Rising Costs. Shifting Tastes. Stricter Rules

With shifting consumer behaviour, rising cost pressures, regulatory changes, and rapid digitization, grocery retail in the GCC is undergoing profound transformation. This high-level CEO panel brought together the region’s most influential retail leaders to explore how businesses are rethinking formats, redefining efficiency, and reinvesting in people and platforms to stay relevant in an increasingly competitive market.

Makram Debbas, Partner, Strategy & while moderating a power panel of grocery CEOs mentioned, “Grocery retail in the GCC is at a crossroads — leaders must balance speed with sustainability, digitization with human touch, and cost-efficiency with customer relevance. Today’s conversation was about decoding how to future-proof while staying grounded in operational excellence.”

The Pulse of the Market: Fast-Moving Consumers, Faster Retailers
With the introduction, the grocery leaders on stage started discussing key thought points. 

Mohamed Al Hashemi, CEO, Union Coop opened by underscoring the speed of consumer evolution in the UAE: “If you blink too long in Dubai, you miss the shift. Consumers are more aware, more price-savvy — and often quicker to adapt than retailers.”

Bejoy Thomas Pulickel, CEO, SafeerMarket traced three waves of evolution in UAE grocery — from modern trade entry to format diversification and now post-COVID efficiency. He highlighted growing regulatory demands, geopolitical volatility, and the urgency of tailoring offerings to complex, multi-ethnic demographics: “The biggest challenge is staying relevant — and that means understanding shopper behaviour at a granular level. Technology, if done right, helps you do that.”

Mussaab Aboud, CEO, Grandiose & Grandiose Catering, spotlighted land cost inflation and shifting consumer preferences as major pressures: “Yes, the market feels saturated — but there’s always a white space if you look deep enough. We’re betting big on fresh F&B, live cooking, and sustainability.”

Sunil Kumar, CEO, Spinneys, shared how health consciousness has led to double-digit growth in “consume now, consume later” fresh food categories:

“Customers are more mindful. They want transparency — where their food comes from, what’s in it, and how it nourishes.”

Bertrand Loumaye, CEO Retail, Mair Group, flagged challenges around capital deployment and internal agility: “Returns are tighter. Paybacks are longer. Governance and decision-making must evolve to keep pace with consumers — and with innovation.”

Majed Al Tahan, Founder & CEO, IACO and Co-founder & CEO, Danube Online, took a bold stance: “The age of large supermarkets is nearing its end. If customers trust your quality and assortment, they’ll order fruits online. CapEx-heavy formats won’t survive — speed, fintech and personalization will.”

Mark Mortimer-Davies, CEO, Choithrams, emphasized the enduring value of consistency and people: “In the rush to digitize, don’t forget what we already do well. Our business still hinges on people and experience — both in-store and behind the scenes.”

Sustainable goals, strategies for growth, customer understanding, and much more were discussed through the morning during this panel at the Food Business Forum 2025.

Formats, Footprints & Fulfillment: The New Playbook

As the grocery landscape evolves, retailers across the GCC are reimagining formats and investing in infrastructure to stay competitive, agile, and experience-driven.

• Spinneys introduced Kitchen by Spinneys, a health-forward, small-format store concept focused on “food for now and food for later,” reflecting the rising demand for fresh, ready-to-eat, and wholesome options.
• Union Coop reimagined its store layouts based on real consumer movement patterns, while restructuring internal operations to enable faster, silo-free execution.
• Amer Group (Mair Group) is undergoing a major integration of five regional retail entities. The transformation includes a unified loyalty program, standardized operations, and the rebranding of over 100 stores, alongside the launch of in-house training schools in butchery and fishery.
• Danube Online is investing SAR 1.5 billion into automated fulfillment centers to power the launch of 1,500 new convenience stores. This next-gen supply chain is designed to handle ultra-fresh categories and comply with new pre-packaging regulations.
• SafeerMarket is developing a 23,000 sqm distribution center with processing capabilities for fresh meat, fish, and bakery, alongside a dedicated fashion retail logistics arm — a hybrid model catering to the group’s diverse portfolio.
• Grandiose has set itself apart by designing hybrid retail spaces where 50% of the footprint is dedicated to live F&B experiences, merging dining, fresh produce, and grocery in one seamless format. This model enhances dwell time and offers differentiation in a crowded market.
• Choithrams is piloting a dark store model under a new standalone e-commerce division, while maintaining a strong focus on store consistency and operational excellence. With a dual focus on distribution and retail, the brand is also preparing for potential market consolidation and agile scale-ups.

