Driving Retail Transformation in the Middle East

In the latest episode of Retales, from retailers to retailers, host Lucas welcomes Elie Aramouni, Chief Transformation Officer at Cenomi, for a deep dive into the evolving landscape of retail, particularly in the Middle East. Aramouni, with a wealth of experience across various sectors and a passion for innovation and retail transformation, shares invaluable insights garnered throughout his career.

Driving Retail Transformation in the Middle East

The conversation kicks off with Aramouni outlining the transformative journey of retail in Saudi Arabia, rooted in the Vision 2030 initiative. “Economic diversification and a focus on non-oil sectors”, notably retail, lay the groundwork for substantial growth and innovation in the industry. Aramouni highlights the emergence of e-commerce players and the adoption of technology like AI, data analytics, and digital payment platforms as key drivers shaping the retail transformation.

Moreover, Aramouni delves into the shifting consumer preferences, emphasizing the demand for personalized shopping experiences and convenience. He discusses the rise of omnichannel retailing and the importance of integrating online and offline channels to meet consumer expectations seamlessly.

Luxury retail also takes center stage in the discussion, with Aramouni noting the expansion of luxury brands in Saudi Arabia through strategic partnerships. Despite the growing influence of e-commerce, Aramouni underscores the enduring significance of the mall culture in Saudi Arabia, where consumers cherish the retail experience. “The mall culture is still very strong in Saudi Arabia, where people like to go and enjoy”, he explains.

Transitioning to the challenges faced in the industry, Aramouni addresses the importance of Saudization initiatives and the need to bridge skill gaps and perceptions about certain jobs. He emphasizes the role of training, career advancement opportunities, and competitive compensation packages in attracting and retaining local talent. “Companies need to collaborate with the government agencies to be able to navigate all the regulatory requirements”, he points out, and of course, innovation is key to overcoming these challenges.

Aramouni advocates for a holistic approach to retail transformation, emphasizing the necessity of clear vision, leadership commitment, and employee empowerment: “I think before we start any transformation, a company needs to have a clear vision and communicate that vision throughout the organization so that they get all the employees on board, so that they get their employees to understand where they are going and how they are going to get there.” He stresses the importance of investing in training and development, change management frameworks, and performance management to drive successful transformations.

Furthermore, Aramouni discusses the symbiotic relationship between innovation and operational stability, highlighting the role of technology, particularly AI, in enhancing customer experiences, demand forecasting, inventory optimization, and pricing strategies. But, “It’s not a switch”, he says, “You cannot just go from a technologically disabled organization to a technologically enabled organization. You just have to start building the foundation by having the right data, the clean data, and then build the building blocks on top of that”.

When it comes to prioritizing initiatives, Aramouni emphasizes a balanced approach based on impact and ease of implementation, coupled with budget considerations. He stresses the importance of being three steps ahead, consistently delivering, and trusting the process to navigate the complexities of retail transformation successfully.

Reflecting on his personal journey, Aramouni shares his deep-rooted passion for retail, shaped by his family’s entrepreneurial background: “I was born in a, in a retail family. Actually, we have been in retail for 60 or 70 years, from my grandfather to my father. We still have a shoe store in my home country in Lebanon.”

He underscores the importance of enjoying the journey, being an owner rather than an employee, and trusting the process to drive meaningful change and leave a lasting legacy in the industry. “Be an owner, not an employee, always be consistent, be prepared, work for passion and enjoy the journey. Enjoy it to the max and try to leave a legacy”, he advises. 

As for the future of retail, Aramouni believes it will be “an experience, not a transaction.  People are ready or attracted to an experience, and they go for an experience, not a transaction,” he points out. 

In conclusion, the episode offers a comprehensive exploration of the dynamic retail landscape in Saudi Arabia and the broader Middle East, offering valuable insights and strategies for navigating retail transformation. Aramouni’s expertise and passion for innovation serve as a guiding light for retailers looking to thrive in an ever-evolving market.