Hyper Market Industry in Sharjah, Uae: an Evaluation Using Ahp Technique

Topics: Retailing, United Arab Emirates, Shopping mall Pages: 13 (3449 words) Published: February 9, 2009
Hyper Market Industry in Sharjah, UAE:
An Evaluation using AHP technique


Among all retail formats hypermarket is growing very fast in UAE that is at the rate of 150 percent. The major players in this sector are Carrefour, Spinney’s, United, Choithram and Lulu. The focus of the problem is selecting a best hypermarket among the existing operators of Sharjah and for which we used seven major criteria for evaluating the hypermarkets such as product availability and variety, market coverage, channel density, customer density, nationality served, facilities and services and customer spending pattern. We used Analytic hierarchy process (AHP), developed by Thomas saaty (1980) to provide a simple but theoretically sound multiple criteria methodology for evaluating the alternatives.

Key Words: Hyper market, Analytical Hierarchical Process, Multiple Criteria

Introduction about UAE Hyper Market Industry
The retail sector in United Arab Emirates (U.A.E.) is growing rapidly in the past 10 years. To absorb the growth, Different retail formats are introduced into the U.A.E market. The supermarkets are introduced into the market around 1992 and the one stop shop concept of hyper market is introduced in 1996. The retail sales and growth is mainly determined by Abu Dhabi, Dubai and Sharjah, the three largest emirates of the U.A.E which account for nearly 75 percent of the population. The nearly 75 percent of the products sold in the super markets and hypermarkets are imported for the other countries where as only 25 percent of the products are produced locally.

The estimated annual value of the U.A.E. retail market is $2.5 billion. The estimated average annual growth in retail sales is 5-10 percent. The introduction of hypermarkets and superstores is re-shaping the retail sector. Hypermarkets openings increased 150 percent, reflecting the future market strength investors’ hold for mega store operations. Superstore and supermarket openings grew only moderately, by 15 and 12.5 percent respectively. (United States Department of Agriculture).

Hypermarkets in UAE
Competitions among the hypermarket chains are heating up with the expansion of retail sector. In the middle east Carrefour recorded $637 million, including food sales of $446 million . Among the top eight retailers in the Middle East, Abu Dhabi-based and Indian-owned Emke Group, which owns Lulu ranks among the top six. [pic] [pic][pic]

Its total retail sales were $310 million and that includes $185 million in food. The organised retail sector controls about 50 per cent of food sales in the UAE. The rest is shared by convenience stores and groceries. In the organized retail sector, Emke Group controls 32 per cent, co-operative societies have 15 per cent, Carrefour 14 per cent, Spinneys 11 per cent of annual sales, while others control the remaining 28 per cent.(Gulf news). In this study we have considered five hypermarkets namely Carrefour, Spinneys, LuLu, United and Choithram.

The UAE's most dynamic, fast-moving and exciting hypermarket chain and it is a joint venture company by Majid al Futtaim. Carrefour France, this global expertise helps them to offer shoppers in the UAE the same quality, variety and value-for-money and stock over 100,000 items always. They are providing friendly staff, free parking, multiple checkouts to avoid waiting and of course some of the lowest prices, top names and best quality goods for the shoppers.

They have five main sections in their hypermarket such as Market, Consumer Goods, Light House Hold, Heavy House Hold and Textile. Carrefour hypermarket accept the currencies such as UAE Dhs, US Dollars, Saudi Riyals, Kuwaiti Dinars, Omani Riyals, Qatari Riyals, Bahraini Dinars and Euros. In UAE they have stores in Abu Dhabi Airport Road, Abu Dhabi - Marina Mall, Ajman City Centre, Al Ain AL Jimi Centre, Dubai - Deira City Centre, Dubai - Al Shindagha, Dubai - Al Mamzar Century Mall,...
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