The retail sector has experienced a remarkable transformation over the past decade, propelled by technological innovations and evolving consumer preferences. Embracing these changes is essential for businesses to thrive in today’s competitive landscape.

The Next Big Things in Retail summit in Riyadh, held in partnership with Oliver Wyman on November 12, explored the latest trends and innovations shaping the future of the retail industry. Industry experts, retailers, and technology providers gathered to discuss the key drivers of change and explore strategies for future success.

The one-day summit highlighted the increasing importance of e-commerce and the need for seamless omnichannel experiences. Additionally, the power of personalization through data analytics and AI was emphasized, as was the impact of social media on driving sales and building brand loyalty.

With over 300 global and regional retail leaders, innovators, and customer experience experts attending the summit, the agenda also explored the key trends shaping Saudi Arabia’s retail industry. 

RETAIL’S ROLE IN DRIVING PROGRESS 

The panel How Can Retail Drive Profitable Growth and Economic Progress? discussed the unique blend of opportunities and challenges in the retail landscape in the Middle East, particularly in Saudi Arabia. While a young population and national transformation initiatives fuel growth, factors like high segmentation, increasing competition, and rising consumer costs pose significant hurdles.

(L-R) Dr Martyn Davies – Accomplished Retail Industry Expert; Joe Abi Akl – Partner, IMEA Head of Retail and Consumer Goods | Oliver Wyman; Ahmed Yousry – Co-founder and Chief Executive Officer | Rabbit; Erdem Inan – Chief Executive Officer | Trendyol Group; Liji Varghese, Audience Development Lead, Fast Company Middle East

To capitalize on this potential, panelists emphasized retailers must adopt innovative strategies and leverage technology to enhance customer experience. Ahmed Yousry, co-founder and CEO of Rabbit, pointed out that AI can revolutionize operations, from customer support to logistics and forecasting. “We heavily rely on AI for customer support, product search, logistics optimization, and business forecasting.” However, he also acknowledged the hurdles of maintaining the excitement of discovery in a digital age “if we overwhelm customers with too many options.”

Meanwhile, Erdem Inan, CEO of Trendyol, emphasized balancing global trends with local preferences. He said, “We draw inspiration from global models in the Saudi market. We’ve adopted a marketplace model to satisfy diverse customer needs, similar to our successful approach in Turkey.”

Joe Abi Akl, Partner, IMEA Head of Retail and Consumer Goods at Oliver Wyman, highlighted the region’s potential. “Factors like a young population and national transformation align to drive positive industry trends,” adding that challenges like high segmentation and rising consumer costs can be difficult for businesses to grapple with.

He added that retailers can navigate the market’s complexities by leveraging technology, data analytics, and omnichannel strategies. 

All agreed that the future of retail lies in a combination of technology, innovation, and a deep understanding of consumer behavior. By embracing these trends and adapting to the changing landscape, the retail industry can continue to drive economic growth and prosperity.

In a fireside chat that tackled how brands could elevate customers to brand ambassadors, Yasser Taher, CEO of Magrabi Retail Group, highlighted the significance of omnichannel strategies and exceptional customer service. Talking about the importance of after-sales service and how it can contribute to customer loyalty and brand reputation, he said, “Based on customer feedback, after-purchase services are highly valued. We offer lifetime free services to our customers. Omnichannel strategies are key to enhancing these services.”

The event also featured a lineup of engaging conversations. Faisal Algain, head of growth and client engagement at Dentsu KSA, delved into the evolving retail landscape in the Middle East and highlighted the shift from traditional shopping to a more integrated and immersive customer experience. Algain discussed strategies for brands to create a unified and seamless customer experience across various digital platforms, including apps, retail media, and emerging super apps. He shared insights into how brands can effectively navigate this evolving landscape and drive customer engagement and conversions.

TOWARD A ROBUST RETAIL ECOSYSTEM

This was followed by a session by Cyril Semaan, a partner at Oliver Wyman, exploring AI’s transformative potential in the retail industry.

He said AI has been in the market for almost half a century now and has evolved tremendously from running basic tasks to driving predictive analytics. “Now, we’re going to an era with the advancement of cognitive capabilities. We can provide descriptive insights that are effective.” The session delved into the specific strategies and technologies that can help retailers harness the power of AI to drive growth and profitability. 

The summit also explored the role of innovative design and exceptional service in shaping the future of retail. Featuring Gregoire Charpe Civatte, vice president of customer experience and innovation, Majid Al Futtaim, and professor of luxury marketing at the American University of Sharjah, delved into how brands like IKEA use design to create engaging store environments and drive sales. They discussed transforming service teams into experience teams to deliver memorable customer interactions. 

Another panel discussion focused on the strategies needed for regional retailers to thrive in the competitive digital marketplace. Titled Competing in the Digital Marketplace: Building Future-Ready Retail Ecosystems, the session featuring Binoo Joseph – chief digital officer at Cenomi Group, Kartik Bhatt – chief digital officer at Modern Electronics – MEC (Al-Faisaliah Group), and Kunal Kapoor – CEO at The Luxury Closet explored how retailers can leverage technology, such as AI and data analytics, to create seamless and immersive customer experiences. They also discussed the importance of building future-ready digital ecosystems, anticipating customer needs, and adopting sustainable practices. 

(L-R) Liji Varghese, Audience Development Lead, Fast Company Middle East; Kunal Kapoor – Chief Executive Officer | The Luxury Closet; Kartik Bhatt – Chief Digital Officer | Modern Electronics – MEC (Al-Faisaliah Group); Binoo Joseph – Chief Digital Officer | Cenomi Group

In a session focused on the current state of the Saudi Arabian grocery retail landscape, Alexander Poehl – Partner, Retail and Consumer at Oliver Wyman, highlighted the lack of differentiation among retailers and explored consumer sentiment on major trends. By comparing the Saudi market to other global markets, he identified key opportunities for differentiation and growth. He discussed the strategies and actions required to emerge as a leading player.

“Retail is transforming fast and changing quickly. My call is to take action fast; the decisions you make today will impact how customers see you in the future,” Poehl said.

(L-R) Liji Varghese – Audience Lead | Fast Company Middle East; Amy Roko, Entrepreneur and Content Creator

The event concluded with a fireside chat with entrepreneur and content creator Amy Roko. The session explored how brands can leverage influencer partnerships to connect with their target audience and drive engagement authentically. It highlighted the importance of aligning with influencers who share brand values and can authentically promote products or services.