UAE retailers should not view sustainability as ‘eroding profits’, says Grandiose Supermarkets CEO

So what does this mean? Make a shopping cart out of mesh recycled plastic from the ocean. Use lighting systems in stores to reduce energy consumption and carbon footprint. And more to come.

Scott, chief executive of Grandiose Supermarkets (part of the Ghassan Aboud Group), said going green helps in many ways, including winning customers. And the chain will continue to do so, no matter what the cost.

While low-margin, high-value strategies continue to determine supermarket operations, price is not the only buying criterion, nor is profit margin the only marker of success. The Emirati public is more concerned about the environment than ever before.

A staggering percentage of Gen Z and Millennials (31% each) are willing to pay a premium for brands that demonstrate sustainable behavior. The MENA public is more aware of their personal carbon footprint. This naturally creates an important ecological framework within which retailers should operate to stay ahead of evolving times.

Nearly three-quarters of adults in the UAE want businesses to be environmentally friendly, according to research commissioned by Mastercard. These expectations cannot be ignored, as more than a quarter of businesses will even turn or may resist those that do not commit to eco-friendly business operations.

While sustainability appears to eat into profits from the start, its absence could eat into the entire business.

As a grocery retailer that has not used plastic bags at checkout since its inception in 2017, the (new UAE) regulations have not had a fundamental impact on our operating costs. That said, advocating for sustainability does translate into significant financial outlays, which depending on the company’s approach, can be considered an expense or an investment.

Considering Grandiose’s extensive expansion plans for the rest of the year, we have managed to absorb the cost, or should I say, acquire a long-term bona fide asset through ecological measures to achieve economic success.

As Grandiose Supermarket has been plastic bag free, our customer base has not felt any different since the enforcement. For the majority of customers, the problem area is not the 25 fils fee, but the initial block of remembering to carry a reusable bag before regular shopping.

Grandiose is driving this momentum by creating a range of sustainable shopping trolleys from recycled ocean plastic. Since the brand’s inception, we have saved more than 15 million plastic bags and more than 100,000 marine animals.

Energy efficient lighting, efficient cooling and streamlining operational logistics by sourcing and supporting locally grown products are some of the aspects of our business that we continuously improve to further reduce our carbon footprint. This is just the beginning of Grandiose Supermarket’s sustainability program.

It is the region’s high energy demand for cooling (about 70% of the nation’s electricity consumption) that drives our adoption of energy-efficient store renovations, cold storage, and cold storage.

We then focused on the growing reliance on food imports from the region, prioritizing locally grown products. Next up are moves to address the country’s rising fuel consumption. Grandiose will add fuel-efficient bikes to our online delivery fleet to reduce emissions and transition from a van delivery fleet to a motorcycle delivery fleet.

Grandiose already has presence in Dubai, Abu Dhabi and Ras Al Khaimah, with plans to open 12 new stores this year, bringing the total to 30. As we plan to open 15-20 new stores per year in the short to medium term, we are focused on being the No. 1 community supermarket with a clear focus on freshness and quality.

Grandiose Supermarket already has its own e-commerce channel, and we have always only used paper bags for online deliveries.