Key Takeaways for Supermarkets in Dubai and the UAE
The UAE supermarket retail sector has seen significant growth and transformation over the past few years. In 2023, the retail market was worth US$30.17 billion, with a projected CAGR of 6.2% through 2029. In 2024, the market continues to thrive, driven by the rapid urbanization, an expanding expatriate population, and the increasing demand for convenience. The market, encompassing hypermarkets, supermarkets, and online grocery platforms, has become a cornerstone of the UAE's retail landscape. With ongoing investments in retail infrastructure and the adoption of digital technologies, the future of supermarkets in Dubai and the wider UAE looks promising.
In terms of market share, hypermarkets and supermarkets dominate the sector, accounting for approximately 85% of total consumer spending. E-commerce, while growing rapidly, still represents about 15% of the market but is the primary driver of recent growth. Major players like Carrefour, Lulu Hypermarket, and Spinneys lead the market, each with numerous outlets across the country. Dubai, in particular, stands out as a critical hub for retail activity due to its strategic location, diverse population, and robust infrastructure. The supermarket sector in Dubai cannot be ignored as it is a gateway to the rest of the region.
Dubai is the largest city in the UAE and a prominent part of the retail sector. The city serves as a gateway for international brands looking to enter the Middle Eastern market and boasts a consumer base that demands both variety and quality.
Overview of the Retail Market in the UAE
Growth Drivers
The supermarket retail sector in the UAE is experiencing robust growth driven by several key factors. Rapid urbanization and an expanding expatriate population have increased the demand for a wide variety of groceries. Technological advancements and the adoption of e-commerce platforms have also played a significant role, providing consumers with greater convenience. Additionally, a focus on sustainability and healthy living has led supermarkets to offer more organic and eco-friendly products, appealing to the health-conscious and environmentally aware consumer base. Supermarkets in Dubai are at the forefront of such initiatives in the country.
Top 3 Consumer Trends
- Smaller Basket Sizes with More Frequent Trips: Consumers are making smaller, more frequent shopping trips, preferring convenience and freshness over bulk buying.
- Increased Price Sensitivity: There's a noticeable shift towards budget-friendly options and discounted items, particularly as many consumers actively seek deals and cheaper brands.
- Preference for Online Shopping: The convenience of online grocery shopping is increasingly popular, especially among younger consumers and busy professionals, driven by the ease of home delivery and the availability of digital platforms.
Top 3 Market Trends
- Expansion of Hypermarkets and Supermarkets: Major players like Carrefour and Lulu Hypermarket continue to expand their footprint, opening new stores to cater to growing consumer demand.
- Rise of Private Label Products: Supermarkets are introducing their own branded products, with most offering competitive prices and high quality to attract cost-conscious consumers.
- Sustainability Initiatives: There's a growing emphasis on sustainability, with supermarkets adopting eco-friendly practices such as reducing plastic use and promoting organic products.
The Growth of Online Shopping
Online shopping in the UAE has seen exponential growth, driven by technological advancements and changing consumer preferences. According to the report “State of the UAE Retail Economy”, e-commerce penetration in the UAE doubled between 2019 and 2023 to 12%. E-commerce and digital sales grew 19% with the hypermarket/supermarket sector in 2023, contributing to a 3% growth of the sector as a whole. In 2024, the grocery delivery market in the UAE is expected to reach US$35.85 million. The majority of supermarkets in Dubai and other cities across the UAE are offering such conveniences.
The COVID-19 pandemic accelerated online shopping, as consumers sought the convenience and safety of home deliveries. E-commerce platforms like InstaShop, Carrefour UAE, and Noon have become integral to the shopping experience, offering a wide range of products and flexible delivery options. These platforms provide features such as personalized recommendations and loyalty programs, enhancing the consumer experience. The potential for online shopping remains vast, with continuous improvements in logistics and technology poised to make it an even more dominant force in the UAE's retail landscape.
