Tuesday, July 26, 2011

Jaleel Wholesale Points Revolutionise UAE’s FMCG Wholesale Scene

Dubai, 30 March 2011: Jaleel Wholesale Point, the innovative venture from the
AED1.05-Billion Jaleel Holdings, is revolutionising the FMCG wholesale market in the
region, according to Mr. Ahmed Kabeer, General Manager, Jaleel Wholesale Point.

Commenting on the overwhelming response to the new concept, Mr. Kabeer attributed
success first to God Almighty and then to the flexibility provided by Jaleel Wholesale
Points to neighbourhood grocers and supermarkets to successfully face new and
emerging challenges.

The Wholesale Points are designed after the popular cash-and-carry concept prevailing
in the European and US markets, with due consideration to the unique characteristics
and requirements of the Gulf region. They are like large supermarkets where retailers
can shop around with huge trolleys similar to what end-consumers do in supermarkets.
Presently, the eight Wholesale Points across the UAE stock more than 5000 Stock
Keeping Units (SKU’s) in categories like foodstuff, non-food, cosmetics, home
appliances and other FMCG items.

Until recently, the main task faced by the small time grocers and neighbourhood
supermarkets was to meet the varied requirements of demanding customers, who always
look for a variety of brands and packs. If they do not find them at the groceries, they
will turn to bigger supermarkets. Another disadvantage of the old system was that small
retailers were forced to restrict their stock to a few brands in each category to avail
economies of scale, thus denying the customers freedom of choice. The vertical stocking
of same items eat into their much valued racks.

The overstocking of limited brands also led to bulky expiries resulting in lack of fresh
merchandise. This was all the more threatening in foodstuff and other FMCG product
categories. “Even the very existence of small-timers was questioned in the old system and
that was when we came up with a single solution called Wholesale Point,” says Ahmed

Named ‘Smart Stocking’, the concept promulgated by the Wholesale Points, stood for
varied stocking of as wide a range of brands as possible but with the same wholesale
price advantages and smart use of restricted shelf space in the smaller retail units. ‘Smart
Stocking’ ensured small-scale retailers get their ROI [return on investments] faster with
quick rotations of fresh stock.

“To encourage retailers to switch to this new concept, we first ask them a simple question
that how many days do the grocers takes to sell the goods that they buy today. Smart
Stocking was built around the fact that business is not in stocking more quantity of the
same SKU but in stocking a larger range and selling fast,” explains Ahmed Kabeer.

Jaleel Traders LLC, Post Box 3262, Dubai – UAE; T: +971 4 3339191 F: +971 4 3331415;

On an average, Jaleel Wholesale Points’ service about 5000 retailers a day with deliveries
to more than 1500. Although goods are delivered to customers, the group encourages
retailers to visit the Wholesale Points. “Through Smart Stocking, smaller retailers of the
country are taking on the challenges posed by the retail giants,” reiterates Ahmed Kabeer.

Jaleel Holdings, established in Dubai in 1972, first set up their Wholesale Point in
Sharjah in 2006, expanding it to eight outlets in four years.

At present, Jaleel Wholesale Points operate in Musaffah, Abu Dhabi; Nakheel, Ras Al
Khaimah; Aweer, Al Qusais and Al Quoz in Dubai; Al Wahda Street and e University
City Road in Shajrah and behind to the New Fruit and Vegetable Market in Ajman.
Jaleel Wholesale Point also has two dedicated sales offices in Deira Dubai – at Al Ras
and Gold Souq.


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