Retail Evolution: Innovation & Sustainability

Fahed Ghanim, CEO of Majid Al Futtaim Lifestyle, shares his journey in the luxury retail industry, the evolution of consumer behavior in the GCC, and how innovation and sustainability are shaping the future of retail through iconic brands like Poltrona Frau.

What initially attracted you to a career in retail and lifestyle, and how did you get started in the industry?

I’ve always had a passion for luxury, and after completing my MBA at ESCP in France, my coach encouraged me to pursue what truly excited me—customer experience and the luxury sector—rather than following the conventional path into consultancy. I followed that advice and soon landed a role with Bulgari at Al-Tayer, and the rest, as they say, is history.

Tell us more about Poltrona Frau and the Imagine Collection.

Poltrona Frau is a leading Italian brand known for its luxurious craftsmanship and timeless design. The Imagine Collection, showcased at Downtown Design 2024, represents the brand’s vision for the future of modern living, combining traditional artistry with innovative design. It features a range of striking pieces from celebrated designers, including Faye Toogood’s Squash Collection, Jean-Marie Massaud’s Archibald Bed and Archibald Task Managerial Office Chair, and Draga & Aurel’s Parka Sofa.

In addition, the collaboration with Ceccotti Collezioni, which featured the refined DUO Collection of tables and chairs by Roberto Lazzeroni, further highlighted the shared commitment to Italian craftsmanship and timeless luxury at Downtown Design 2024.

How do you approach innovation while maintaining the identity and values of long-established brands in the Majid Al Futtaim portfolio?

Innovation and brand identity are not mutually exclusive, in fact, they complement each other. While we are committed to preserving the core values and identity of each brand, we also embrace innovation across all aspects of the business—not just in the products themselves. Our approach is to continuously evolve and enhance the customer experience, ensuring it aligns with the brand’s essence.

Can you elaborate on the role of advanced analytics in shaping Majid Al Futtaim’s business strategies?

At Majid Al Futtaim, advanced analytics play a vital role in shaping our business strategies and enhancing the customer experience. By leveraging AI and machine learning, we optimize product forecasting, ensuring we meet customer demand while reducing inventory and increasing revenue. Our data-driven insights allow us to personalize product recommendations, content, and marketing, creating a more tailored and relevant shopping experience. We also use analytics to stay ahead of evolving customer expectations, helping us design immersive, innovative retail experiences. Additionally, we focus on segmenting and understanding different customer groups, allowing us to deliver more personalized and targeted strategies that resonate with diverse consumer needs. Through these efforts, we continue to refine our offerings and strengthen our connections with customers across all touchpoints.

What trends in consumer behavior have you observed in the GCC, and how are you adapting your retail strategies to meet these changes?

We’ve observed several key trends in the GCC market, including the rise of omnichannel journeys, a growing interest in sustainability and brands that support a cause, a demand for hyper-personalization, and an increasing focus on innovative products. In response, we are leveraging advanced analytics and working closely with sustainable brands to align with these values. Additionally, we’ve implemented customer value management systems to provide more personalized messaging and are embracing technologies that enhance the overall customer experience and serve a clear purpose in improving engagement.

How does Majid Al Futtaim – Lifestyle plan to leverage digital transformation to reach new customer segments?

By embracing an omnichannel approach, we can reach a wider audience through social media, our e-commerce platform, or other digital touchpoints. We also harness advanced analytics to identify and retarget similar customer segments across our brands, gaining valuable insights into customer behavior and preferences. This allows us to better understand their interests, helping us introduce them to additional brands and products.

How do you ensure consistent brand experiences across both online and offline retail channels?

Maintaining a coherent brand presence, both visually and in tone, across all touchpoints and communications. Our Marketing and Digital teams work closely together to ensure a seamless, cohesive experience for customers.

How important is sustainability to Majid Al Futtaim – Lifestyle, and what initiatives are you taking in that regard?

Sustainability is a core value at Majid Al Futtaim Lifestyle, and it guides both our business strategies and operations. A recent consumer study showed that over 50% of UAE shoppers are willing to pay more for sustainable products, which reflects a growing demand for eco-conscious choices. In response, we are committed to aligning with these values by integrating sustainable practices across all aspects of our business. We prioritize energy-efficient designs, eco-friendly materials, and water-saving solutions in our new store openings, earning multiple sustainability awards. Additionally, we have implemented waste reduction initiatives, recycling programs, and eliminated single-use plastics across our operations. Our long-term goal is to achieve a Net Positive business model by 2040, producing more energy and water than we consume.

With multiple high-profile brands under your management, how do you foster collaboration and innovation among your teams?

Building trust is integral to any relationship, this is achieved through transparency and open communication. By consistently delivering on our commitments and obligations, we establish credibility and trust with our partners. This creates an environment for open collaboration and innovation. Ultimately, the goal is for everyone to work together towards a common objective: creating an outstanding customer experience.

What are the biggest challenges in expanding Majid Al Futtaim’s retail presence into new markets, and how are you addressing them?

One of the biggest challenges is understanding the local customer and market nuances to develop the most effective market strategy and offer the right brands and products. We work closely with local teams who have strong market knowledge, ensuring we can tailor our approach to each specific region.