Waitrose Ups Exposure In Lucrative MGR Market
Upscale UK - based retailer Waitrose has increased its foothold in the lucrative UAE mass grocery retail market. Due to launch its sixth store in Abu Dhabi, the move highlights dynamic growth prospects for value added, premium positioned produce, spurred by both increasing Emirati and expatriate demand.
Under a license agreement with partner Fine Fare Food Market (FFFM), the store points to continuing opportunity for retailers looking to enter the UAE. With buoyant demand for Western food products and increasing awareness of product provenance, purveyors of premium foodstuffs such as Waitrose are enviably positioned to target increasing demand.
BMI forecast growth of 8.4% across the sector in 2013 , with a compound annual growth rate of 11.2% to 2017; indicating potential for growth. What is particularly attractive about the UAE and other Gulf markets is the continued momentum of premiumisation, driven by impressive spending power , which puts retailers such as Waitrose in an excellent position to supply this increasing demand. Shifting consumer habits are also likely to open further scope for acceleration, with health consciousness and the gradual uptake of organic produce to pick up pace over the medium term.
|UAE & Bahrain Total Mass Grocery Retail Sales, US$bn|