Methodology for Calculating the Biggest Supermarkets in Dubai
Dubai is the largest city in the UAE and is a massive hub of activity in the region. Based on the potential of the supermarket sector and Dubai’s importance, GourmetPro's network of food and beverage experts collaborated extensively to compile a list of the 12 biggest supermarkets in this city. They used a combination of publicly available data alongside their own expertise. The ranking considered key factors, including number of stores, annual revenue, geographical reach, as well as company ownership. This comprehensive approach ensures a well-rounded and accurate representation of the leading supermarkets in Dubai.
The Top 12 Supermarkets in Dubai in 2024 According to Industry Experts
12 - Grandiose Supermarket
- Number of stores in Dubai: 5
- Total number of stores in the UAE: 12
- Locations across the UAE: Abu Dhabi, Sharjah, Ras Al Khaimah
- Annual revenue: US$100 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: Ghassan Aboud Group
Grandiose Supermarket is known for its upscale shopping experience and focus on quality. The supermarket offers a wide range of organic and gourmet products. Unique offerings include a curated selection of international delicacies and specialty health foods.
11 - Waitrose
- Number of stores in Dubai: 6
- Total number of stores in the UAE: 10
- Locations across the UAE: Abu Dhabi, Sharjah
- Annual revenue: US$200 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: Al-Futtaim Group
Waitrose is a high-end supermarket catering to British expatriates and affluent customers. The supermarket is known for its premium products, organic produce, and extensive range of British goods. Unique offerings include gourmet ready meals and specialty cheeses.
10 - Géant
- Number of stores in Dubai: 10
- Total number of stores in the UAE: 20
- Locations across the UAE: Abu Dhabi, Sharjah
- Annual revenue: US$400 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: Fu-com International
Géant is a French hypermarket chain known for its large format stores and comprehensive product range. The supermarket offers fresh produce, electronics, and household items. Unique offerings include exclusive French products and brand merchandise.
9 - Zoom Supermarket
- Number of stores in Dubai: 100+
- Total number of stores in the UAE: 150+
- Locations across the UAE: Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah
- Annual revenue: US$200 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: ENOC
Zoom Supermarket is a leading convenience store chain, primarily located at ENOC petrol stations. Known for its quick service and accessibility, Zoom offers a wide range of products including snacks, beverages, and essential groceries.
8 - West Zone Fresh Supermarket
- Number of stores in Dubai: 15
- Total number of stores in the UAE: 25
- Locations across the UAE: Sharjah, Ajman
- Annual revenue: US$300 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: West Zone Group
West Zone Fresh Supermarket is known for its fresh produce and high-quality meats. The supermarket caters primarily to the Southeast Asian expatriate community. Unique offerings include Southeast Asian groceries and popular Filipino products.
7 - Viva Supermarket
- Number of stores in Dubai: 8
- Total number of stores in the UAE: 20
- Locations across the UAE: Abu Dhabi, Sharjah
- Annual revenue: US$150 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: Landmark Group
Viva Supermarket is celebrated for its budget-friendly prices and high-quality products. The supermarket's slogan "Fresher, Cheaper, Better" highlights its commitment to providing fresh, affordable groceries. Unique offerings include exclusive deals on fresh produce and staple goods.
6 - Al Maya Supermarket
- Number of stores in Dubai: 18
- Total number of stores in the UAE: 44
- Locations across the UAE: Abu Dhabi, Sharjah, Ajman
- Annual revenue: US$600 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: Al Maya Group
Al Maya Supermarket is known for its convenient 24/7 operation and extensive range of products. The supermarket offers unique international products and home delivery services, including international orders. Unique offerings include North African specialties and exclusive Asian products.
5 - Union Coop
- Number of stores in Dubai: 21
- Total number of stores in the UAE: 40
- Locations across the UAE: Abu Dhabi, Sharjah, Ajman
- Annual revenue: US$1.5 billion
- Headquarters: Dubai, UAE
- Owner of the supermarket: Union Cooperative Society
Union Coop is a major player in the UAE's retail sector, known for its wide product range and community-focused initiatives. The supermarket emphasizes fresh produce and high-quality groceries. The stores’ products include locally sourced items and exclusive private label goods.
