‘Smart stocking’ to help small retailers big-time

The concept, introduced by Jaleel Wholesale Point, will enable small-scale retailers and groceries to stock a wide a range of brands with the same wholesale price advantages. It will also facilitate the smart use of restricted shelf space in the smaller retail units.

Jaleel Wholesale Point, an innovative venture from Dh1.05 billion Jaleel Holdings, provides “flexibility to neighbourhood grocers and supermarkets to successfully face new and emerging challenges and thrive,” General Manager Ahmed Kabeer said.

“Wholesale Points are designed after the popular cash-and-carry concept prevailing in the European and US markets, with due consideration to the unique characteristics and requirements of the Gulf region,” said Kabeer.

“They are like large supermarkets where retailers can shop around with huge trolleys similar to what end-consumers do in supermarkets. Presently, the eight Wholesale Points across the UAE stock more than 5,000 stock keeping units, or SKUs, in categories like foodstuff, non-food items, cosmetics, home appliances and other FMCG items,” he said.

Kabeer explained that until recently, the main task faced by small-time grocers and neighbourhood supermarkets was to meet the varied requirements of demanding customers, who always look for a variety of brands and packs. “If they do not find them at the groceries, they will turn to bigger supermarkets.”

According to Kabeer, another disadvantage of the old system was that small retailers were forced to restrict their stock to a few brands in each category to avail economies of scale, thus denying the customers freedom of choice. “The vertical stocking of same items eat into their much-valued racks,” he said.

This vertical stocking or overstocking of limited brands may also lead to bulky expiries resulting in lack of fresh merchandise, Kabeer said. This was a major concern in foodstuff and other FMCG product categories. “Even the very existence of small-timers was questioned in the old system and that was when we came up with a single solution called Wholesale Point,” said Kabeer.

“To encourage retailers to switch to this new concept, we first ask them a simple question that how many days do the grocers takes to sell the goods that they buy today. Smart Stocking was built around the fact that business is not in stocking more quantity of the same SKU but in stocking a larger range and selling fast,” said Kabeer.

Jaleel Wholesale Points, on average, services about 5,000 retailers a day with deliveries to more than 1,500. Although goods are delivered to customers, the group encourages retailers to visit the Wholesale Points. “Through smart stocking, smaller retailers of the country are taking on the challenges posed by the retail giants,” said Kabeer.

Jaleel Holdings, established in Dubai in 1972, set up its first Wholesale Point in Sharjah in 2006, and later expanded it to eight outlets in four years. It also has two dedicated sales offices in Deira.

· issacjohn@khaleejtimes.com