Client Overview
A leading international retail chain, with operations spanning several countries, sought to expand into the UAE by launching a new ‘Cash and Carry’ outlet model. They engaged Tantra Insights to evaluate the feasibility of their entry into the Abu Dhabi market.
Research Objective
The objective was to assess the viability of opening a ‘Cash and Carry’ outlet in Abu Dhabi by analyzing the market environment, estimating the potential catchment area’s population, and understanding consumer preferences, competitive dynamics, and expected ROI.
Methodology
- Desk Research
- Conducted an in-depth analysis of the UAE retail market with a focus on the ‘Cash and Carry’ model.
- Identified prime locations in Abu Dhabi by mapping the catchment area, analyzing traffic patterns, and estimating the population growth within the catchment zone.
- Assessed market trends, customer preferences, footfall estimates, and growth drivers.
- Analyzed competitors in the Abu Dhabi retail space, their business models, strengths, weaknesses, and market share.
- Qualitative Research
- Focus Groups: Engaged local residents and businesses to explore their perspectives on bulk purchasing and their expectations from a ‘Cash and Carry’ outlet.
- In-depth Interviews: Conducted with retail industry stakeholders to gather insights into market dynamics, potential challenges, and opportunities for the ‘Cash and Carry’ model.
- Quantitative Research
- Conducted online surveys targeting individual consumers and businesses in Abu Dhabi to assess purchasing behaviors, frequency, preferences, and interest in bulk buying.
- Financial Analysis & ROI
- Developed comprehensive financial models, including scenario-based ROI projections, DCF cashflow analysis, financial forecasts, and risk assessments.
- Provided recommendations based on financial viability, risk mitigation, and potential returns.
The study provided actionable insights that helped the client make informed decisions regarding their market entry strategy and the potential success of the ‘Cash and Carry’ outlet in Abu Dhabi.