Outsourcing Gaining in Gulf Retail Structure

“We hear a lot about innovation in the form of virtual reality fitting rooms, smart apps that track you as you walk around the mall, and other high-tech solutions to help boost sales at traditional shopping malls. But what about getting the basics right?” asks Dowell, who adds that failure to get the basics right contribute to lost sales in shopping centres and performance that are underwhelming.Within the retail environment, there are a number of customers to satisfy the ‘client’ through to the retail customers. “Sometimes, in particular during economic downturns, cost reductions drive service levels down which in turn leads to end customer complaints. Keeping both parties happy can be challenging and the increased use of social media to air complaints, potentially damaging a supplier’s reputation, is a concern,” states Beesley.He goes on to add, “With potential economic downturns always a threat, it is important that the FM solution is flexible enough to scale up or down in line with a client’s budget changes. At Transguard we work closely in partnership with our clients and ensure a truly flexible service offering.”

MMG has a long and proven track record of working with retail groups such as Alshaya, Azadea and Chalhoub Maghrabi, in addition to leading brands like Virgin, Boots, Starbucks, Dunkin Donuts, Marks and Spencer and Galeries Lafayette.According to Abillama, one of the biggest challenges is dealing with retail groups which operate 40 to 50 brands. “The facility management company has to understand and adapt to dealing with the requirement, not of one customer, but of 40 to 50, whilst also balancing the needs of the retail group as a whole,” adds Abillama. The key, Abillama says, is to balance the needs of all stakeholders. “Even within the retail groups, there are a number of stakeholders, from the store managers to shift managers, and the merchandisers to the brand manager, in addition to the head of the FM within the retail group. Each stakeholder has their own requirements and needs, and everyone always thinks that their issues are the most pressing! It is an intricate balancing act, but one which we thrive on at MMG,” he adds.

International Standards

With many Best Practices being followed, the standards in the FM industry, in many ways are on par with the international standards. The showcase malls in Dubai have excellent management standards with footfall and sales stimulated by their location, marketing, the shopping environment, their tenant mix and of course the weather.

Deryan says, “UAE is perhaps one of the most advanced countries in terms of technology and customer experience. Following this, we service-providers toe the line of providing highly professional services at par with international best practices and certified as per ISO and other bodies.”“In most cases, the front-of-house standards are up to world class,” says Dowall. “The challenge for the operators is to continue to attract new tenants and retail offers to maintain performance against increasing competition, e-commerce sales growth and changing consumer trends. Only by employing proactive retail asset management services and of course continuing to get the basics right will these malls be able to maintain their dominance in the market.”The required levels of performance across the UAE are varied. The luxurious or boutique malls tend to invest more in facilities management in order to ensure a world class service. “There are many examples of world class retail facilities across the region and this,” Beesley says, is a must in a country where people spend a significant amount of time within malls due to the climate. He also notes that in more conventional malls, often a more ‘cost-efficient’ and conventional solution is chosen. Despite this, he adds, that the standards would still be considered high when compared to international counterparts.