Retail Competitiveness Hinges on Service Quality: BCCI

TDT | Manama

Email: mail@newsofbahrain.com

TDT | Manama

The Bahrain Chamber of Commerce and Industry (BCCI) has stressed the importance of developing the retail sector to keep pace with rapidly evolving consumer behaviour and purchasing patterns, highlighting service quality and operational efficiency as critical factors in maintaining competitiveness.

Shaker Mirza Al Huli, a member of the BCCI Board of Directors, said retailers face significant changes in consumer expectations, requiring businesses to modernise management practices, improve operational performance and enhance service delivery to remain competitive in a changing marketplace.

Al Huli noted that competition in the retail sector is no longer determined solely by expansion and increasing the number of outlets. Instead, success is increasingly driven by service quality, responsiveness and a deeper understanding of consumer needs, as shoppers place greater emphasis on value for money, product quality and speed of service.

He explained that the rapid growth of e-commerce and on-demand services has fundamentally transformed the market and intensified competition. Consequently, businesses must move beyond traditional operating models and focus on improving customer experience, increasing efficiency, reducing waste and leveraging modern technologies and data analytics to enhance decision-making and service delivery.

He added that the retail and food sectors remain closely linked to daily economic activity, making adaptability essential for business continuity and stability. He noted that Bahrain's private sector has accumulated significant expertise, helping to maintain market stability and provide consumers with diverse options despite various economic challenges.

Al Huli highlighted digital transformation as one of the primary drivers of retail sector growth. He pointed out that the value of e-commerce in Bahrain reached approximately BD1.722 billion in 2025, up from BD1.501 billion in 2024, representing growth of 14.7 per cent. The figures reflect continued shifts in consumer purchasing behaviour and the growing role of technology in enhancing services and business efficiency.

He also noted that the wholesale and retail trade sector recorded growth of 2.8 per cent in 2024, underscoring the importance of continued investment in operational and technological capabilities across the industry.

Looking ahead, Al Huli said businesses should explore opportunities for mergers and strategic integration where appropriate, particularly among medium and large companies. Such initiatives could help reduce operating costs, strengthen competitiveness and improve long-term sustainability in the face of rising costs and rapidly changing market conditions.

He reaffirmed the Bahrain Chamber's commitment to supporting the development of commercial and service sectors and enhancing their ability to respond to economic changes. He noted that the restructuring of sectoral committees during the current term aims to strengthen engagement with businesses, identify challenges and opportunities and submit recommendations that contribute to improving the business environment and boosting private sector competitiveness.

Al Huli concluded by warning that companies that fail to adapt to changing consumer behaviour and modernise their operations will face increasing challenges in maintaining market share. He stressed that future success will depend on innovation, customer experience, effective use of technology and stronger cooperation between the public and private sectors to create a more resilient and competitive economy capable of achieving sustainable growth.