4 - Choithrams
- Number of stores in Dubai: 15
- Total number of stores in the UAE: 30
- Locations across the UAE: Abu Dhabi, Sharjah, Fujairah
- Annual revenue: US$750 million
- Headquarters: Dubai, UAE
- Owner of the supermarket: T. Choithram and Sons
Choithrams offers a wide variety of products catering to local tastes and international preferences. The supermarket is known for its fresh fruits and vegetables and diverse selection of international foods, in particular specialty Indian spices and ethnic foods.
3 - Spinneys
- Number of stores in Dubai: 12
- Total number of stores in the UAE: 30
- Locations across the UAE: Abu Dhabi, Sharjah, Ras Al Khaimah, Al Ain
- Annual revenue: US$1.2 billion
- Headquarters: Dubai, UAE
- Owner of the supermarket: Albwardy Investment
Spinneys is celebrated for its high-quality products and premium customer service. The supermarket is particularly noted for its fresh, organic produce and extensive range of international foods. Spinneys also offers unique ready-to-eat meals and specialty items such as non-halal products.
2 - Lulu Hypermarket
- Number of stores in Dubai: 20
- Total number of stores in the UAE: 42
- Locations across the UAE: Abu Dhabi, Sharjah, Al Ain, Fujairah
- Annual revenue: US$7.4 billion
- Headquarters: Abu Dhabi, UAE
- Owner of the supermarket: Lulu Group International
Lulu Hypermarket is renowned for its vast array of products, from groceries to electronics. Known for its strong emphasis on fresh produce and international products, Lulu Hypermarket is a favorite among diverse consumer groups. Unique offerings include exotic fruits and imported delicacies.
1 - Carrefour
- Number of stores in Dubai: 14
- Total number of stores in the UAE: 38
- Locations across the UAE: Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah
- Annual revenue: US$3.5 billion (estimated)
- Headquarters: Dubai, UAE
- Owner of the supermarket: Majid Al Futtaim
Carrefour is a global retail giant known for its extensive product range and competitive pricing. The supermarket offers everything from fresh produce to electronics, making it a one-stop shop for consumers. Carrefour is committed to sustainability, actively reducing plastic use and promoting eco-friendly products. Unique products include a wide selection of organic items and specialty international foods.
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FAQs about Supermarkets in Dubai and the UAE
1. Which is the leading supermarket chain in the UAE?
Carrefour is widely recognized as the leading supermarket chain in the UAE. With 14 stores in Dubai and 38 across the country, Carrefour dominates the market with its extensive product range and competitive pricing. The chain is owned by Majid Al Futtaim and is known for its commitment to sustainability and customer service. Carrefour’s strong presence and strategic locations make it a favorite among consumers, providing everything from fresh groceries to electronics under one roof.
2. What is the size of the grocery retail sector in the UAE?
The grocery retail sector in the UAE is a significant part of the economy, with an estimated market size of around US$20 billion. Hypermarkets and supermarkets account for approximately 85% of consumer spending, reflecting the sector's dominance. The continuous growth is driven by rapid urbanization, a diverse expatriate population, and increasing demand for convenience and variety. This sector's robust expansion showcases its vital role in the UAE's retail landscape.
3. How big is online grocery retailing in the UAE?
Online grocery retailing in the UAE is growing rapidly, making up about 15% of the total grocery retail sector. In 2024, the grocery delivery market in the UAE is expected to reach US$35.85 million. The convenience and flexibility offered by e-commerce platforms like InstaShop, Carrefour UAE, and Noon have fueled this growth. The trend accelerated due to the COVID-19 pandemic, which highlighted the importance of safe and convenient shopping options. The sector continues to expand, driven by technological advancements and changing consumer preferences.