Dubai-based GMG invests in next-gen tech to improve customer needs

The digital transformation of the Middle East’s retail sector in the last five to seven years has brought immense value in crafting more agile supply chains that accommodate demand. In a recent PwC study, retail CEOs in the region cited key factors to achieve this being their ability to manage faster delivery times, support easier product returns, and balance stock volumes.

“It would be naïve to underestimate the pandemic’s influence on many companies’ digital transformation,” says Sunil Nair, Group CIO at GMG. “The pandemic affected our ability to conduct business in-person, so companies had no choice but to quickly roll out digital tools and amend plans to ensure business continuity. However, many companies have been at the forefront of digital transformation for years, and digitalization has long been part of our business strategy. What has emerged in 2022 is a more robust omnichannel model that leverages the digital innovations of recent years that co-exist with one of the world’s most exciting physical retail landscapes. For example, we often see customers utilizing our own online portals to research merchandise, and then come to the store to see, touch, and complete the purchase.”

In the post-pandemic era, the retail sector is being defined by a “multi-channel approach” where online and offline channels adapt to both compete and support each other. Knowledge and adoption of big data, cloud transformation, internet of things (IoT), augmented reality, and robotics are necessary to remain agile. Retailers will also see more traction in how digital payments are improving, as well as radio frequency identification (RFID), connected stores, biometric security, smart warehouses, and personalized customer experiences.

“Successful digital transformation should start with your top business objectives and being inclusive of all stakeholder viewpoints,” he says. “The most important question that a CIO should ask is, ‘What are we hoping to achieve with our digital transformation initiative?’”

GMG’s strategy revolves around the simple philosophy of daring the company and others to deliver greatness to partners and customers while it constantly challenges itself to examine innovative ways to bring added value to partners and customers. The use of advanced technologies is fundamental to this ambition. According to Nair, increasing speed in delivery is one of the most important things. “The ‘last mile’ generally constitutes the biggest headache for e-commerce operators,” he says. “Recent data suggests that last-mile delivery costs often account for more than 50% of the total cost of shipping and around 40% of the entire supply chain costs. After trials in the US and Europe, autonomous delivery robots may soon appear on a sidewalk near us. Several such projects were announced in Dubai last year, such as Careem and Kiwibot partnering to develop food and grocery delivery robots. Urban planning fundamentals in the region favor such innovations, with the large self-contained residential communities here well suited for autonomous deliveries.”

GMG has structured its framework on the Run, Transform and Grow business model, and its digital initiatives aim to drive efficiencies across those pillars. “In order to gear up for the continued surge in e-commerce demand, GMG deployed an expanded omnichannel ecosystem that enhances customers’ accessibility to leading sports brands through digital and mobile-commerce platforms,” he says. “Our omniverse ecosystem integrates artificial intelligence (AI) capabilities from Einstein, enabling us to hyper-personalize customers’ experiences.” The GMG Sports vertical, for instance, brought new technologies and investments into three key areas: the customer journey, access to inventory across stores, and customer care.

Digital Transformation, E-commerce Services, Retail Industry, Supply Chain