brands you own and the experiences shoppers have at your malls?
Arabian Centres recognizes that malls are increasingly becoming an integrated lifestyle destination. So, the company continually reviews and adjusts the tenant mix with changing consumer preference, based on their target demographic within their respective catchment area. The company equally looks for opportunities to introduce more diverse retail units containing bridge brands and high-end luxury brands. Likewise, the upcoming developments will embrace iconic and modern design, outdoor and indoor offerings, with more focus on F&B and entertainment, along with lifestyle and supporting elements.
COVID-19 has had a disruptive effect on the global retail sector in terms of shopping habits, how can brick and mortar stores compete as shoppers’ behaviors evolve?
COVID-19 has collectively stunned the world and its implication has had an adverse effect on retail sectors. However, there are ways in which retailers can thrive to drive consumers back while adhering to social distancing measures. Clean and safe shopping that supplies a seamless and meaningful consumer experience is now more important than ever. ACC acknowledges the effects of this pandemic and therefore the company decided to implement health and safety regulations that ensure a safe shopping environment.
What’s the secret to building loyalty among shoppers?
Customers come in all personalities and with a diverse set of goals. Nowadays, they are looking for an unmatched experience that exceeds their expectations. Ideally, the golden rule is that we must acknowledge the customers as per their needs and wants through an exceptional customer experience. The key lies in understanding the volume of data available and using those data to boost customer loyalty, which will make the customer emotionally connected and encourage repeat visits. ACC is currently developing an integrated smart approach to enhance the overall customer’s lifetime value and understand further their shopping behavior to maximize their shopping experience.
Arabian Centres recently announced the soft opening of the Nakheel Mall Extension (Phase One) in Riyadh, how optimistic are you for 2021?
The retail sector in Saudi Arabia is in the recovery stage post lockdown but will continue to benefit in the long run. This will be further backed up by Vision 2030, with key developments set to position the country as a noteworthy destination and an attractive place to do business. The soft opening of Al Nakheel Extension has further enhanced the retail offerings of the existing Al Nakheel Mall through the introduction of new offerings to meet the overall demand. We are still optimistic for 2021, as our strategy is centered around cementing our leadership and boosting our “integrated lifestyle” offerings while serving our customer and partners in a way that ensures a positive impact.
Source: Forbes Middle East
