The Covid-10 pandemic forced retailers to progress “years in months”, with omnichannel and quick commerce becoming central to business models faster than most had anticipated.
Recent data confirmed that there is no turning back from the seismic change we have witnessed, with 30 per cent of total sales in the UK in November taking place online, and “click and collect” expected to represent 13.9 per cent of online sales this year.
Similarly, in Germany, online sales during the 2021 Christmas trading period were expected to hit €23 billion ($26bn), a 31 per cent yearly increase. Across Western Europe, there are also now about 30 companies currently competing in the “quick commerce” market for groceries, many of which were established within the last year to meet consumer demand.
Retailers seeking to stay relevant in this fast-moving environment must act now to ramp up their digital strategies for 2022 and beyond considering these priorities: they must innovate using digital tools across the business and they must find the right balance between organic investment and partnerships to speed up transformation. It is important also to leverage first-party data to personalise the shopping experience.
Creating more — and better — data to support assortment, supply chain and pricing decisions is essential, as is exploring new revenue streams, such as retail media, which simply means advertisements placed on a retailer’s website or app by a brand.
However, when it comes to digital transformation, it is critical for decision makers to separate the hype from reality that will deliver a return on investment. For example, a global survey of 3,000 executives by the Massachusetts Institute of Technology in 2020 revealed that only 10 per cent of companies using artificial intelligence reported benefits.
One reason behind this trend is that few companies are actually configuring their organisations to use AI or other cutting-edge technology.
To achieve effective execution of their digital plans and unlock value, companies must commit to new business processes, as well as organisational and cultural changes.
Training is key in making the interaction between humans and technology more effective. These are necessary steps to move from a successful proof-of-concept to an initiative that can deliver ROI.
Another important consideration for retailers is to turn to “new economy” partners to cover specific capability gaps. It can help advance companies’ digital strategy in a quicker and more cost-effective manner. However, this should be defined carefully by each business according to the specific stage of its digital transformation and strategic goals.
The UK’s second-biggest supermarket chain Sainsbury's has partnered with food delivery platform Deliveroo to offer rapid delivery from local stores. French supermarket group Casino is leading a similar initiative with the German delivery company Gorillas, promising instant delivery of Monoprix and Franprix products ordered through the app. Casino has also bought a stake in the German start-up to expand the collaboration.
Traditional retailers are also harnessing big data through partnerships to unlock insights and personalise the customer experience, maximising as well as opening new revenue streams.
In September, Casino and another French grocer Intermarche created a joint venture to bring their innovative data services offering to food manufacturers. Another French retail major Carrefour recently set up a platform to provide brands with customer insights based on data collected from the group’s 80 million clients around the world.
Big British retailers, including Boots and Tesco, are also looking to capture brands’ advertising money through the recent launch of their own media networks.
As retailers continue to capitalise on the wealth of data drawn from customers, monetising media estates — from physical shelves to mobile phones and computers — is the next step for them in strengthening their role as digital ecosystems.
As with retail media, it has the potential not only to boost a company’s core business but also to create new revenue streams that will support the profitability of the overall group.
With huge amounts of data and cheaper-than-ever storage, analytics, AI and intelligent automation are the cornerstones of the intelligent enterprise. In retail, decision-making powered by data can revolutionise all areas within the business, from buying and assortment to pricing and supply chain management.
Big data analytics can suggest more relevant assortments to specific stores — tailoring merchandise to the preferences of a wealthier district or a less affluent one.
Data can also help retailers to move away from mass promotions by offering the right level of discount to the customer at a certain time of their buying journey, based on historical data, seasonal trends and patterns of online behaviour.
Crucially, smarter, crisper data also helps to reduce the effects of immediate issues facing the industry such as supply chain disruptions and labour shortages.
AI algorithms and advanced analytics being used in supply chain management are effectively streamlining processes and reducing costs, with an effect on both customer satisfaction and the company’s bottom lines.
Critical to mastering a digital effort — be it a project or an enterprise-wide transformation — is to put the customer at the centre and the business at the helm, and move away from prototype and hyped solutions.
Focusing on operational processes and training is what will help retailers to accelerate their digital journey and quickly reap the rewards of their investments.
Jean Laurent Poitou is a managing director with Alvarez & Marsal in Paris
UAE SQUAD
Mohammed Naveed (captain), Mohamed Usman (vice captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ways to control drones
Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.
"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.
New measures have now been taken to monitor drone activity, Geo-fencing technology is one.
It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.
The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.
The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.
FIXTURES
December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm
December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm
December 30
3rd/4th place play-off, 5pm
Final, 7pm
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Match info
Wolves 0
Arsenal 2 (Saka 43', Lacazette 85')
Man of the match: Shkodran Mustafi (Arsenal)
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
FIGHT INFO
Men’s 60kg Round 1:
Ahmad Shuja Jamal (AFG) beat Krisada Takhiankliang (THA) - points
Hyan Aljmyah (SYR) beat Akram Alyminee (YEM) - retired Round 1
Ibrahim Bilal (UAE) beat Bhanu Pratap Pandit (IND) - TKO Round 1
Men’s 71kg Round 1:
Seyed Kaveh Soleyman (IRI) beat Abedel Rahman (JOR) - RSC round 3.
Amine Al Moatassime (UAE) walk over Ritiz Puri (NEP)
