Hypermarket, a symbol of modernization

By Victor D’Souza, Doha
Bellevision Media Network

Doha, 29 September 2010: Since its appearance the hypermarket is a symbol of modernization not only in Middle East but in the whole world. It has dramatically changed the retailing structure and also the consumption behavior of the consumer. Generally the consumers prefer hypermarkets due to the convenience and low prices. But for the retailer shops the hypermarkets have affected negatively. The arrival of hypermarkets has weakened the opportunities for small shops.

 

During shopping, most people feel uneasy about having to bargain and haggle over prices. Some are worried of being shortchanged or cheated by unscrupulous traders. In hypermarkets, all the prices and weights of the products are clearly stated. Also, offering an abundant selection and a broad variety of products, freshness guaranteed by high turnover, and profitability, the hypermarkets confirmed their leadership.

 

The major factor is the economies of scale where hypermarkets often purchase goods in bulk and this translates to lower prices for the consumers. Secondly, the rise in transportation cost affects small traders more than hypermarkets. Besides that, hypermarkets have creative ways to attract customers and maintain their loyalty. For instance, a hypermarket allows customers to collect points on their daily purchases for ’free’ vouchers in return. Hypermarkets, which already carry food, clothing and just about every other household need, are also adding entertainment centers for children and varieties of additional small shops which attract consumers. Hypermarkets are also spending millions on their ambience and decoration.

 

 

Most of the Hypermarkets have got a chain in the Middle East or all over the world and new outlets are being opened every now and then. Some of these Hypermarkets even have their own branded grocery items. The hypermarket provides a leading competitive edge in the food retail sector, offering rock bottom prices while enhancing the choices of consumers. The escalating costs of living and the need for economizing the spending have increased the opportunity and demand for lower-priced consumer goods retailed at hypermarkets.

 

A side-effect of this development is that it has brought down the cost of production of these items. Powder milk that used to come mostly from Europe in the past is now being repacked locally and resold as a local brand in the Middle East. Also, the spices as well as food products from India are being repacked here. This in turn has created new opportunities for the printing and packaging industry and for many other vendors and suppliers.

 

The good thing is that the consumer can now go to a nice mall or hypermarket and shop in a pleasant atmosphere at the same price or even cheaper. Hypermarket brings the best products at affordable prices. This hypermarket is built on a business model that focuses on high volume, but low margin sales. In simple words, by keeping the price of the commodities exceedingly low, the Hypermarket tries to attract customers from all the segments of the society and thereby makes profits.