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1 August, 2020

Outlook on Retail Sector Positive; Digital Transformation to Drive Growth

The new reality of a post-covid economy and society reflect in changing consumer habits, and digital transformation will be at the epicenter of a renewed retail sector, according to experts.

 

According to Alpen Capital, earlier industry estimates pegged the GCC retail sector growth at a Compound Annual Growth Rate of (CAGR) of 4%, from a value of $253.2 billion in 2018 to $275.4 billion in 2020, and then to $308 billion in 2023. However, consumers have changed their purchase habits, by cutting down on impulse purchase and sticking to planned/essential purchase habits only.

 

Experts at a seminar organized by RetailME pointed out that the future of the retail sector in the region will be driven by Artificial Intelligence, Robotics, Data Science and e-Commerce. This also means that the retail sector is earmarked for a massive transformation, which may render many of its current formats and habits as things of the past.

 

Online platforms and e-Commerce have now become the new norm, with many customers going on to create accounts and make their first time online purchases during Covid-19. This also meant that a completely new channel of attracting and retaining customers, the online channel, is something that would require the focus and attention of the retailers.

 

Dubai has started welcoming tourists and the Dubai Summer Surprises festival has kicked off, indicating that the Government and the key retailers are placing their focus on the retail sector as always.

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