The AI Conversation: Real Promise, Real Limits
Artificial Intelligence emerged as both a strategic differentiator and a practical enabler during the panel — with consensus that AI’s true value lies not in replacing people, but in augmenting precision, personalization, and agility.

Mohamed Al Hashemi shared how Union Coop’s AI-powered relaunch of its Tamayaz loyalty program led to a dramatic shift in member engagement — from a baseline of 9% to 58% active participation within just weeks. “One-size-fits-all no longer works. AI has enabled us to speak to each customer individually — and the results speak for themselves.”

Bejoy Thomas Pulickel mirrored this sentiment, revealing that Safir Plus, the loyalty program under SafeerMarket, scaled from 9% to 62% penetration this year. “It’s about understanding what’s in your customer’s pantry before they even walk in — that’s the power of personalized, data-driven retail.”

Mark Mortimer-Davies of Choithrams urged caution against “AI sameness,” sharing an incident where an external agency pitched work that was nearly word-for-word replicated by ChatGPT. “We must ensure we don’t lose originality in the rush to automate. What differentiates us cannot be templated.”

Majed Al Tahan emphasized that AI insights require human interpretation and contextual decision-making: “We formed an R&D team of Gen Zs and even Gen Alphas — not to follow trends, but to spot them before they even register as data.”

Bertrand Loumaye added a pragmatic view — urging retailers to treat AI as a focused tool, not an all-consuming solution: “Don’t boil the ocean. Start with specific use cases — whether in mass hiring, demand forecasting, or pricing optimization.”

Ultimately, the panel agreed: AI is not the future — it is the present. But its successful integration depends on leadership’s willingness to invest in talent, train teams, and embed AI as a strategic enabler across touchpoints.

Future Outlook: Their Bets for What’s Next

To close the panel, each CEO was asked to share a word or phrase that represents their boldest bet for the future — the principle that will guide how their business adapts, grows, and remains relevant.

• Mohamed Al Hashemi (Union Coop): Value Options
  “Affordability without compromise will define the future grocery playbook.”
• Bejoy Thomas Pulickel (SafeerMarket): Future-proofing Through Relevance
  “Knowing the customer better than anyone else — and staying meaningfully connected to their lives — is our North Star.”
• Mussaab Aboud (Grandiose): Innovation & Customer Satisfaction
  “Our differentiation lies in continuous reinvention and delight — from F&B experiences to sustainability-first formats.”
• Sunil Kumar (Spinneys): Human Element & Long-Term Vision
  “Fresh food is emotional. The retail business is still about people — their habits, their trust, their experience.”
• Bertrand Loumaye (Mair Group): Talent & Agility
  “To move fast and smart, we must empower our people with the right skills — and the freedom to act.”
• Majed Al Tahan (Danube Online / IACO): A-Team Culture
  “Winning the future of retail is about building a team that feels ownership — and is obsessed with execution.”
• Mark Mortimer-Davies (Choithrams): Digitally Enriched, Consistent Service
  “Whatever the format — online or in-store — consistency and reliability in customer experience will be our strongest asset.”

GCC grocery leaders are not merely responding to disruption — they are shaping it. With bold bets on fulfillment, F&B-driven formats, loyalty personalization, and AI-backed decision-making, the region is setting benchmarks. The underlying thread: agility, relevance, and a relentless focus on the consumer.