Episode 21 | About MENA’s Retail Shift

Joining us on this episode is an executive with a wealth of experience in the retail sector, particularly within the MENA region. He is currently the Executive Director of the Beauty, Sports & Lifestyle Divisions at Cenomi Retail, and has also held key roles at major retail companies like Al-Futtaim, Celio, and Inditex: Ali Nasser. 

In this episode of Retales, powered by Orquest, the discussion centered around the evolving retail landscape, with a focus on the dynamic MENA region, the integration of technology, and the shifting demands of customers. Ali, a seasoned retail expert, shared his insights on the ongoing transformation of the industry in the Middle East, covering the key challenges, technological advancements, and how businesses are adapting to meet the needs of modern consumers.

One of the most significant trends in retail is the blending of physical and digital shopping experiences. Ali explained, “retailers are really integrating physical and digital channels to provide cleaner shopping experiences and having an omnichannel experience.” This shift is redefining how customers interact with brands. Consumers expect seamless transitions between online and offline shopping, making it crucial for retailers to offer an integrated, convenient experience across all platforms. Retailers that are not embracing this change risk falling behind as the industry continues to evolve.

Beyond technology, there is a notable push towards building strong communities around brands. Ali observed, “Another point, all the brands are really building, trying to build community around their brands to create disloyalty and social engagement.” This effort to cultivate community is not just about selling products; it’s about fostering a sense of belonging and connection. Whether through social media engagement, loyalty programs, or personalized experiences, brands are recognizing the power of social engagement as a tool to drive customer loyalty and long-term success.

Despite the optimism around these advancements, Ali acknowledged that retailers in the MENA region face several significant challenges. “And the challenges I see, I mean everyone knows when we talk about challenges to start from the economic uncertainty,” he explained. Economic factors, from fluctuating consumer spending to market volatility, have made it difficult for retailers to predict trends and plan with confidence.

Additionally, regulatory and compliance issues can complicate the process of bringing new products to market. “I would also say another point can be the regulatory and compliance issues. You know there are the governments, they have a lot of regulatory and compliance issues and sometimes meeting those requirements can be a little bit challenging and then can impact the speed to market.“

Another challenge mentioned by Ali is talent acquisition. With many in the industry struggling to find and retain skilled workers, especially in regions with growing demands for local talent, it’s becoming increasingly difficult to maintain consistent service standards across different locations. “And there are other definitely challenges in terms of the skills in terms of talent, talent acquisition, you know, and the workforce nationalization, which make it harder for retailers to deliver the same standards,” Ali noted. This issue further compounds the challenge of scaling operations while maintaining high levels of customer satisfaction.

Amid these challenges, the rapid pace of technological change stands out. Ali emphasized the industry need to embrace new technologies to remain competitive, stating, “The pace of change is accelerating and I firmly believe retailers must adopt these technologies now to stay competitive.” He explained that simply keeping up with the technology is not enough; retailers must stay ahead of the curve, using tools like AI, automation, and advanced data analytics to enhance customer experiences and streamline operations. This mindset will be crucial for businesses to thrive in an increasingly digital world.

Ali also highlighted the importance of people management. “So people management and employees, their critical role in the success of any retailer. The employees are often the first point of contact between the brand and the customer,” he said. Retail staff are on the front lines, and their interactions with customers can significantly impact brand perception. Their attitude, behavior, and knowledge directly influence whether a customer returns or chooses to take their business elsewhere. Ensuring that staff are well-trained and aligned with the company’s goals is essential to delivering exceptional service.

Looking toward the future of retail, Ali predicted that physical stores will continue to evolve into multi-functional spaces. “The physical stores are evolving from purely transactional space to multi-functional environments that enhance the brand experience, support the omnichannel strategies, and foster community engagement.” The role of physical stores is no longer just about transactions but about creating immersive experiences that engage customers in ways that digital platforms cannot. These stores will provide a space for social interaction, brand engagement, and personalized service, all of which will support the broader Omni-channel strategy.

Ali also spoke passionately about the potential of the MENA region, calling it “one of the most dynamic and forward-thinking markets globally.” With its young, digitally savvy population, particularly among Generation Z and Generation Alpha, the region is rapidly becoming a leader in shaping the future of retail. “It has a young, diverse and highly digitally aware demographic, especially within the generations Z and generation alpha. This energy is changing how businesses engage with consumers and making the region a leader in shaping the future of retail and customer experiences worldwide,” Ali stated. This demographic’s engagement with technology and evolving expectations are pushing businesses in the region to be more innovative and agile.

In summary, the MENA region stands at the forefront of retail transformation, driven by technological advancements, shifting consumer behaviors, and a commitment to community building. Retailers who embrace these changes, adapt to new technologies, and prioritize customer relationships will be well-positioned to thrive in the ever-changing retail landscape. As Ali aptly put it, businesses must “evolve” and “adapt to the new things happening in the environment” to stay relevant and competitive in the years to come.

Listen to the full conversation on Spotify or wherever you listen to your podcast.