People in the UAE are shopping less often but spending more, a report by Kantar said.
Kantar is a data analytics and brand consulting company based in London.
Data from the company’s study showed that consumers are making fewer trips to retail stores, but the value of their spending on each trip has increased.
This trend was witnessed in 2022, and it increased throughout the year.
Change in marketing strategy
The study surveyed 3000 households in the country and found that the average number of trips they made to grocery and other stores reduced by 23 points since May 2019.
During the same time, the spending per trip increased by 27 points.
“This [trend] was driven by a rising basket value which was sparked by the global pandemic and compounded by the war in Ukraine and inflation. At the end of 2022, spend per trip reached the highest level since Covid,” the report said.
The report added that “retailers and manufacturers can enhance their strategies by understanding the shift in FMCG spending patterns to serve changing consumer needs.”
The report also explained that the FMCG sector is growing the fastest in the UAE and that shoppers are prioritising food and home care.
Imtiaz Hashem, consumer insights director at Kantar Worldpanel UAE said that “shoppers [are] shifting their spend on food and home care products, which grew by five per cent and seven percent, respectively”.
Mr Hashem also explained that promotions are no longer as important to customers as they once were.
“Their impact has dwindled over the past two years leading many brands to cut their promotional spend. Alternative marketing strategies and tactics may produce better results, such as improving the in-store experience, enhancing the product offering, leveraging social media and influencer marketing, and personalising the customer journey through data-driven insights,” he said.
The growth of online shopping
The report said that “online shopping results in a larger basket size compared to offline, and over time, consumers tend to pick up
increasingly larger packs when shopping online”.
Mr Hashem also said, “consumers purchased nearly six per cent of all FMCG products online”. As such, retailers and brands should adapt to new technologies and increase their online presence, he said.
Mr Hashem also added that brands should focus on targeting their customer base in better ways.
“This could mean renewing the appeal of premium brands to affluent segments or offering the right product assortment and bundles to attract middle-class shoppers.”
“By identifying and responding to the unique needs and preferences of different customer segments, retailers and manufacturers can position themselves for growth and success,” he said.
