If Oman is lesser known as a shopping destination in the Gulf the mushrooming quality malls and hypermarkets is an indication that retailing in the country has come of age Steeped in tradition, the sultanate has also embraced all that is modern. The result is not predominance of one on the other, but a perfect blend of the two, or a co-existence which is never jarring. This phenomenon is apparent as much in fashion and lifestyle as in the retail segment.

If the charm of the souqs in Muttrah, Seeb or Nizwa has remained intact, the modern supermarkets and hypermarkets have also been an inseparable part of life for both residents and expatriates in Oman.
That modern retail outlets are an essential part of life is evident from the rapid expansion of various retail chains in the Sultanate. While the first Lulu Hypermarket on a 250,000 sq ft area became operational in Bausher in September 2004, demand saw more of them open in Darsait, Sohar, Sur and Salalah. Plans are afoot to open more branches in Salalah, Sur and Nizwa.

Lulu has added an almost inexhaustible range of quality products within its diverse categories thus raising the level of customer expectations to newer heights. “Lulu’s wide assortment of self-brands offer great value-for-money products and have steadily gained acceptance amongst its consumers, mainly because of rigid quality and affordability,” says Ananth A.V. Regional Director, Lulu Oman. Shabeer K. A., General Manager, Lulu Oman, attributes the retailer’s success to “the range, quality, appealing display, affordability and, most importantly, the non-intrusive environment that brings the customers repeatedly to Lulu Hypermarket.”
Lulu Centre reiterates the group’s commitment to serve the customers by bringing a wide range of merchandise under one roof at competitive prices. The range covers department store merchandise, men's and ladies’ fashion, children's wear, designer sarees, furnishing and linen, footwear, perfumes and cosmetics, household goods, stationery, audio, video, home appliances and electronics, luggage, watches, toys and games, sports goods, fitness products, gifts and novelties. “Such a large variety of products add to the shopping excitement,” says Filip Nelson, general manager, Operations.

The extended Muscat City Centre (MCC) opened recently to give shoppers mind-boggling variety in top-of-the-line international brands. This marks the completion of phase I expansion at MCC, creating an additional 15,773 sq m gross leaseable area (GLA) of sprawling shopping space. It also includes an exclusive multi-level parking facility, which can accommodate 750 cars. The phase II extension is scheduled for completion in September and will see an additional 11,403 sq m GLA and 43 new stores.

At the extended area, one can find the best of brands, including the Landmark Group’s Home Centre, Centrepoint with its four brands – Splash, Baby Shop, Shoe Mart and Lifestyle, beauty stores Areej and Missha, and fashion lines Jeans West, Mexx, Trucco, Parfois and Hush Puppies.
“Oman with its steadily improving economy is ready for a massive retail boom. This expansion worth RO 22.5 million is all set to fulfil this demand and reinforce the fact that Muscat City Centre is the country’s leading shopping centre in terms of size, abundant variety and best brands under one roof,’’ says Graham Dreverman, CEO, MAF Shopping Malls.

Wayne Scherger, vice president, Divisional – Asset Management, MAF Shopping Malls, says that the group sees Oman as an “emerging market in retail and one that holds immense opportunity.” With the completion of phase II expansion by the end of summer, the original 33,036 sq m GLA of MCC will expand to 60,484 sq m. Post-expansion, MCC will boast of 144 outlets and a multi-level parking lot that will accommodate 2,250 cars. A dedicated flyover will directly bring customers from the Sultan Qaboos Highway into the car park.

Most of the shopping malls in the country are concentrated in the capital area. Al Fair, which does brisk business all year round, opened its eighth outlet at Markaz Al Bahja in Al Khoud in December 2005. It is planning to expand in the interior by opening two or three more outlets.

Naji Al Shaqri, operation manager, Al Fair Group, says, “It caters to all types of customers. However, the strategy is different in the group’s case. It has divided the customers in to three groups: Omanis and Arabs, Americans and Europeans, and Asians, including Pilipino, Chinese, Indians, Pakistanis, Bangladeshis and Sri Lankans. For example, Al Fair outlets in Madinat Al Qaboos, Al Sarooj and CCC cater mostly to American and European customers, besides Omanis and Arabs. The ones in CBD and Ruwi cater mostly to Asians. In the interior, the outlets will cater only to Omanis. The strategy is very successful.” If there is cutthroat competition in the retail market in Oman, Al Fair is a full participant in it in a very successful way, he says.
The Al Safeer Group has a 150,000 sq ft hypermarket in Azaiba, besides the Safeer Centres in Sohar, Barka, Ruwi, Al Khuwair and Qurum. “Plans are afoot to open two more outlets in Barka and Sohar,” informs Angelo Govia, general manager, Al Safeer Group.

Talking about the retail scenario in the sultanate, Govia says over a period of time, it has changed radically. “There is a lot of competition in the market. However, it’s good as long as it’s healthy,” he says, pointing out that in order to maintain its customer inflow, various strategies need to be formulated from time to time. “For example, there are seasonal schemes and various offers. In many of them, expensive prizes are given away. In fact, each supermarket or hypermarket has its own unique selling proposition – each applies a different strategy.”

Above all, Govia believes that in order to retain customers, it’s necessary to give back to them. Moreover, today’s business is not so much about profit making as it is about personal relations.”
Set up in 1985, Sabco Commercial Centre in Qurum is one of the popular and old shopping malls in the country, having multiple outlets in it that sell clothes, jewellery, designer watches and perfumes. The Qurum area boasts of several shopping complexes such as Capital Commercial Centre (CCC), Al Harthy Complex, Al Araimi Complex and Al Khamis Plaza and has remained a major attraction for customers since the late 1980s and 1990s.

Khimji's Megastore, which has Oman’s largest retail and wholesale distribution network and Markaz Al Bahja in Al Khoud have been attracting customers, although the number never comes close to that of Muscat City Centre or Lulu Hypermarkets’.

Talking about the business strategy, Anil K. Ved, purchase manager, Oasis Life Style LLC, Markaz Al Bahja, says: “The mall targets a select customer base. In order to market your products, you have to determine your target of customers. Our products are entirely different; everything from perfumes to clothes and garments are branded or designer and so are those sold in other outlets in the mall, we know for sure who our customers are.” The mall targets mainly Europeans and upper class Omanis. Hence there is no apparent clash or contest with supermarkets, hypermarkets or other malls, Ved says.

Thus, while Khimji’s Megastore is associated with names such as Chanel, Chopard, Sheaffer, Cross, Cartier, Nikon, Oris, Ray Ban, Rolex, Roger, Caron and so on, Al Araimi Complex is the hub for Bose, Kenwood, Rolex, Giordano, Maxx, and Burger King. “Naturally, our target is a particular segment of society. We have a specific target and it does not include the price-sensitive segment,” says a sales supervisor at an outlet at Al Araimi Complex, adding: “These brands are available only at select places. As a result, customers do not go to other places as they know what they want.”