As the second Carrefour opened last week in Alexandria, Al-Ahram Weekly explores whether Egyptians will buy the concept, as well as the goods, of a hypermarket Mega-stores have arrived in Egypt. Those who bear the 20-minute trek to Maadi's supermarket wonderland will be the actual judges of just how great it is and whether or not it is here to stay. Maadi City Centre, a brand-new shopping and entertainment complex, is the host of Egypt's first hypermarket Carrefour. Its endless square-footage packed with various merchandise appears enough to dazzle the flocking crowds; but, as Hannah Rashdan wonders, for how long? All the hype and grandeur of a store's opening is not enough to keep the crowds coming, as the ill-fated financial losses of other foreign supermarkets, that have come and gone, have proven. Since it opened on 17 December, Carrefour has enjoyed a huge number of visitors who have come to see for themselves what a hypermarket has to offer. Their collective opinion will decide if this French chain has what it takes to be successful in Egypt. French for "crossroads", Carrefour is known for selling more food than anyone else in France, and more total goods worldwide, second only to Wal-Mart. Credited with inventing the hypermarket, something larger than a supermarket, Carrefour sells a bit of everything with emphasis on low prices. While the concept of hypermarkets has taken off outside Egypt in terms of social approval, the Egyptian culture may take its time in following the trend. Essential to society's acceptance of Carrefour is an appreciation for its concept, and what it has to offer. For Egyptians, this means making an effort to spend their free time shopping at Carrefour rather than at smaller, perhaps more conveniently located, neighbourhood supermarkets. In a culture that highly values family-oriented and neighbourhood-friendly environment, it remains to be seen whether Egypt at present is a place conducive to hypermarket success. The Majid Al-Futtaim Group of Dubai (MAF), one of the Gulf's most reputable retailers, created the Egyptian subsidiary MAF MISR to build Carrefour at Maadi City Centre, its first investment outside the Gulf. During the inauguration of Carrefour, Chairman of MAF MISR Said Al-Tayer announced that the group will further invest $440 million in Egypt, on various projects, through the year 2011. MAF's decision to launch a French hypermarket in Egypt, just a year following Sainsbury's withdrawal from a similar project, came at a time when launching a foreign chain locally was considered risky business due to the inflamed Arab-Israeli conflict. Considering speculation linking Sainsbury's pullout with anti-Israeli sentiment, Carrefour represents an opportunity for Egypt to embrace the much-needed foreign investment, which Sainsbury could not afford to provide. According to Mohamed Galal, MAF MISR's general manager of business development and commercial operations, "Carrefour is focussed on Egypt's middle-income families as its target customers." Carrefour thus sets itself apart from chains that cater to high-income families, such as Metro and Alpha Market. And, with an impressive 8,500 square meters, convenient assortment of products, and a unique partnership between Arab group MAF and the French chain Carrefour, this hypermarket falls into a category of its own. Sally El-Desouqi, 23, heard about Carrefour through friends, and found the store to be identical to the Carrefour she knows in Paris. "I know the name, and it is the same well-organised system as other Carrefour stores. Despite being packed, because it has recently opened, it is an advantage to be able to shop for everything in one place," said El-Desouqi. She found City Centre to be more convenient and practical compared to other malls in Cairo, and its variety of shops a major plus. While most of those asked by Al-Ahram Weekly if they would return to City Centre's Carrefour answered positively, there were a few who admitted they would not. Among those is Khalid Mustafa, a resident of Mohandessin, who said, "There's nothing in Carrefour I can't find somewhere closer to home." The fact that one shopper's definition of convenience is another's discouraging inconvenience, raises the question of whether more, or less, Egyptians see the need to shop at a hypermarket. At Maadi's City Centre, Carrefour is surrounded by more than 40 shops, showcasing both international and Egyptian merchandise, including popular stores like The Tie Shop, Guess, Concrete, Timberland, Adidas and Baraka to name but a few. With Magic Planet for the children, a giant Cinema complex, several restaurants, a cozy Cilantro Café on the shoulder of Carrefour, and a grand food court opening