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Satyendra Pathak
Doha
Lulu Group has made concerted efforts to support Qatar in its endeavours to strengthen national food security since it opened its first store in the country in 2000, Oxford Business Group (OBG) has said in its latest report.
The new COVID-19 Response Report produced by OBG in partnership with the retail chain Lula Hypermarket maps out Qatar’s successful efforts to strengthen food security and enhance self-sufficiency by stepping up domestic production capacity and easing reliance on imports.
Titled ‘Food Security in Qatar’, the report provides an in-depth analysis of the topic, ranging from food production to retail, in an easy-to-navigate and accessible format, supported by key data and infographics.
The report charts the critical role Lulu is playing in Qatar’s efforts to meet its self-sufficiency targets, which include engaging closely with domestic farmers to ensure a consistent and quality supply of local produce in its stores.
According to the report, Lulu’s retail footprint expansion into previously underserved areas has boosted food accessibility in Qatar.
Over recent decades, the report said, Qatar’s rapid economic development and proliferation of mega infrastructure projects have helped to attract a large influx of international workers to the country. As a result, new urban and suburban real estate developments have sprung up in Doha and its environs to cater to the needs of a diverse range of residents.
“In tandem with this, major supermarket chains like Lulu Hypermarket have expanded their footprint to ensure that the residents of fast-growing settlement areas have access to essential food retail services. Lulu now has a diverse portfolio of stores across the country, employing some 4500 staff,” the report said.
As it continues to expand its retail footprint in Qatar, the report said, Lulu is engaging closely with domestic farmers to ensure a consistent and high-quality supply of local produce, which is marketed in dedicated in-store spaces.
“In tandem with this initiative, Lulu continues to expand its storage capacity in the country to ensure reliable stocks of staple foods, which hedges against disruption in global supply chains. This strategy is supported by a global network of export distribution centres that are located in 22 countries,” the report said.
Thanks to ongoing investment in logistics facilities and storage capacity, combined with sustained engagement with local producers, the report said, Lulu was able to meet heightened demand for food products in 2020 as consumers spent more time at home during the COVID-19 pandemic.
“The company generated growth of 10-12 percent across all categories in 2020, which it says was achieved without any inflation in food prices from transferring the ‘pandemic cost’ onto the consumer,” the report said.
Notably, Lulu experienced growth of 37 percent in the fresh food category, supported by the opening of two new stores over the course of the year. Locally produced food witnessed higher sales in most categories, it said.
Lulu entered the pandemic with a diverse portfolio of 12 stores serving a wide variety of geographic areas and social segments in Qatar, the report said adding that Lulu stores provide an extensive variety of fresh and frozen food products and consumer staples from local and international sources.
Lulu opened two new stores in Qatar in 2020 despite the pandemic, it said.
“Lulu opened its 14th Qatari store at the e18hteen Tower, Lusail City, in November 2020. The 2000-sq-metre store is the first to be opened by a retail chain in Qatar’s flagship new smart city, which will eventually house 200,000 residents,” the report said.
According to the report, 2021 is projected to be the biggest ever in terms of store openings in Qatar.
“Lulu plans to open five new stores in 2021 in fast-developing areas including Abu Sidra, Muaither, Ain Khalid and Pearl Qatar. Three more stores are planned to open in 2022, bringing Lulu’s total retail footprint in Qatar to 22 stores. Lulu plans to boost reach and service offerings ahead of Qatar’s hosting of FIFA World Cup 2022,” the report said.
Social distancing and the accelerated migration to e-commerce during the COVID-19 pandemic have changed the face of food sales and forced retailers to adapt to rapidly evolving consumer demands.
As a result, the report said, Lulu had to accelerate its pre-existing strategies for digital transformation and omnichannel retail solutions to keep pace.
“Omnichannel retail is a multiplatform approach to sales that seamlessly blends the customer experience between online and offline channels. With a mall culture firmly embedded among the increasingly tech-savvy Gulf consumer class, Lulu is placing omnichannel retail at the centre of its strategy for post-pandemic growth in Qatar and the region,” the report said.
By enhancing the efficiency and effectiveness of e-commerce services, the report said, Lulu helped to enhance food security during the pandemic by expanding consumers’ access to essential groceries while minimising the need for human contact that could potentially lead to COVID-19 transmission.
Given the fact that food retailers have a key role to play in the transition to a sustainable economic model, Lulu Hypermarket has joined the Ellen MacArthur Foundation as a network member to facilitate collaboration in accelerating the transition to a circular economy.
“A circular economy model minimises waste and pollution, maximises resource efficiency, and promotes the reuse, sharing, repair, refurbishment and recycling of materials. Concrete actions taken at Lulu to support a circular economy model include the segregation of packing cartons and paper waste collected by approved recycling partners and converted into reusable products. Customers will soon be offered a refill option in selected grocery categories, enabling them to refill their containers when they run out,” the report said.
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25/07/2021
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