Feasibility Study for a Cash and Carry Outlet in UAE
Client Overview
A prominent retail chain with a strong presence in multiple countries was considering expansion into the UAE market with a new ‘Cash and Carry’ outlet model. They approached Tantra Insights to determine the viability of their proposal.
Research Objective
To assess the feasibility of opening a ‘Cash and Carry’ outlet in the UAE, by mapping out the catchment area, estimating the catchment area population, and by understanding market dynamics, consumer preferences, competitive landscape, and potential ROI.
Methodology
Desk Research:
Initial secondary data collection to gather insights about the current retail market scenario in the UAE, focusing on the ‘Cash and Carry’ model, identifying suitable locations, mapping out the catchment area, traffic analysis and estimating catchment area population & growth outlook, estimating footfalls, customer trends, growth drivers, and challenges.
Comprehensive study of existing competitors, their business models, strengths, weaknesses, and market shares.
Qualitative Research:
Focus Groups: Conducted with local residents and businesses to gauge their perceptions, needs, and preferences regarding bulk purchasing.
In-depth Interviews: Held with stakeholders in the retail industry to gather insights about market dynamics, challenges, and opportunities.
Quantitative Research:
Online surveys were conducted targeting both individual consumers and businesses in the UAE to understand purchasing behaviours, frequency, and preferences.
Financial Analysis & ROI:
A thorough financial analysis including scenario analysis, high-level returns analysis, DCF Cashflow, Financial Projections, Project Risk and contingencies and Recommendations.