Are we heading towards a “Retail Apocalypse”?
Real Madrid. A grand name that motivates and mesmerizes a legion of followers, not only in the region but globally.
Yet, an exclusive distributor of Real Madrid products is trying its best not to go under; Marka PJSC.
Marka PJSC is a retail and dining operator in UAE, Saudi Arabia, and Kuwait.
Since it was established in 2014, Marka has been struggling with generating profit, but it is expecting to be operationally profitable for the first time by the end of 2018.
Why are retail stores, in general, losing profit?
Empowering Retail with technology
With each generation, running errands online is becoming more and more important.
Statista, a leading provider of market and consumer data, shared some statistics about a “Retail Apocalypse” happening because of the e-commerce, and online shopping, especially in the apparel and electronic stores.
Statista refers to The Retail Performance Company, a company that studies and strategize company and customer relationships, with an article explaining that retail is not going out of business. “People are still buying in stores.”
Adding, “In our eyes, it is all about empowering store employees and training them on new technologies to create a first-class consumer experience.”
It explained that any retail business needs to use technology as an advantage, instead of blaming e-commerce.
Where does Marka stand in all this?
With the new CEO, appointed last year, Benoit Lamonerie, Marka is hoping to achieve operational profitability as they said in a brief bourse statement “We believe that [Lamonerie’s] significant expertise and strong knowledge will be vital in leading the company through its next phase of business growth.”
The company’s chairman, Khaled Jassim Bin Kalban, said in a statement published by the Dubai Financial Market: “Over the past 12 months, Marka has focused its efforts on streamlining its structure, exiting unprofitable businesses and making the company ready for growth.
“Today we are pleased to see the positive results this exercise has had, as achieving operational profitability is an important milestone. Marka is now ready to face the future with confidence.”