soon, City Centre's attractions provide ample opportunity to empty your pockets. Dina Sabri, mother of two, complained, "I spent more time and money on entertaining my children than buying what I needed. Unless I leave the children at home next time, Carrefour will be too much of a hassle." Some other City Centre visitors find the mall's crowd to be overwhelming; but they seem to acknowledge some of its perks. Among these is a very large car park providing free parking directly at the mall's entrance, and the convenience of a variety of stores and products. And while free parking may seem to be a plus for some, Sherif Salama, 39, complained, "The lagna (traffic inspection), as you enter Carrefour's parking lot is terribly misplaced. How can anyone walk into Carrefour and spend money after receiving a mokhalfa (ticket)?" As for Carrefour, only time will tell the level of success the new hypermarket is to enjoy. To obtain an inside perspective on what it takes to be a successful supermarket chain in Egypt, the Weekly asked the Egyptian chain, Alpha Market, for some expertise. "High quality service maintains customer loyalty," said Mirette El-Hariri, assistant marketing manager of Alpha Market -- which has been successful in Egypt for over 20 years and markets itself as a department store, its merchandise including designer labels in addition to household goods and food items. Along with quality service and products, marketing is also a key for success. Carrefour's marketing strategy thus far consists of newspaper and radio advertisement, with a heavy reliance on word of mouth. Nevertheless, as much as the grape vine is a useful marketing tool, especially in a city that likes to talk, word on City Centre has mainly attracted Maadi shoppers. However, despite its proximity to, and partial reliance on, Maadi's consumer population, City Centre may not be able to rely on the Maadi crowds alone to sustain its initial success. While Amira Shaker, a part-time salesperson for Glitter, an accessory shop, suggests that "the Al-Futtaim group needs to up its marketing strategy", MAF seem to have another plan. MAF's approach to marketing strategy may not be the sole reason for the majority of Carrefour's crowds consisting of Maadi residents. Again the issue of social acceptance for the hypermarket might play a role. Will Egyptians from other parts of Cairo spend their time and money at Carrefour rather than other supermarkets? Will they replace quality family time which so many seek on Friday afternoons with shopping at City Centre? Egypt's appreciation for the new and alternative hypermarket might mean the sacrifice of traditional habits, such as neighbourhood supermarkets and extended Friday family lunches. Others, on the other hand, argue that shopping for all the family's needs in one place once or twice a month may actually save time as well as money. With regards to long-term success, the combination of Carrefour's size and its commitment to competitive prices raises questions of sustainability. How will the hypermarket, which employs around 420 personnel, maintain those competitive prices and generate enough sales to justify its size? According to MAF MISR's Galal, "there is a misunderstanding that providing low costs leads to losing money. MAF Carrefour makes available all kinds of products at competitive prices by reducing the profit margin, and selling 'value for money products', which makes money." According to Galal, Carrefour has done that successfully throughout the Gulf, and therefore Egypt should not be an exception. Having allocated two billion Egyptian pounds for the Carrefour project so far, with one billion already spent, "MAF was keen to invest in the Egyptian market because of our strong belief in the Egyptian economy," Galal said. "And, in the coming 10-15 years, MAF will expand tremendously in Egypt," he believes. MAF's intended expansion is based on development projects supported by the Egyptian government. Galal explained that MAF hopes to work with Egyptian businessmen "in some sort of consortium with Gulf investors to create local developments that will push the economy forward and create jobs for young Egyptians, while helping to develop new residential zones". The location chosen for Maadi's City Centre is an example of the type of undeveloped area targeted by the group's development scheme. With the government's support, and through these projects, MAF aims to promote new communities. The development initiative that started by the creation of City Centre will continue further. Following the opening of a much larger Carrefour in Alexandria on 22 January, MAF's Galal is now talking of "a very interesting project coming soon in Heliopolis."
