The FMCG sector saw consumer buying behaviors change significantly due to the pandemic. Supermarkets & Groceries in the UAE have been quick in their attempt to adapt to the changes, however, this brought its fair share of challenges that took a toll on many small & medium-scale businesses.

Due to the perishable nature of many grocery products, they are often subject to significant wastage and losses. Customers want the highest quality of the food they consume, from fruits, and vegetables, to dairy-based products. However, they cannot be stored for a long time. Wastage due to poor handling, production, and inadequate can often add up to 60% loss.

Considering the rapid adoption of e-commerce as a gateway to reach customers via supermarkets and grocery retailers has further cemented the importance of investing in the right storage and transport systems.

A proper mechanism is required to accommodate demands balancing both online and offline fronts of the business, where the whole process needs to have an efficient way to facilitate delivery and inventory tracking effectively.

Another challenge whose impact was further amplified during the pandemic is the emergence of multiple hypermarkets and online stores ramping up competitive pressure leading to many budding yet promising supermarkets struggling to make a mark.

To combat this, businesses are forced to consider different tactics to improve customer loyalty. However, due to the nature of how the industry operates on a low-margin scale, it is hard to invest in better rewards and benefits that can be offered to the customer.

Despite these odds, we can still differentiate ourselves if we effectively leverage customer data. By creating a personalized experience tailored to your customers’ purchasing habits & behaviors, we can deliver a shopping experience that is unique to them.

Navigating the FMCG sector can be challenging to adapt to, especially for small businesses where being constrained by financial setbacks can hinder your growth. When we work with our FMCG clients similar to yours, we will first analyze your business, the location you are based, and the demands of your particular demographic.

As an investment company, we will use our expertise to create a plan to support your grocery business‘ outreach & growth through financial support and leadership, if required.