GCC Retail Update: BCG’s warning to mall owners, leave old ways and adopt digital technology otherwise there will be loss.

A big report has come for those running shopping malls and retail businesses in GCC countries. Boston Consulting Group (BCG) has said that now it is not enough to just build big places or luxurious shops. Due to online shopping and changing habits, the old ways of running a business will no longer work, hence there is a need for major changes.

ℹ: Kuwait-Egypt Relations: Egypt made a big statement regarding the security of Kuwait, said – this is part of our national security.

BCG’s report titled “Imagining the Future of Retail: Beyond Space” states that developers should now focus on new technology instead of just renting out space. According to the report, if companies want to survive in the market, they will have to work on data analytics, digital platforms and better customer experience.

expert opinion

Andrea Pierobon, partner at BCG Middle East, said that changes in the retail business are coming very fast. He said that now it is not enough to just provide space, but such facilities have to be provided which are needed in today’s times. At the same time, Andy Veitch said that only those who will do new experiments from now on will be at the forefront of this business in the future.

Main reasons for change

The report mentions five big reasons that are changing the retail business. Apart from this, big projects are being built in Saudi Arabia’s cities like Riyadh and Jeddah, and Dubai and Doha, but increasing the space alone is not a guarantee of success. In many markets, the number of luxury shops has increased excessively, which has affected the earnings.

The report also states that now many malls are transforming themselves into ‘experience centres’ rather than just shopping centres. Companies are now opening small shops and promoting online commerce. There may come a time in the future when more than half of the purchases will be online and AI agents will help customers buy goods.