Aswaaq plans to set up 35 outlets in Dubai over the next seven years |
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Retail newcomer AswaaqAswaaq
intends to offer shares in an initial public offering in October, says CEO Abdul Baset Al Janahi. The company aims to have its first supermarket up and running by the end of the year and plans to build and run 35 outlets in Dubai over the next seven years.Why launch AswaaqAswaaq
now when there are so many other established supermarket operators in Dubai?We in AswaaqAswaaq
have a unique strategy, which will set new standards for the retail trade in Dubai. We will work in line with global standards in terms of products, services and procedures in all areas of our operations. The Dubai Government is granting land as well as a loan to cover the project cost. We will focus on the community in which we operate and at the same time seek to make profits. We are launching in a market with tough competition. And as a responsible company we will care for our customers and the community. We will endeavour to revive the concept of neighbourhood markets in each quarter of Dubai. In fact, our concern for the community is clear even before we start. We have run successful community campaigns, the latest being our environmental drive a week ago.You have been working for two years to make AswaaqAswaaq
see the light of day. Why has it taken so long? The time was spent on preparations since we did not want to be just a supermarket chain. We are different the idea behind AswaaqAswaaq
is to serve the community by all available means. We seek to raise the level of service in the retail sector. Customer service standards have deteriorated and the same can be said about the quality of goods.How many shops do you intend to open in future?
We plan to set up 35 retail centres in Dubai over the next seven years with a total area of 1.4 million square feet (sqft).
And how many have been completed so far?
By the end of this year we will have three centres completed and one will be active. Next year we will finish four centres and will award contracts for another four. Each one will have an average area of 45,000 sqft. The areas will range from 20,000 sqft.
The UAE has recently been hit by a shortage of basic foods. How do you plan to deal with such situations?
Let me first explain that the chain of supply is not wholly responsible for the disappearance of some items from the supermarket shelves. The problem appeared in other markets including some GCC states and a number of European countries as well as the US. The food crisis differs from one country to another according to the local legislation and the way business is done. However, our strategy focuses on imports and we already have active representatives in some the African, Asian and European as well as some other countries known for their agricultural and food products. We are trying hard to support our supply chain by not being attached solely to the local market. But this does not mean we or anyone else can ignore the local market, which is very good in terms of quality and competitiveness and provides a big portion of the needs of consumers. The local market has been a very good base for the growth of the whole country.
How do think AswaaqAswaaq
's returns will compare with those of other trade sectors in Dubai?AswaaqAswaaq
is a commercial project and the profits will be good according to our studies. We are running a two-wing business the retail wing in the form of supermarket chain that we will run completely, and the real estate wing, represented by the outlets in Aswaq branches, which will be leased out and provide revenues. Shareholders will get returns from both wings.You talk about offering a high level of customer service and better quality goods. Could you elaborate on this?
A visit to the supermarket is not a good experience at the moment. We will have the best produce in the city in terms of quality, freshness and price. We will be very clear with regard to pricing. Many dealers claim they provide the best goods and prices but they do not, as you can find goods that have passed their expiry dates in some stores. For us the presence of an expired item would be a disaster. This occurs due to the absence of good work ethics. AswaaqAswaaq
will have standard procedures at each step. We will have our own distribution centre designed according to the best international standards. In addition, the store buildings provide the highest health and environment standards. As far as customer service is concerned, at present nobody wishes to help customers because there aren't enough staff in retail stores. What are your plans regarding social responsibility?
We intend to train and employ UAE nationals and help them achieve their potential through our relationship with the Mohammed bin Rashid Establishment for Young Business LeadersMohammed bin Rashid Establishment for Young Business Leaders
.Profile: Abdul Baset Al Janahi, CEO of Aswaaq
Al Janahi has helped facilitate key co-operation agreements with several leading private and public sector organisations as part of his endeavour to offer exclusive privileges to members of the Mohammed bin Rashid Establishment for Young Business LeadersMohammed bin Rashid Establishment for Young Business Leaders
.He has a diploma from MIT Sloan School of Management in the US and holds a higher diploma in business administration from the Higher College of Technology, Dubai.
By Hamed Al Sewerky
© Emirates Business 24/7 2008
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