In the UAE’s grocery sector, established brands continue to enjoy robust profit margins, yet retailers are increasingly facing significant challenges due to intensified competition and evolving consumer preferences. However, within these challenges lies a silver lining of growth opportunities. A notable trend is the rising strategic focus on private labels among grocery retailers. Private labels offer the potential for enhanced profitability, stronger customer loyalty, and better operational management, positioning them as pivotal in navigating the dynamic changes within the retail landscape.
The Power Shift: From Brand to Retailer
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